Investing $5,000 at the moment? Consider these Three Growth Stock Bargains.
Investing $5,000 at the moment? Consider these Three Growth Stock Bargains.
Putting $5,000 into a growing stock can be a wise move, as it could potentially lead to substantial long-term returns. If the stock increases in value by 10% per year, it would take approximately seven years for your investment to double.
Instead of risking small amounts, a $5,000 investment allows you to have a substantial stake in the market, potentially earning a significant return if you pick the right stock. This larger investment also encourages careful selection of stocks to add to your portfolio.
Three stocks that could be worth considering for a $5,000 investment are Pfizer (PFE 0.42%), ExxonMobil (XOM 1.71%), and Carnival Corp. (CCL -0.52%). Here's why these could be smart options for growth investors.
1. Pfizer
Although Pfizer experienced a significant decline in sales last year, due to a drop in revenue from COVID-19 vaccines and treatments, the company is still growing. Pfizer has been investing in its own drug development and expanding through acquisitions, which has made its business more diverse and less dependent on any single product.
A potential growth opportunity for Pfizer is in the weight loss medication market. While the company may be one of the best GLP-1 plays right now, investing $5,000 in Pfizer could yield significant returns if its GLP-1 weight loss pill, danuglipron, receives regulatory approval. Pfizer's work on danuglipron has shown progress in clinical trials, and management is optimistic about its potential approval by regulators. If successful, danuglipron could be a significant growth catalyst for the company.
Although revenue may not be immediately generated, an investment in Pfizer could provide a safer way to gain exposure to the highly competitive GLP-1 market, which could be worth more than $100 billion. Pfizer is a diversified business with a focus on weight loss, oncology, and various other healthcare sectors.
The stock is currently trading down 10% year to date and near its 52-week low. With a forward P/E multiple of less than 9, the stock could be an excellent buy opportunity.
2. ExxonMobil
ExxonMobil is another potentially undervalued growth stock to consider. Despite some bearish sentiment towards the future of oil, Exxon is a reliable energy source that consumers will continue to rely on. In July, Exxon completed an acquisition of Pioneer Natural Resources, which significantly expanded its footprint in the highly desirable Permian basin.
While there may be volatility in earnings due to oil prices, ExxonMobil's larger size and improved efficiency can enable the company to generate substantial profits for many years to come. Over the past three years, Exxon has reported total profits of around $115 billion.
The stock is currently trading at 13 times next year's estimated earnings, which could make it a bargain buy for the long term.
3. Carnival Corp.
Carnival Corp., a cruise ship operator, has experienced significant growth in recent quarters. The company continues to post record numbers and has increased its guidance accordingly. Revenue for the third quarter, which ended on August 31, was up 15% to $7.9 billion, and net income was up 62% year over year to $1.7 billion.
Despite concerns about slowing travel trends, Carnival's business remains strong and benefits from customers booking in advance. This gives investors confidence that the company's ships will be full and generate strong earnings in the future. Carnival has reported that not only is 2025 looking promising, but 2026 also has a positive start.
Carnival's stock has surged more than 40% this year. However, with a forward P/E multiple of just 15, it remains an inexpensive buy considering the company's strong performance.
After making a careful selection, investing $5,000 in Pfizer could lead to significant returns if its GLP-1 weight loss pill receives regulatory approval. This investment strategy follows the potential growth opportunity in Pfizer's drug development and diversification, which could make a substantial impact on its sales and profitability.
Investing in ExxonMobil could be a wise choice due to its status as a reliable energy source and its acquisition of Pioneer Natural Resources, which expanded its footprint in the Permian basin. Despite some volatility in oil prices, ExxonMobil's larger size and improved efficiency can ensure long-term substantial profits for investors.