Investing is too complicated for most people. And you need a lot of money to get started. Those are two myths about investing that aren't true.
The reality is that investing can be relatively simple. Finding stocks with solid growth prospects and attractive valuations isn't all that hard to do. Anyone with a modest amount of money can buy them.
There are plenty of such opportunities. But if you want a good place to start, here are three no-brainer stocks to buy right now for less than $100.
1. Alibaba Group
Alibaba Group (BABA 0.59%) ranks as one of the top technology companies in China. Its businesses include e-commerce platforms, digital media and entertainment, logistics, and cloud services.
You can buy American Depositary Receipts (ADRs), which are securities that represent shares of a non-U.S. company, of Alibaba for around $87 at the current price. That price reflects a forward price-to-earnings ratio of only 9.3x.
This dirt cheap valuation is due largely to the economic headwinds that Alibaba has faced in China, especially with the impact of the COVID-19 pandemic. However, the company's prospects remain bright, thanks in large part to the AI boom.
Alibaba plans to restructure into six separate independent businesses. This move could enable the company to unlock the real value of its operations and reward investors handsomely.
2. Bank of America
Bank of America (BAC -0.21%) is the second-largest U.S. bank with a market cap of over $220 billion. Its total deposits topped $1.9 billion in the first quarter of 2023.
You could nearly buy four shares of Bank of America with $100; its shares currently trade at under $28. The stock is cheap in another way as well. BofA's forward earnings multiple is under 8x.
Like most bank stocks, Bank of America's shares were hit hard in the wake of several U.S. banks failing earlier this year. But BofA remains one of the strongest banks around. Its revenue and profits continue to grow, while its balance sheet is rock-solid.
Bank of America also stands out as a technological innovator. The company has won multiple awards for its digital banking services. Patient investors willing to wait for the impact of the banking crisis to fade should have a great buying opportunity right now with this top bank stock.
3. CVS Health
CVS Health (CVS -0.22%) is best known for its nearly 9,700 retail pharmacy stores. The company also operates one of the largest pharmacy benefits management (PBM) services. Its Aetna unit ranks as one of the top health insurers in the U.S.
You can scoop up one share of CVS right now for around $70. The healthcare giant's valuation is attractive, with shares trading at close to 8x forward earnings.
One reason behind CVS Health's bargain price is that its PBM unit lost a big contract with Centene . The company also lowered its full-year revenue guidance earlier this year.
Still, the aging population should be a solid long-term tailwind for CVS Health. The stock also offers a great dividend with a yield of nearly 3.5%.
