Looking to invest $2,500 in the stock market soon? With stocks across many industries trading down even as business fundamentals remain promising, it's a prime time to buy stocks on the dip if you're in the position to do so.
On that note, let's take a look at three top stocks you may want to consider. One caveat: You shouldn't be investing money that you'll need again soon for bills, and any investment you make should be with a three- to five-year minimum time horizon in mind. With that, let's dive right in.
1. Monday.com
In an age of distributed teams and hybrid/remote/flex work, it's more important than ever for companies to keep their employees and customer relationships on track with comprehensive management software. Monday.com's (MNDY 2.00%) suite of software solutions does exactly that.
And with household names like Hulu and Coca-Cola counted among Monday.com's cohort of more than 152,000 faithful customers, the company is meeting the demands that businesses of all sizes and across every industry have in the modern, digital age.
Shares of Monday.com, which went public in mid-2021, have largely followed the trajectory of other tech-oriented growth stocks in the past year. Currently, the stock is trading down by more than 70% from 12 months ago.
However, the company's business growth and balance sheet tell a far different story than what these movements might indicate. In the most recent quarter, Monday.com's revenue shot up 75% year over year, while its segment of customers with more than $50,000 in annual recurring revenue increased nearly 150% from the year-ago period. It also closed the three-month period with $835 million in cash on its balance sheet.
NASDAQ: MNDY
Key Data Points
Investors understandably soured at the company's $46 million operating loss for the quarter, although this isn't unusual for a cloud stock in this stage of its business maturity. Monday.com's strong, consistent top-line growth and robust customer retention that provide predictable sources of revenue all bode well for the company's future growth prospects.
The key here is to see if it can trim its losses and move toward both profitability as well as cash flow positivity (the latter of which management has said could happen in the second half of next year).
For investors with the risk appetite to stomach further near-term volatility, an innovative company like Monday.com could pose an intriguing addition to a long-term portfolio. At its current share price, a $2,500 investment in Monday.com would leave you with about 23 shares.
2. Procter & Gamble
A completely different kind of stock from the previous pick, Procter & Gamble (PG 1.72%) is a tried-and-true value play that has shown its ability to lend steady returns and dividends to investors' portfolios throughout many market cycles.
The company's status has a Dividend King means that it has not only paid out but increased its dividend for an incredible 66 years and counting. In the past five years alone, Procter & Gamble's dividend has increased by over 30%.
In the most recent quarter, Procter & Gamble reported mid-to-high single-digit organic sales growth across all its product categories, with total net sales rising 1% from the year-ago period. While its bottom line retreated slightly year over year, it still reported nearly $4 billion in net earnings for the three-month period.
Those growth figures stand against the backdrop of the past five years, in which the company has increased its annual revenue by 20% and its annual net income by 51%.
NYSE: PG
Key Data Points
Procter & Gamble isn't a stock that yields super-fast returns overnight or generates eye-popping quarterly figures. However, its financial consistency and the general non-cyclicality of the products it sells -- from diapers to razors to dryer sheets -- make it an attractive addition to a well-diversified portfolio. Looking back over the trailing-five-year period, the stock has delivered a total return of 73%, nicely outpacing the S&P 500's return of 64% during the same time frame.
Right now, you could get approximately 19 shares of Procter & Gamble with a $2,500 investment.
3. Innovative Industrial Properties
The final pick for today's list of stocks is a top marijuana stock that doesn't actually grow or sell marijuana. Innovative Industrial Properties (IIPR +0.20%) is a real estate investment trust (REIT) that owns a portfolio of industrial facilities and warehouses, which it leases to medical-use cannabis operators.
Founded in 2016, the stock not only has an impressive history of consistently recording strong revenue and earnings growth, but investors have yielded the benefits of its success in both share price returns and dividends.
Bear in mind, Innovative Industrial Properties' REIT structure means it has to pay at least 90% of its taxable earnings out as dividends.
Over the past five years alone, the cannabis stock has delivered a total return of 524% -- more than eight times that of the S&P 500 in the same period -- while its dividend has jumped over 620% in that window of time. That dividend currently yields a hefty 7.2% for investors at the time of this writing.
NYSE: IIPR
Key Data Points
In the most recent quarter, Innovative Industrial Properties reported a 99% rent collection rate, with revenue and adjusted funds from operations (FFO) rising 44% and 40% compared to the year-ago period. This follows revenue and AFFO growth of 75% and 78% in 2021.
A $2,500 investment in Innovative Industrial Properties at its current price would add approximately 25 shares to your portfolio.
