Investing any amount of money, even with a modest sum like $100, in growth stocks is a hundred times better than leaving the money in a bank account. While $100 may not seem like a fortune, it’s the perfect starting point to embark on your investing journey, even if you don’t have that much experience.
This is because investing $100 in the stock market is an incredible opportunity to expand your financial knowledge and gain hands-on experience trading shares, as well as grow your wealth. Here are five growth stocks that won’t empty your wallet, as they’re all priced under $100, allowing you to grab a whole share of these promising businesses.
EYPT Stock
This stock is up by a staggering 798.74% over the past year, making it one of the best growth stocks, and it currently trades at $21.48. The company is EyePoint Pharmaceuticals (NASDAQ: EYPT), a clinical-stage biotech company with a market cap of $1.07 billion, and a focus on creating and selling treatments for serious eye diseases. Additionally, it has a proprietary technology that it leverages to deliver these treatments directly into the eye and keep them there for a long time.
In December of last year, the stock soared 200% after the company announced successful results from a trial of its new treatment for wet age-related macular degeneration, or wet-AMD, called EYP-1901. The study on this new treatment was extremely successful, as it achieved its primary endpoint, as well as key secondary endpoints, showing that EYP-1901 works as well as the current treatment available in the market, but requires fewer doses.
This is great news because it could make it easier and safer for patients to take care of their condition. Therefore, the company could have an absolute game-changer under development. If this new drug gets approved by the FDA, then it could earn the company billions, since it has good opportunities in three multi-billion dollar markets, and it could even become the standard of care in any of them. For example, the wet-AMD market will be worth $11 billion by the end of 2024, while the markets for other diseases EYP-1901 treats, like the NPDR market and the DME market, will be worth $7 billion and $4.06 billion respectively.
As for the company’s financials, the company is deriving revenues from the sale of YUTIQ, another treatment it developed and sold to a company called Alimera Sciences (NASDAQ: ALIM) in May of 2023 for $82.5 million, as well as low to mid-double-digit royalty on any future sales. This sale guarantees that cash will extend well into 2025, which should take care of the company’s cash needs until we see at least two pivotal trials of EYP-1901 for wet-AMD and NPDR through. Finally, Wall Street analysts are bullish on this stock, with a price target of $43.89 over the next 12 months, a massive upside of 104.33%.
ON Stock
ON Semiconductor Corporation’s (NASDAQ: ON) ON stock is down by 4% over the past 12 months, but it’s up by approximately 237.71% over the past five years. It currently trades at $74.87. This company, also known as Onsemi, is an American semiconductor supplier company, and has a market cap of $31.99 billion.
Onsemi showed exceptional growth in sales over the past few years, with its total revenues going from $5.2 billion in 2020 to $8.2 billion in 2023, and its profitability also increased over the same period, with the net income going from $234.2 million to $2.1 billion. But, despite this, Onsemi achieved Q4 revenue growth of -1% in 2023, and this was thanks to a broader weakness in its automotive and industrial market segments, which accounted for 80% of its 2023 revenue base. Still, long-term secular growth themes remain intact, making ON stock one of the best growth stocks. But, near-term cyclical challenges emerged in late 2023, particularly in the EV industry, and even the U.S. market leader in EVs, Tesla (NASDAQ: TSLA), is now forecasting significantly lower sales for EVs in 2024.
In response to this slowdown in the EV industry, Onsemi is planning to capitalize on the silicon carbide, or SiC market, which is a type of semiconductor that can be used in solar energy systems and data centers, as well as EVs. This market was valued at $3.30 billion in 2022 and is anticipated to grow at a CAGR of 11.7% from 2023 to 2030, which is really good for Onsemi as it has a 25% market share in that market, and the company’s management believes that it could grow at 2x the market growth in 2024.
The company also highlighted its confidence in maintaining a gross margin above the mid-40% floor, and Wall Street analysts are also bullish on this stock, setting an average price target of $88.86, and that’s an 18.69% upside from its current price. With this in mind, the current 3% dip with ON stock might provide a good buying opportunity, especially since the stock will rise again with the eventual recovery in the automotive market.
PLTR Stock
Palantir Technologies’ (NYSE: PLTR) PLTR stock is up by around 197.34% over the past year and currently trades at $23.49. Palantir Technologies is a $51.95 billion market cap company that builds and deploys software platforms that assist in counterterrorism investigations and operations. The company’s products include Gotham, Foundry, and Apollo, and it sells these products to both state and local governments, as well as private companies in the financial and healthcare industries. Thanks to the launch of its artificial intelligence platform, the company has been seeing exceptional growth, and this is because Palantir managed to differentiate itself from other big AI companies by offering its customers 5 days long bootcamps to try its AI products.
