3 No-Brainer Stocks to Buy Right Now for Less Than $90

One important lesson all investors need to learn is that a stock's price does not determine how expensive it is. There are stocks that are expensive despite having a low share price, and cheap stocks with high share prices. However, for those with limited capital to invest, the price of a stock could matter.

Many brokers allow investors to purchase fractions of a share, making any company affordable. Some brokers still don't allow this, making some stocks more difficult to buy with limited funds. Luckily, there are plenty of great businesses that have stocks with low share prices. Here are three stocks that trade for less than $90 that are no-brainer, quality businesses to buy right now.

1. PayPal

Digital payments company PayPal (PYPL 2.90%) has had some lumpiness in its financial results that make it hard to determine if the company is on track or not. This is common; financial performance is not always "up and to the right," even for the best companies. Sometimes it's good to take a step back and look at the long view. Consider the compound annual growth rate (CAGR) for these metrics from 2015 through 2022.

Data source: PayPal.

CAGR is a good calculation to use for a company like PayPal because it smooths out the growth rate, taking each year's growth and distributing it evenly. What results in the case of PayPal is a clear picture of sustained, strong growth in several key areas.

PayPal has transitioned from a company that's prioritizing user growth to a company that's prioritizing engagement. Early results are that this strategy might be paying off. Despite active accounts growing only 1% year over year in the first quarter of 2023, the number of transactions per active account increased by 13%.

The shift toward prioritizing engagement over user growth has also resulted in decreasing operating expenses, helping contribute to better profitability numbers. For example, in Q1 of 2023, PayPal's sales and marketing expenses represented 6.2% of revenue, down from 9.6% in Q1 of 2022.

2. The Trade Desk

Programmatic advertising company The Trade Desk (TTD 1.67%) has a simple business plan. The company's management believes the future of advertising is digital and that the most effective advertising is targeted. The Trade Desk allows advertising agencies and brands to pick from billions of opportunities a day to display their ads. 

Traditional advertising was one size fits all. Everyone watching primetime television in a particular market would see the same advertisements during the commercial breaks of their favorite shows. With the advent of streaming, ads can be targeted to specific users. This provides a higher return on investment for the advertisers who now have access to hundreds of data points about the effectiveness of their ads.

The Trade Desk's financial results demonstrate its leading position in this market. Dating back to its full-year 2016 results, The Trade Desk has never had year-over-year revenue growth dip below 26%. This double-digit revenue growth is expected to continue with Q2 revenue expected to grow by 20% over Q2 of 2022.

3. DigitalOcean

It's not easy to successfully compete against three of the largest companies in the world, but that's exactly what cloud infrastructure company DigitalOcean (DOCN 3.30%) has done. By providing inexpensive, transparent, easy-to-navigate cloud computing support for small and medium-sized businesses, DigitalOcean has found a niche and become a leader in its space.

Small and medium-sized businesses need cloud computing to operate but rarely have the employees or the capital to navigate the complicated world of cloud computing. DigitalOcean helps by providing that support, allowing the business to focus on its mission.

DigitalOcean has grown impressively in a short amount of time. In the first quarter of 2021 it had 85,000 customers who were spending $50 or more per month. As of Q1 of 2023, that number had jumped to 147,000, representing a 43% increase over the prior year. 

The growth in these larger, higher-spending customers is important. It's one thing to be the go-to provider for small and medium-sized businesses that have the need for cloud computing support. But to remain viable over the long term, DigitalOcean is going to need those businesses to stick around as they grow. The growth in larger customers suggests that DigitalOcean's customers continue to have their needs met as their businesses mature. 

Also important to note is that DigitalOcean is starting to see some economies of scale. In Q1 of 2021, capital expenditures represented 25% of revenue. That figure dropped to 15% in Q1 of 2023. Over that same time frame, the average revenue per customer increased by 49%.