Got $1,000? Here are 3 buyable stocks that can go up

The stock market does not look very exciting for investors these days. The S&P 500 is still 17% lower than it was when the year began despite rising from the year’s lows.

Investing today requires some confidence and long-term expectations. One bear market investing strategy is to find dirty cheap stocks backed by companies that have a lot of potential. If you have $1,000 available to invest after you pay off debt and build up an emergency fund, you can find some great deals today.

Online global electronic (NASDAQ: GLBE)And the group spin (NYSE: RVLV)And the Flooring and decoration collectibles (NYSE: FND) They look like strong competitors for stocks that can increase your money strongly.

Different kind of e-commerce stocks

Global-e Online might be the best e-commerce stock you’ve never heard of before. It markets cross-border commerce solutions to e-commerce retailers focused on payments and shipping, and it’s growing like a weed.

Even in tough times, like now, it has an edge over other e-commerce companies because of its business-to-business model. E-commerce retailers are frantically trying to maintain and increase sales amidst a hostile market environment, and Global-e services help make that happen. Businesses can integrate Global-e technology into their websites to easily present their products in over 200 countries and 100 currencies, enabling access to millions of new customers.

Global-e has managed to add many high-profile clients to its client list, including big names like Walt Disney And the Mattel In addition to extensive deals with the powerful European fashion company LVMH. Also integrates with Shopify (NYSE: Store) stores, and Shopify is a big investor in the company. These are huge growth levers for Global-e as it garners customers and expands services to others.

Global-e again showed strong growth in the third quarter, reporting sales of $105.6 million, up 79% from last year. Adjusted EBITDA of $12.5 million was 62% higher. However, the company’s net loss widened from $28.5 million to $64.6 million. Revenue easily beat Wall Street expectations, but the loss per share of $0.41 came in much lower than the expected $0.30.

Global-e stock fell after the report, and is now down 69% this year. The good news is that it is a great opportunity to buy stocks.

The losses are due to a combination of factors: depreciation of collateral related to the investment from Shopify, expenses related to Global-e’s acquisition of Borderfree, and increases in other expenses related to the company’s development. With Borderfree firmly integrated into Global-e and with Shopify’s warranties now fully amortized, the company should see higher sales and profitability as it scales.

With new customers, and those customers who benefit from their packages in the form of higher sales, Global-e’s growth prospects look compelling.

Not your typical fashion company

If you’re not a millennial or Gen Z shopper, you may not have heard of the Revolve Group. But don’t let that stop you from buying its shares.

Revolve operates an online presence targeting young, tech-savvy clients. It leverages social media influencers to amplify its products, including celebrities with large followings. Artificial intelligence plays a major role in all of its operations, and since it is available entirely online, the retailer can easily swap and take out products if they resonate with their customer base or not.

This typically results in high full-price sales and strong profitability, and the company has been posting strong sales growth for a long time. However, this has changed in the compact economy.

Sales in the third quarter were up 10% year-over-year, which is a slowdown from the exponential growth last year. Profits decreased from $16.7 million to $12 million. However, on a brighter note, Revolve saw a 34% year-over-year increase in active customers and a 16% increase in average order value. And in a sign of effective cash management, free cash flow increased by more than 500% to $8.6 million.

Revolve aligns with its core customer base, and these shoppers remain loyal even under pressure. It has the technology to stay current, and a distinctive model that drives growth and profitability. In addition, it is a founder-led company, and management invests in model enhancement, expansion into new product areas, and increased engagement.

Circulation stock is down 54% in 2022, and shares trade for 25 times after 12 months of earnings. Considering the many growth factors here, as well as the more affordable stock, Revolve stock has the potential to be a high gainer.

Buffett-approved stock with potential for growth

Floor & Decor is a modern addition to the buffet Berkshire Hathaway portfolio, and it’s not hard to see why this furniture company is so attractive. It’s a warehouse retailer for all things flooring, and it’s created a niche that customers find compelling.

This has led to high growth. In the third quarter, revenue increased 25% year-over-year, including a 12% increase in comparable-store (comps) sales. It even managed a 3% increase in earnings per share (EPS) to $0.71.

Management sees an opportunity to reach a total of 500 stores over the next 8 to 10 years, up from an expected 191 stores at the end of 2022. Given the popularity of the chain and the number of existing convenience stores, as well as growing businesses, it is easy to envision this becoming a reality. Revenue and earnings should rise accordingly, and the share price should follow.

Floor & Decor stock fell after its third-quarter earnings report as management cut guidance for the full year. Third-quarter EPS easily beat analyst expectations, as sales came in as expected, but the downward guidance came in below what analysts had expected and indicated a slowdown in the fourth quarter.

The stock is down 44% this year, and the stock is trading at less than 30 times its 12-month earnings. But with so much growth potential, and being profitable to boot, this company should reward investors many times over.

10 stocks we like better than Global-e Online Ltd.
When our award-winning analyst team has stock advice, it can pay to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Stock Advisor, the market tripled. *

They just revealed what they think are the ten best stocks investors can buy right now… and Global-e Online Ltd. wasn’t. One of them! That’s right — they think these 10 stocks are the best buys.

See the ten stocks

*Stock Advisor returns as of November 7, 2022

Jennifer Sybil holds positions at Global-e Online Ltd. And Walt Disney. The Motley Fool has positions at Berkshire Hathaway (B) and Global-e Online Ltd. and Revolve Group Inc., Shopify, and Walt Disney. The Motley Fool recommends the following options: Long January 2023 calls of $1,140 on Shopify, Long January 2023 calls of $200 on Berkshire Hathaway (B shares), Long January 2024 calls of $145 on Walt Disney, Short January 2023 calls $1,160 value on Shopify, January 2023 short $200 put on Berkshire Hathaway (B shares), January 2023 $265 short call on Berkshire Hathaway (B shares), and January 2024 $155 short call on Walt Disney. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

Leave a Reply