Even with a stock market near its all-time highs, there are still fantastic buying opportunities if you know where to look.
Coincidentally, you don't need to look too hard. There are some dominant market leaders in growing industries that happen to be trading at compelling valuations right now. Buying these three growth stocks now could pay off handsomely as they continue to flourish.
The best part is you can buy a share of each stock for less than $1,000 in total. Dive in below.
Image source: Netflix.
1. Netflix
Shares of streaming leader Netflix (NFLX +0.38%) have been trading down for months, especially following news that it plans to acquire Warner Bros. Studios, HBO, and the HBO Max streaming service from the Warner Bros. Discovery conglomerate in an epic $82.7 billion blockbuster transaction. If the all-cash deal closes, it would drain Netflix's cash position and pile tens of billions of dollars in debt onto its balance sheet.
NASDAQ: NFLX
Key Data Points
That's a fair concern, but long-term investors could see Netflix build arguably the world's deepest content portfolio. It could fuel Netflix's growth for years as the company leverages it to monetize its global subscriber base of 325 million, which is still growing, by the way. The stock's decline has dragged its valuation down to about 31 times trailing 12-month earnings, its lowest since early 2023.
2. Taiwan Semiconductor Manufacturing
It doesn't get as much publicity as Nvidia does, but Taiwan Semiconductor Manufacturing (TSM +0.53%), or TSMC for short, is the company that powers the artificial intelligence (AI) boom. It's the world's largest chip foundry, meaning it manufactures nearly all the chips that Nvidia and others design and sell for AI and just about every technological product or service out there.
NYSE: TSM
Key Data Points
When I say leading, I mean it. TSMC controls about 72% of the global market. TSMC's stock continues to rise, but it's not keeping up with the company's stellar business performance. Shares trade at roughly 24 times forward earnings estimates, a jaw-dropping bargain for a company that analysts estimate will grow by 25% annually over the next three to five years.
3. Uber Technologies
Anyone familiar with ride-sharing should know Uber Technologies (UBER +0.88%). It dominates about three-quarters of the U.S. ride-sharing market and also operates globally. The market isn't sure what to make of Uber, which some fear is vulnerable to disruption from autonomous ride services, such as Alphabet's Waymo or Tesla's Robotaxi.
NYSE: UBER
Key Data Points
Fortunately, Uber is developing self-driving technology in a partnership with Nvidia, with plans to deploy 100,000 autonomous vehicles over the coming years.
In the meantime, the stock trades at 22 times earnings estimates, and analysts are calling for nearly 22% annualized long-term growth. Uber's stock could be a tremendous winner moving forward, as long as it can defend its business against autonomous competitors.
