Investing $100 can be a good amount to get started in stocks, especially if you're using a brokerage that charges low commission fees or none at all. And over time, you can steadily grow your investment as you have the money to do so; there's no rule that says you have to put $5,000 or $10,000 to work at once.
A good place to invest in for the long term is healthcare because there are many businesses that should get much bigger in the future as the population grows and gets older. Two stocks that are trading for less than $100 and are excellent buys right now are CRISPR Therapeutics (CRSP 0.34%) and CVS Health (CVS -0.22%).
1. CRISPR Therapeutics
CRISPR Therapeutics could be on the cusp of something big. The company recently announced that the Food and Drug Administration accepted its Biologics License Application for exa-cel as a treatment for sickle cell disease and beta thalassemia, a couple of rare blood disorders. It has been working on the gene-editing therapy along with Vertex Pharmaceuticals and the two companies will share in the profits, with Vertex taking a 60% slice.
What's promising about this treatment is that even at a price tag of $1.9 million, experts at the Institute for Clinical and Economic Review project that it would be a cost-effective treatment. Gene-editing therapies could be transformative in the healthcare industry, and investing in companies like CRISPR that are still in their early stages -- and have no approved products -- could be a great option for long-term investors to consider.
The biotech's market capitalization is less than $5 billion and with an approved therapy or two, it could quickly rise in value and potentially be an acquisition target for a larger healthcare company. The shares currently cost around $58 apiece, but three of the past four price targets set for the stock have it hitting at least $70 over the next 12 months. In the long run, there could be even more upside for investors.
CRISPR is a good stock to invest $100 in and to continue loading up on as it potentially gets much more valuable in the future.
2. CVS Health
CVS Health stock can't seem to get out of a funk because it remains near its 52-week low. With the shares at around $69, investors are getting a potential bargain from this established business. While many investors may know it as being a top pharmacy retailer, CVS also has a pharmacy benefits business, and it has even expanded into primary care, recently closing on its $10.6 billion acquisition of Oak Street Health.
By diversifying its business into more areas of healthcare, CVS can set itself up as one of the leading healthcare companies in the future. Today, its market cap is around $90 billion, but given its aspirations for continued growth, it wouldn't surprise me to see the stock double or triple in value over the next decade as there are more seniors in the U.S. country and a greater need for healthcare.
Another great reason to pile money into the stock is that it pays a dividend that yields 3.5%, which is more than double the S&P 500 average of 1.6%.
Although investors may not be thrilled with some of its recent acquisitions and that might explain why it's down 26% so far in 2023, it could help set the shares up for much greater gains in the future. Analysts also think the stock is grossly mispriced: According to the consensus analyst price target of more than $106, CVS could jump by over 50%.
Investing $100 in the stock and adding to that holding over time can be a way for investors to build up a good position in the growing healthcare company.
