3 Top Growth Stocks to Buy for Less Than $100 | The Motley Fool (2024)

Investing in growth stocks can be an easy way to increase your portfolio's value over time. While dividend stocks might seem safer and can offer recurring income, stocks focused on growth can generate more significant returns in the long run.

And if you're looking for promising growth stocks to buy for less than $100, there are many options to consider, including Walmart (WMT 1.18%), Starbucks (SBUX -0.71%), and Shopify (SHOP 1.60%). These three stocks can make the most of any investment. Whether you're just putting in $100 or plan to build up your position over time, they can be great places to invest, now and in the future.

1. Walmart

Walmart's business has evolved significantly over the years. From retail to grocery to now also going after Amazon for online shoppers, this already large company is still looking for ways to get even bigger. It also has a pending acquisition of TV maker Vizio that could enhance its advertising business.

All in all, Walmart is much more than just a retail stock. The company is always on the hunt for ways to become more diverse. And while the plans don't always pan out (like its venture into healthcare), it isn't afraid to try new things, which is why growth investors will love it as a long-term holding.

Over the trailing 12 months, the company has generated $18.9 billion in profit on revenue totaling $657.3 billion. While those make for some light profit margins of less than 3%, the low-cost leader hasn't struggled with earnings, posting a profit of at least $11 billion in each of its last four fiscal years (its fiscal year ends in January).

Trading at around $70, one full share can easily be bought with $100. And with so many growth opportunities still out there for the business, there's plenty of incentive for investors to put much more money into the stock.

2. Starbucks

Starbucks has been struggling of late with a growth rate that has been underwhelming. There are concerns that coffee drinkers are switching to cheaper options amid inflation.

But I'm not worried about the business for a couple of reasons. The first is that while the economy might be putting pressure on consumers these days, it will recover. And as there's more room in consumer budgets, it'll be easier to justify spending a bit more for a cup of Starbucks, especially among its loyal customer base.

Secondly, the company is also looking at cutting costs by $3 billion over the next few years as it strives for greater efficiency in its stores, which could allow it to be more competitive on price. At the same time, the business is still looking to add 17,000 stores by 2030.

At 11%, Starbucks generates far better profit margins than Walmart. And by focusing on efficiency, it can pad its earnings significantly without having to grow too aggressively. But with a plan in place to grow its business and drive costs down, this can be a potentially undervalued stock to buy right now.

Trading at close to $76, the stock is still near its 52-week low of $71.55. And with an attractive price-to-earnings multiple of just 21, now can be a great time to add the stock to your portfolio.

3. Shopify

E-commerce stock Shopify is the cheapest one on this list, with a price tag around $63. After a boom in pandemic-fueled spending a few years ago, the stock has given back many of the gains it achieved during that period.

But the business still looks to be in good shape, and as the economy improves, it could be in a prime position to benefit when consumers spend more money online.

The company has shifted away from logistics, and it has reached an agreement allowing Shopify merchants to take advantage of Amazon's vast fulfillment network, which can help improve the company's prospects for long-term profitability. It also recently reached a deal with big-box retailer Targetthat will make it easier for shoppers to discover Shopify merchants. And select merchants will even have their products available in Target stores.

In just three years, Shopify's business has expanded significantly, with sales growing from $2.9 billion in 2020 to more than $7 billion this past year. And with many more growth opportunities still out there thanks to its recent deals, this can be a good stock to hold for the long haul.