HomeMarket NewsThe 3 Best Stocks Under $1000 to Buy Now: May 2024

The 3 Best Stocks Under $1000 to Buy Now: May 2024

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Several investors like to cash out when stocks hit 52-week highs, but I have always held on to such stocks, and the patience has paid off. Well-established industry giants can keep moving higher, and with the way they have built a business, only the sky is the limit. If you are embarking on your journey as a stock investor with $1,000 and are looking for top stocks under $1000, I will help you pick the best three.

Not all of them are cheap, but they will grow your money. The economy is improving, summer is here, and inflation is cooling. This could mean higher consumer spending and a stock market rally. Nasdaq and S&P 500 are already hitting new highs, and this rally could take these three stocks higher. Here are the top stocks under $1000 to buy and hold. 

Top Stocks Under $1000: Alphabet (GOOG, GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones. The Google stock split is happening today.

Source: IgorGolovniov / Shutterstock.com

One of the best stocks to buy under $1,000 is Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). A global giant, Alphabet has become a significant part of our lives. Several mutual funds and ETFs hold the stock, and it can help you retire rich. trading at $176, the stock is up 26% year-to-date and 41% in the past 12 months. 

The company has the potential to keep growing under any market condition. It makes the maximum revenue from online search and advertising. However, Alphabet is not dependent on search to survive, it has a diversified business that ensures consistent revenue from different segments including Google Cloud, a smartphone, and YouTube. 

Alphabet is investing in artificial intelligence (AI), and it made $9.6 billion in revenue from Google Cloud in the recent quarter. Google Search is currently a leader in the industry, and no company has been able to come close to its domination. This is also a segment that the company isn’t monetizing, and it could make significant revenue if it starts to show ads in the search engine. 

Its Gemini 1.5 Pro has garnered a lot of interest and it could compete with ChatGPT. I think Alphabet will remain relevant for years to come. The stock looks undervalued to me and is a long-term buy and hold. 

Microsoft (MSFT)

the Microsoft (MSFT) logo displayed on smartphone which is laying on top of a keyboard. symbolizes MSFT stock and blue-chip stocks

Source: rafapress / Shutterstock.com

Moving closer to $500, Microsoft (NASDAQ:MSFT)  is exchanging hands for $430 today, up 15% YTD and 29% in the past 12 months. One of the best tech stocks to own, Microsoft will never disappoint. A lot is working in favor of the company, and its timely investments in OpenAI have also started to pay off.

The company has integrated AI into several products and services and this integration has helped improve the user experience. If you can buy only one stock today, buy Microsoft and hold for a decade. The company makes its own AI chip known as Maia and has a huge cloud computing market.

Azure is its fastest-growing segment which reported a 31% jump in revenue in the recent quarter. Its total revenue came in at $61.86, up 17% YOY, led by cloud. The company is ideally positioned to benefit from the AI hype and even if you do not believe that AI will continue to dominate the sector, you must remember that Microsoft has a diversified umbrella of products and is a leader in innovation. This legacy company will never be irrelevant. 

The company pays a modest dividend of 0.70% but it has steadily grown over the years. I think Microsoft has a lot of room to grow and it could be one of the best under $1,000 stocks to own.

Netflix (NFLX)

Netflix (NFLX) app open on a phone screen

Source: XanderSt / Shutterstock.com

What began as a DVD rental business has taken on television today. Netflix (NASDAQ:NFLX) has brought streaming to the mainstream, and this is where it is going to stay. It has had a solid journey over the past two decades and has become the go-to for entertainment after the pandemic. NFLX is one of the top stocks under $1000 to own right now.

trading at $646 today, the stock is up 38% YTD and 64% in the past 12 months. The company has also integrated AI into its service to enhance user experience. It uses AI recommendations to display shows based on a viewer’s history and interest. 

For the first quarter, the company reported a revenue of $9.37 billion and an EPS of $5.28. It ended the quarter with 269.6 million subscribers, and the management has decided that it will not be reporting subscriber numbers going forward. This didn’t sit well with the investors and it led to a temporary dip in the stock. 

However, if you look at the bigger picture, Netflix looks in an ideal position to continue the upward rally. While the stock is almost at the 52-week high, it could keep moving upward. If you wait, you could be waiting forever. 

No competitor has been able to come close to the success and the market share that Netflix has achieved so far. I do not think Netflix is going to give its crown to anyone. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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