Got $5,000? Buy and hold these 3 stocks that are beating the market

Market downturns like the one we’re in right now can be very worrying for investors – especially those with less experience. More experienced investors will likely recall how the market has crashed in the past, only to bounce back and make new highs. You will also probably recall that bear markets tend to offer many excellent investment opportunities when the stocks of large companies come up for sale.

Here are three examples – three solid companies with very bright futures and stocks that have fallen in price. See if something catches your interest.

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Image source: Getty Images

1. PayPal

Cash may be king, but more and more people are making financial transactions digitally, and one of the leading companies in the “fintech“Arena is PayPal (PYPL -2.05%). How tall is a player? Well, consider that its market value was recently $85 billion – and that was after a Share price down 76% from its 52-week high.

PayPal had 426 million active consumer and merchant accounts at the end of 2021, when it employed nearly 31,000 people. In 2021, it processed a total of $1.25 trillion in payment transactions with an average of 40,000 transactions per minute. Better yet, the company is more than just the PayPal payment platform; The company also owns the popular Venmo app, not to mention Zettle, Xoom, Hyperwallet, Honey, and Paidy, among others. PayPal noted in its 2022 annual report that “today, more than 70% of top North American and European retailers, including more than 80% of top U.S. retailers, accept PayPal or Venmo at checkout.”

In the first quarter, PayPal saw total payment volume increase 13% (15% on a currency-neutral basis) and net revenue increase 7%. Also, 2.4 new active net accounts were added in the quarter. The quarter also ended with a fairly healthy balance sheet with more than $15 billion in cash and cash equivalents and investments and about $9 billion in debt.

2. Broadcom

Broadcom (AVGO -1.00%) You might not be too familiar with the name, but it’s a giant chipmaker with a current market value of nearly $200 billion. It is also the product of various mergers and acquisitions with companies such as LSI, Broadcom Corporation, Brocade, CA Technologies and Symantec.

Broadcom is already a diversified chipmaker with a range of offerings in the data center, networking, enterprise software, broadband, wireless, storage and industrial markets, among others. In addition, the company aims to expand into the hybrid cloud computing world, which includes multiple private and public cloud environments Acquisition of software specialists Vmware – Reportedly for more than $60 billion.

Broadcom is also a solid one Dividend Stock, with a payout recently yielding 3.3%. Even better, that dividend has been growing rapidly, increasing an average of 32% annually over the past five years. While shares of many tech-focused companies have fallen sharply, Broadcom’s stock recently fell only about 27% from its 52-week high — a relatively small drop. Obviously the company has much to offer investors.

3. Amazon.com

Amazon.com (AMZN -1.77%) is known to most people as an online marketplace – with a Prime membership service offering streaming videos, e-books, music, games and more. Amazon Web Services’ (AWS) cloud computing business is less well-known but growing rapidly — with AWS revenue up 37% year over year in the company’s first quarter and accounting for 16% of total revenue, up from 13% in the year Previous year . And of course, it has a lot more to offer, such as the advertising business. Rising companies include Amazon Care’s virtual health services and Project Kuiper – an initiative to improve global broadband access via satellite. Amazon also hosts devices and services like Alexa, Echo, Fire TV, Fire tablets, Kindle, Ring, Eero, and more.

With shares recently down 37% from their 52-week high, Amazon.com’s valuation is cheaper than it has been in recent years. The current price-to-earnings (P/E) ratio of 59 might seem a bit steep, but it’s a little less than half the stock’s five-year moving average of 120. If you’ve always wanted to be a part owner of Amazon, this is it a promising opportunity.

These are just three solid companies with plenty of growth potential — each selling at a far lower price than it’s been in a while. Take a closer look at all of them and consider them for your portfolio – or go hunting for yourself as there are many others at attractive prices great growth stocks out there. Whether you have $5,000, $500, or $50,000 to spare, there are many great investment opportunities out there.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Selena Maranjian has positions in Amazon and PayPal Holdings. The Motley Fool has positions in and recommends Amazon and PayPal Holdings. The Motley Fool recommends Broadcom and VMware. The Motley Fool has one confidentiality policy.

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