In the company’s earnings for Q4, Palantir achieved $608.5 million in revenues, which was an increase of 19.6% year-over-year, and also beat Wall Street analysts’ expectations by $5.55 million. At the same time, the company also had a fifth consecutive quarter of delivering a profit in Q4, as its net income during the period was $93.4 million. Going forward, Palantir will likely continue to generate impressive returns, due to the fact that the demand for its artificial intelligence platform is not slowing down anytime soon.
In fact, Palantir’s commercial revenues in the U.S. in Q4 aggressively increased by 70% year-over-year in large thanks to the scaling of the company’s artificial intelligence platform. The company also expects at least a 40% revenue growth rate for U.S. commercial revenues in 2024, thanks to the high demand for its artificial intelligence platform.
Another positive catalyst for Palantir is that artificial intelligence platforms are expected to be the second-largest niche within the AI software market, and that’s according to data provided by the International Data Corporation, which expects the artificial intelligence platforms market to grow by almost 36% a year. The AI platforms market was worth $14 billion in 2021 and recorded 37% growth that year. If it grows at an annual pace of 36% through 2027 as IDC forecasts, it could generate annual revenue of $88 billion after three years.
But, there’s one problem with Palantir, and it’s PLTR stock’s valuation. Many analysts think the stock is currently overvalued at $23.49, and Wall Street analysts have a price target on it of $20.02, which is a 14.77% downside. Therefore, the stock might drop to a fair valuation in the future, especially since the size of the U.S. commercial business is less than 25% of quarterly revenues, which means that the AI-related acceleration may not be enough to sustain the stock’s current valuation. Still, the company is growing at an aggressive rate and achieving massive profits, so it’s definitely a stock to hold for the long-term and one of the best growth stocks out there.
SHOP Stock
Shopify’s (NYSE: SHOP) SHOP stock is up by 77.19% over the past year and currently trades at $77.15. This e-commerce company has a market cap of $98.38 billion, which proved that it can compete alongside Amazon (NASDAQ: AMZN) and that it isn’t in danger of going anywhere. In fact, there are multiple long-term growth drivers surrounding SHOP stock.
The company is investing heavily into AI technologies to better its platform. For example, there’s Magic, which was released by Shopify in early 2023, and is a series of functions that use AI to understand and generate text for things like writing and editing blog posts, writing and editing product descriptions, suggesting replies to customers during conversations, and many other functions to help sellers on the platform. It also introduced Sidekick in August of 2023, which is a virtual AI assistant for sellers on the company’s platform, and acts like a personal advisor for the business.
Shopify also has a vast global presence, as it’s available in 175 countries, with more than 1.75 million merchants relying on it to sell products and services. This positions Shopify to benefit from strong economic conditions, or times when online shopping is high like the holidays season.
Shopify is also growing at a large pace, as it grew its Q4 revenue by 24% over the previous year’s comparable quarter to $2.1 billion, and this growth rate can actually be considered 30% if you exclude the logistics business that it sold to Flexport in early May of 2023. As for the opinion of Wall Street analysts, they’re bullish on SHOP stock, with a price target of $82.53 in the next 12 months, an upside of approximately 7%.
CRSP Stock
CRISPR Therapeutics’ (NASDAQ: CRSP) CRSP stock is up 62.40% over the past 12 months, and currently trades at $72.95. This is another biotech company, and it has a market cap of $5.85 billion, which could get a lot bigger in the future thanks to its first ever product approval, making it one of the top growth stocks. This product is Casgevy, or Exa-cel, a gene therapy treatment for sickle cell disease.
Being a gene therapy, Casgevy is naturally expensive and costs $2.2 million, and the company is expected to share any revenue from this treatment with its development partner Vertex Pharmaceuticals, which will get a 60% share of the drug’s profits, while CRISPR will get a 40% share. Despite its high price, Casgevy could bring billions in revenues to CRISPR, as there are more than 20 million patients suffering from sickle cell disease globally, and if just 1% of them buy the treatment, Casgevy will generate $400 billion in sales.
Aside from Casgevy, the company said that it expects other significant catalysts over the next 12 to 18 months, which will be driven by progress in different clinical trials and pipeline expansion efforts. The company is also expected to expand into other therapeutic areas that are away from more niche and costly treatments like Casgevy, and these include areas in oncology, cardiovascular diseases, and Type 1 diabetes.
As for the company’s financials, CRISPR Therapeutics recently saw a financing round of $280 million, and this solidified its balance sheet, allowing it to accelerate its auto-immune and gene editing programs, and this is extremely bullish for the company, even though it currently isn’t profitable. Wall Street analysts are bullish on CRSP stock, as they set an average price target of $88 over the next 12 months, which is an upside of 20.63%.
The Bottom Line
There are many great growth stocks that are under $100, or even under $50, that you can invest in for the long-term. We tried to give you five growth stocks that are some of the best, but you should also be wary of the market risks that can affect any investment, so do your own due diligence and research the stock extensively to be aware of the potential risks.
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