Buy Low Spotlight: 7/25/24
A bull market is fantastic for the economy. But it can be intimidating for newer investors. Where should you put your money when it seems like stock prices are leaping out of reach at every turn? Fortunately, there are still options with low barriers to entry and excellent potential for future growth. If you have a spare $20, consider one of these three stocks with a lot of room to grow.
AT&T (NYSE: T)
Telecom giant AT&T just released its second quarter report, and the results were better than expected. The company is rapidly adding wireless subscribers while maintaining a very low churn rate. Its fiber optic internet is also doing quite well. Equipment revenue missed expectations, but overall the company is in great shape. After bottoming out nearly a year ago, AT&T stock has been consistently rising, and this latest report gave it another bump. You can still buy in for less than $20, but that window is closing quickly, so now would be the time to do so.
Fastly (NYSE: FSLY)
Edge computing is a new trend that moves data and software from centralized cloud repositories to data centers nearer the user. This reduces latency and increases performance. Fastly is currently a leader in edge computing services, despite its recent stock crash. Share prices are down s57% this year thanks to weaker than anticipated sales growth and higher adjusted losses.
However, the company’s key indicators all point in the right direction. Edge computing is growing rapidly overall. Fastly’s total customer count is rising. Importantly, its existing customers are spending between 13% and 19% more YOY. Its CEO understands how to reduce costs without impacting operations, and its operating cash flow is positive. It could be worth the gamble to buy now and wait for things to turn around.
SiriusXM (NASDAQ: SIRI)
Sirius XM has had some trouble recently, with its share prices down about 36% this year. It saw a small decline in subscriptions during the first quarter which, coupled with concerns about the advertising industry and the economy overall, has spooked Wall Street. But things actually look great for the company moving forward.
SiriusXM has a legal monopoly, as it’s the only licensed satellite radio operator in the United States. In addition, unlike traditional radio, most of SiriusXM’s money comes from subscriptions rather than ads. Since consumers are less likely to cancel subscriptions during economic turbulence than businesses are to cut back on advertising, this is a huge advantage. Trading at less than 11 times forward earnings, SiriusXM is a clear buy-the-dip opportunity.
Lisa Fritscher does not have positions in any of the companies mentioned in this article. Stocks.News has positions in AT&T and SiriusXM.