Got an extra $1,000 you know you won't be needing anytime soon, and would like to do something constructive with it in the meantime? That's easier said than done right now. Although stocks are seemingly back in bullish mode following a steep sell-off earlier this year, investors are also understandably cautious. The tariff war may or may not be over, but even if it is, lingering inflation is still chipping away at the global economy's health.
There are some stocks, however, that are too compelling to pass up now despite the uncertain economic backdrop. Either their underlying company's growth is too unstoppable, or their prices are too discounted, or both.
Here's a closer look at three such names, none of which are exactly high-profile players. That's somewhat the point, though. These lesser-known outfits may be able to sneak higher while more popular tickers struggle by virtue of being more obvious selling targets.
Image source: Getty Images.
Confluent fills the growing need for real-time data streaming solutions
Ever heard of Confluent (CFLT +0.00%)? With a market cap of less than $10 billion, it would be a bit surprising if you have. Yet there's a reasonably good chance you regularly rely on its tech without even realizing it.
Simply put, Confluent helps organizations optimize the streaming of digital data. That description in and of itself won't mean much to the average investor, but this might help explain the company's value: Dish Network's wireless 5G network provides a better (faster and more reliable) user experience by being optimized by Confluent's tech, which helps data senders and recipients alike. Citigroup's customers are also empowered by "always-on reliability and detailed insights" that wouldn't be available without Confluent's solutions. Carmakers BMW and Daimler also both utilize Confluent's data streaming tools, as does tire manufacturer Michelin, which connected its logistics arm with its inventory management tech to create a faster, real-time inventory management solution.
NASDAQ: CFLT
Key Data Points
Although the value of such tech is clear, that doesn't mean this stock has consistently thrived of late. Indeed, shares still linger at levels they fell back to during 2022's bear market following their 2021 rally. This is a hint that investors suspect more efficient real-time data streaming isn't always necessary.
Except, Confluent's top- and bottom-line growth has remained uninterrupted since shortly after its 2014 founding, and is expected to continue growing at least for the next few years. This growth, of course, reflects the growing need for better real-time data streaming solutions driven by the growing amount of digital data that never existed until now.
Data source: StockAnalysis.com. Chart by author.
The analyst community is on board, by the way. The vast majority of analysts currently rate this ticker a strong buy, and sport a consensus price target of $28.13 -- that's more than 20% above the stock's present price. That's not a bad way to start out a new position. The stock just needs one good nudge to get the ball rolling.
The thing is, you want to be in a position once that ball gets rolling.
Applied Digital specializes in AI data center development
Like Confluent, Applied Digital (APLD 2.70%) isn't a household name. Give it time, though, and you'll be benefiting from this organization's solutions soon enough.
Why's that? Applied Digital builds artificial intelligence (AI) data centers into existence from the ground up, the right way.
In its infancy, it wasn't a problem that needed solving -- AI was more experimental than a revenue-bearing product. That's changed, however. Artificial intelligence data centers are now everywhere, and consuming more electricity than the world planned on ever needing to supply them. Goldman Sachs predicts AI data centers' need for power is apt to grow to the tune of 165% between now and 2030, in fact.
Enter Applied Digital.
This company constructs the racks of interconnected processors and computer boards that eventually become a neural network. That understates all that Applied Digital does, though. This company actually designs and builds entire data center buildings with their unique power needs in mind. This includes preplanning for electricity consumption and even power production. For instance, the company is constructing several data centers in North Dakota where clean wind power can not only be produced in abundance, but can be used to cool always-hot AI platforms.
NASDAQ: APLD
Key Data Points
There is one not-so-small stumbling block. That is, while the company's growing its revenue at a lightning-fast pace, it's still losing money, and will likely remain in the red for at least a few more years.
It is making bottom-line progress though, which might be enough to keep its erratic long-term rally going for a long while. In this vein, industry research outfit Market.us expects the global AI data center business to grow at an average annualized pace of 27% through 2034, led by the U.S. market that Applied Digital already serves. That's a fantastic tailwind for this fast-growing company to catch.
AST SpaceMobile is building out satellite-based broadband connectivity
Finally, add AST SpaceMobile (ASTS 1.15%) to your list of the best stocks to buy with $1,000 -- or any other amount of money -- right now.
As the old cliché reminds, the only constant in life is change. That's true of most of life's aspects, but it's particularly true on the industrial and technological fronts, where technology often translates into more cost efficiency or more functionality, and therefore greater profitability.
Telecom is no exception to this dynamic. Once limited by a network of physical wires that were manually connected to make the desired phone call, most voice-based communications are now made using radio transmissions bouncing off the same towers that also turn your smartphone into a web-connected device. And this tech works impressively well for most people most of the time.
Its reliability and accessibility can still be improved, though. AST SpaceMobile is leading this charge, with the development of satellites capable of offering broadband connectivity that's currently being handled (but not always reliably) by cellphone towers. With this tech in place, anyone, anywhere in the world can rest easy knowing their mobile phone is never out of range.
It's still early days for the company's business, to be clear. As it stands right now, there are only five of its so-called BlueBird satellites in orbit, and these are more experimental in nature than commercial. And yes, like Applied Digital, AST is still losing money, and will likely continue doing so for some time.
Don't be surprised to see this stock start climbing again in the near future, though, shaking its way out of the rut it stumbled into after last year's short-lived recovery rally.
NASDAQ: ASTS
Key Data Points
The company intends to start launching more of these satellites beginning in June or July, with several launches expected at least once every other month through next year until several dozen BlueBirds are in orbit. Assuming this tech works as well as initial versions of it have, it should prove itself more than well enough, (metaphorically) launching AST's initial commercialization phase. This, of course, should provide a boost for the wobbly stock.
There's still risk here, to be sure. It's possible not many people will care for more reliable broadband connectivity, or be willing to pay what's sure to be a premium for it.
There's enough upside potential paired with this risk for risk-tolerant investors, however. The few analysts following this fairly small company expect last year's top line of nearly nothing to explode to nearly a profit-producing $1 billion by 2027, fueled by adoption solutions that some wireless carriers, like AT&T and Vodafone, have already expressed firm interest in. The majority of these few analysts also currently rate AST stock as a strong buy.
