It's always a smart idea to set cash aside to invest at the right moment. It doesn't have to be a huge amount. With even a few dollars, you might find a promising stock that will grow your money over time. Right here, though, I'll talk about what you can buy if you've got about $150 waiting in the wings.
With that amount, you can invest in leaders in three high-growth industries. Amazon (AMZN -1.73%) is a giant in e-commerce and cloud computing. And Teladoc Health (TDOC 0.22%) dominates the world of telemedicine. Today, both of these stocks are trading at bargain levels.
Let's take a closer look at these players that promise you a lot of bang for your buck.
1. Amazon
Amazon has a solid track record of earnings growth. Increasing interest rates and general economic turmoil have weighed on revenue and profit over the past year, though. And that's hurt demand for Amazon stock.
But here's why Amazon still represents a great investment. First, the company is taking major steps to handle today's challenging times. Amazon is improving its cost structure -- this should help it today and make the company stronger in a better economic environment, too. For example, Amazon is cutting 27,000 jobs this year, and it's shifting investments into the higher growth area of technology infrastructure.
Second, Amazon's long-term prospects haven't changed. The e-commerce and cloud computing markets are set to grow by double digits this decade. As a leader, Amazon should benefit. A good sign is that Amazon's revenue continues to climb.
The company also is ensuring its position in the cloud computing business by offering customers lower- priced data storage solutions now as they're watching their budgets. Keeping these customers is key. That's because the cloud business -- Amazon Web Services (AWS) -- in better times generally has driven Amazon's profit.
AMZN PS Ratio data by YCharts
Now, let's check out valuation. Investors have fled stocks sensitive to the economy -- and that's hurt Amazon shares. The stock is trading around its lowest in relation to sales since 2015. Considering Amazon's long-term picture, this looks dirt cheap.
2. Teladoc Health
Teladoc has significantly increased revenue and online visits over the past few years. In the earlier stages of the pandemic, the company posted triple-digit growth in both areas. That's now slowed to double-digit growth -- which still is something to cheer about.
But Teladoc disappointed investors with noncash goodwill impairment charges last year. These were linked to its purchase of chronic care specialist Livongo back in 2020. This deepened investors' worries about the company's ability to reach profitability.
There are reasons to be optimistic about Teladoc's ability to get there though. Earlier this year, Teladoc announced it would take a more "balanced approach" when considering growth and eventual profitability. The idea is to increase efficiency -- and this includes working on the company's cost structure. As part of this, Teladoc has cut some jobs and office space.
Another positive is Teladoc's progress in the telemedicine market. Clients are flocking to the company's "whole person" care model -- this means members can go to Teladoc for both primary care and specialists, including mental health. For the full year 2023, Teladoc forecasts revenue growth of at least 6% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of at least 12%.
What do we have to pay for this? Teladoc is trading at 1.6 times sales, its lowest price ever by that measure. The worst probably is behind Teladoc. And investors who scoop up shares at this bargain level may be glad they did.
