Consider Adding These 3 Stocks Trading Under $100
One of the most attractive qualities of the stock market is that you don’t necessarily have to be a big spender in order to capitalize on the potential for long-term gains.
Quality companies are priced at all different levels, and investors that are willing to put in the required work to scope out appealing opportunities can build wealth over the years, regardless of the amount of capital with which they are investing.
With many of the most successful companies in the world trading at share prices well into the thousands, it helps to look back on a company like Amazon (NASDAQ:AMZN) and remember that it was a stock trading under $100 per share at one point.
Whether you are just getting started on your investing journey or you are an experienced trader looking to load up heavy on stocks priced at reasonable levels, focusing on stocks under $100 per share can really help you make the most out of every dollar you put to work.
There are plenty of great businesses to consider buying in January that won’t necessarily break the bank if you look to add exposure, so keep that in mind if you are interested in putting some capital to work.
Let’s take a look at 3 must-have stocks under $100 to buy in January.
1. Raytheon Technologies
The aerospace and defense sector has been off to a great start in 2022, and a stock like Raytheon Technologies (NYSE:RTX) could be cleared for takeoff in the coming months.
It’s a diversified company that offers exposure to both the commercial aerospace industry and defense market, which means it can successfully navigate potential downturns in either component of its business. While the airline industry is still on rocky footing following the global pandemic, any positive signs that air travel volumes are picking up again should be a positive catalyst for Raytheon stock given its exposure to commercial airline customers.
Investors should also anticipate long-term growth from Raytheon’s other business segment, as the United States government is likely going to continue spending big on improving its intelligence and defense capabilities thanks to bipartisan support for the National Defense Strategy.
Raytheon also recently boosted its dividend payout by 7% and reported 125% growth in EPS in Q3, additional signs that the company is heading in the right direction. The bottom line here is that Raytheon Technologies is a high-quality company in a strong sector, which is why it’s an interesting pick as the stock nears a breakout.
2. S&P Metals and Mining ETF
Owning ETFs like the SPDR® S&P Metals and Mining ETF (NYSE:XME) in your long-term portfolio can be a great way to go, as these securities can offer diversified exposure to specific sectors that are rallying due to news or specific macroeconomic factors.
With the way commodity prices have been rallying over the last few months and how demand for raw materials like copper, aluminum, and coal is expected to remain solid for the near term, adding shares of this ETF for 2022 could end up being a very wise decision.
The ETF seeks to provide exposure to the S&P Metals and Mining Select Industry Index, which includes sub-industries like Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel.
We know that inflation is going to be a persistent factor that moves markets this year, evident in the latest CPI report, which rose 7% year-over-year, the fastest increase since the year 1982. That’s why it makes sense to consider adding an ETF that could help to take advantage of rising commodity prices. Top holdings include quality names like Alcoa (NYSE:AA), Cleveland-Cliffs (NYSE:CLF), Newmont Goldcorp (NYSE:NEM), and the ETF is up around 6% to start the year, which makes it a great option to consider trading under a $100 price point.
3. Micron Technology
The tech sector has been feeble to start the year, yet semiconductor stock Micron Technology has been holding up quite well. This tells us that there is plenty of demand for shares and that higher prices could be on the horizon, particularly if tech stocks can stabilize.
Micron Technology (NASDAQ:MU) is a manufacturer of semiconductor memory products like DRAM and NAND flash memory, along with image sensors. These products play a critical role in some of the most exciting technologies today, including data centers, smartphones, video games, personal computers, and more, which means Micron should see steady demand for years to come.
The stock is trading near all-time highs following a strong Q1 earnings report which included revenue growth of 33% year-over-year to $7.7 billion. Micron’s management also provided a strong Q2 forecast even with the global supply chain constraints that are still occurring, which is another positive for investors to consider.
This is one tech stock that might surpass the $100 per share mark sooner rather than later, so consider adding shares if you’re interested in a semi stock trading at a reasonable valuation.