The best shares under € 100

Morgan Stanley (NYSE: MS)

Morgan Stanley is a multinational finance company and investment bank. Morgan Stanley has recovered exceptionally well since the outbreak of the COVID-19 pandemic, and the stock price has fully recovered.

Morgan Stanley has maintained a positive earnings trend for the last 4 years, even during the pandemic. The company received a “buy” or “strong buy” rating from 16 out of 27 investment advisers, according to its Yahoo Finance profile.

Upwork (NASDAQ: UPWK)

Upwork is a freelance platform that connects entrepreneurs with artists, writers, programmers and other external gigworkers. Upwork’s stock exploded after the 2020 lockdown and has made solid progress since October 2020. As more companies expand their work from home policies, Upwork may expand even more in the future.

HUYA (NYSE: HUYA)

Video game stocks have been another growing sector since the outbreak of the COVID-19 pandemic. Huya is a Chinese company that offers its users a platform to stream and watch video games.

The company recently completed a merger with competitor DouYa, further strengthening its position as the country’s leading provider of game streaming. With a stable profit and a new partnership that will help reduce internal costs, Huya is well positioned to conquer even more of the growing Chinese eSports market.

Booz Allen Hamilton (NYSE: BAH)

Booz Allen Hamilton Holdings Company is a management and consulting firm that provides services to the U.S. Department of Defense. The company has a long history of stable stock price increases as well as solid EPS readings.

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Booz Allen’s earnings performance shows that the company has had a consistent annual earnings increase since 2017. It also provides an attractive and stable dividend of 1.44%.

eBay (NASDAQ: EBAY)

As the original e-commerce site, eBay occupies a leading position as more and more customers order online. eBay shares have experienced steady and stable growth since the stock market crash in March 2020.

eBay’s consumer-facing model seems to fill a gap in the online marketplace for collectors and casual buyers. eBay also recently received a major cash injection from the sale of StubHub, an online platform that helps buyers find tickets for concerts and events.

Summary: Stocks under $ 100

When most people think of investing in the stock market, they envision multi-million dollar companies like Amazon.com and Apple. However, you do not have to have thousands of dollars in the bank to start investing. There are a number of stocks under $ 100 that have great potential for growth and appreciation.

When you buy a stock, you are buying a small stake in a listed company. Companies offer shares to raise capital for upcoming projects, pay off debt or expand into a new market.

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Most companies start selling stocks with an “initial public offering” or “IPO” for short. Following an IPO, a company’s shares can be bought and sold by investors every day the stock market is open. Many investors hold shares for years.

There are 2 ways you can earn a return when you buy stocks:

  • The stock rises in value: The most important way for investors to earn a return is to hold on to their stocks until they rise in value. While it is quite possible that your investment will decline in value, the stock market has historically risen in value by an average of 7% to 8% annually, accounting for inflation.
  • The share pays dividends: A dividend is a small portion of a company’s earnings that is paid to investors in return for owning shares. While not all companies pay dividends, many do so to encourage investors to buy and hold their shares.

As the title suggests, a stock below € 100 is a stock with a price per share. share of less than € 100. Companies that issue shares below € 100 are typically smaller companies compared to most large companies.

Properties you need to be aware of in stock under € 100

While there is no guarantee that you will be able to distinguish winners from losers, there are a few important qualities you need to look for when investing in the stock market. Look for these properties before buying shares for less than € 100:

  • Trends in growth: Listed companies are required to report their earnings and profits on a quarterly basis. Before investing in a stock, it is a good idea to take a look at the company’s earnings over time. When a company’s earnings seem to grow every quarter (even by a small margin), it’s a good sign that the company is doing something right.
  • Debt in relation to income: Almost all companies of any size have some form of debt. When comparing companies, it is important that the company you are buying has a debt that is reasonable in terms of its earnings. You can calculate a company’s debt ratio by dividing the company’s total liabilities by its total equity.

What is a good debt in relation to income? The answer may vary depending on the industry you are investing in. The construction industry, for example, is highly dependent on debt financing, which typically means a higher debt relative to income. Compare the leverage of the company you are investing in with some peers in its industry to get a better sense of the company’s financial position.

  • Dividend history and dividend: Very few companies have to pay dividends to their shareholders. So when a company pays dividends, it can be an indicator of financial health – especially if the company has consistently paid its dividends year after year.

Be wary of high-yield companies. Dividend dividends are calculated by dividing the annual dividend paid by the company by the current price of a company’s share. Companies that increase their dividends are often desperate for investors or are heading for future financial problems because they are not investing enough money to sustain and grow.

In general, you should be reluctant to invest in a company with a dividend above 14%. This dividend level is typically unsustainable in the long run, and this may indicate that the company may have to cut dividends in the near future if the share price falls.

  • Future plans and strengths: The stock market is a volatile entity and any business will fall in value sooner or later. What matters is the company’s long – term plans and forecasts. Take a look at the history of each company you want to invest in and consider long-term trends in stock price and earnings.

Get started with investing

As you can see, investing is not just for people with millions of dollars to spend – there are plenty of amazing high-growth companies that trade for less than $ 100 per dollar. shares. Even large investors and investment companies often invest part of their capital in smaller companies.

If you want to invest in a larger company with a large market value, you should choose a broker that allows you to buy fractional shares. These brokers allow you to invest in euros instead of stocks – which means that if you only have 10 euros left, you can still buy a fraction of an Apple, Amazon or Facebook stock.

This post first appeared on Benzinga:

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