I follow about 70 stocks, primarily in the technology sector. Several stand out as compelling buys, including three priced below $100 per share: Circle Internet Group (CRCL +0.64%), The Trade Desk (TTD +0.04%), and Netflix (NFLX 1.24%). Wall Street analysts generally anticipate substantial upside in all three stocks in the next year.
- Among 27 analysts, Circle Internet Group has a median target price of $118 per share. That implies 37% upside from its current share price of $86.
- Among 41 analysts, The Trade Desk has a median target price of $60 per share. That implies 62% upside from the current share price of $37.
- Among 46 analysts, Netflix has a median target price of $132 per share. That implies 40% upside from the current share price of $94.
Here's why I think these stocks are the best stocks (within my circle of coverage) to buy with $100 right now.
Image source: Getty Images.
1. Circle Internet Group
Circle is a fintech company that mints stablecoins, including dollar-denominated USDC. It also provides developer tools that let businesses build digital asset storage and payments into their applications. Importantly, while USDC is the second-largest stablecoin by market value, it is the largest one that complies with stringent regulations in the U.S. and Europe.
Stablecoins could reshape the global financial system by supporting faster and cheaper transactions. Indeed, stablecoin revenue is projected to increase at 54% annually through 2030. Circle is ideally positioned to benefit because its focus on regulatory compliance has made USDC the preferred stablecoin among financial institutions, according to JPMorgan Chase analysts.
Importantly, Circle currently makes most of its money through interest paid on reserve assets (i.e., collateral denominated in fiat currency to ensure stablecoins maintain their value). But the company earlier this year expanded into payments with the launch of the Circle Payments Network (CPN), which could disrupt traditional systems across use cases like employee payroll, supplier payments, and e-commerce purchases.
Circle is currently 67% below its high because investors got a carried away following its IPO earlier this year. But the current price is attractive. The stock trades at 8.1 times sales, a very reasonable valuation for a company whose revenue is projected to increase at 32% annually through 2027.
2. The Trade Desk
The Trade Desk operates the leading demand-side platform (DSP) for the open internet. A DSP is a type of ad tech software that lets clients plan, measure, and optimize campaigns across digital channels. The Trade Desk has a particularly strong market presence in retail media and connective TV (CTV) advertising due to its independent business model.
To elaborate, The Trade Desk does not own media content that might bias ad spending on its platform. That independence differentiates the company from larger competitors like Alphabet's Google, Meta Platforms, and Amazon, all of which have a clear incentive to steer media buyers toward advertising space on their own web properties.
The Trade Desk's independence eliminates that conflict of interest, so publishers are more likely to share data. For instance, the company sources data from many of the largest retailers, which creates measurement opportunities that are not available on other DSPs. Similarly, The Trade Desk's independence theoretically affords media buyers more transparency when purchasing CTV ads.
Consequently, Frost & Sullivan recently ranked The Trade Desk as the leading DSP based on its growth trajectory and innovation. The report highlighted cutting-edge omnichannel capabilities, sophisticated artificial intelligence features, and innovative identity solutions as key strengths. "The Trade Desk continues to be a reference point in the industry," the analysts wrote.
Importantly, The Trade Desk stock is down 71% from its high because the market is worried about competition with Amazon after it recently doubled-down on CTV advertising. But that creates an opportunity. Wall Street expects The Trade Desk's adjusted earnings to grow at 15% annually in the next two years. That makes the current valuation of 21 times earnings look fairly cheap.
NASDAQ: NFLX
Key Data Points
3. Netflix
Netflix is the most popular streaming service as measured subscribers due to its status as a first mover, as well as continuous innovation and investments in original content. Analytics firm Nielsen reports that, among the 10 streaming programs that currently top the charts in viewership, Netflix made six of them. The company also made six of the top 10 programs last year.
Additionally, as the streaming service with the most monthly active users, Netflix has access to more viewer data that can inform future content production decisions. That edge, coupled with tremendous brand authority and an unparalleled library of original content, makes it highly unlikely that the company will be dethroned any time soon.
Finally, from a financial perspective, Netflix has another advantage in that it does not own legacy assets that are gradually losing value as streaming replaces traditional television. In other words, Netflix can dedicate every dollar to growing its streaming business, whereas competitors like Walt Disney, Paramount, and Comcast have to spend money on outdated linear television.
Netflix stock is currently down 30% from its record high due to concerns about the price tag associated with its potential acquisition of Warner Bros. Discovery. But that overreaction creates an opportunity. Wall Street estimates Netflix's earnings will grow at 24% annually through over the next three years. That makes the current valuation of 39 times earnings look quite reasonable.
