4 No-Hassle Stocks to Buy Right Now for Under $100

With the Nasdaq Compound Still firmly in a bear market — down about 26% in the last six months — it’s more critical than ever for investors to maintain the dollar cost average in high-quality businesses at discounted prices.

While there’s nothing certain about stocks, the four companies we’ll be looking at today have clear megatrends working in their favor and holding leading positions in their niches. All trading is below $100 and is down 35% to 70% this year – and indications point to a long-term rebound.

^ IXIC data by YCharts

1.Paypal

While Statista predicts more than 60% growth in global mobile wallet transaction volume by 2025, PayPal Credits (PYPL -0.42%) looks set to continue profiting from its growing base of 429 million active accounts. However, due to decelerating sales growth rates, in part due to the end of its partnership with eBay — Shares have fallen more than 70% from their 52-week highs.

Posting 15% sales growth in the first quarter, excluding last year’s eBay sales, and a free cash flow (FCF) decline of 32%, year-over-year, PayPal showed stable but mixed results. A bright spot in the report was the company’s continued growth in active accounts and customer engagement, which grew 9% and 11% respectively for the year.

Growth in PayPal's active accounts and customer engagement in Q1 2022 of 9% and 11%, respectively.

Image source: PayPal Q1 2022 revenue report.

PayPal’s rapidly expanding value proposition to its users is driving this growing engagement among its growing customer base. Offering services such as Happy Return reverse logistics, buy it now, pay later options, crypto trading, and even buy deals with Honey, this vast ecosystem has created strong customer loyalty that continues to show through in these growth figures.

Guiding free cash flow generation of over $5 billion in 2022, PayPal would trade at around 27 times FCF, even after accounting for $1.4 billion in stock-based compensation, making it a top notch company at a fair price, under $100.

2. Unity Software

Create and help exploit interactive 3D content in real time, Unit software (U -0.20%) is well known for its leading position in providing tools to game developers. However, investors should also take note of its burgeoning business of creating digital twins (virtual representations of physical objects).

This secondary line of business for Unity saw 34 new deals in the first quarter of 2022, each worth more than $100,000, a figure that grew 126% year-over-year. While market analyst firm Grand View Research expects the global digital twin industry to grow at nearly 40% per year through 2030, that growth is only expected to begin.

Thanks in part to growth in this line of business, Unity reported 36% year-over-year revenue growth for the first quarter, but saw its net loss per share jump by more than 50%.

Despite the company’s promising growth outlook, mounting losses and slowing sales growth led to an 80% drop in the share price from all-time highs and its lowest price-to-value ratio. sales (P/S) since its IPO.

Table of U PS ratios

U PS Ratio data by YCharts

Although this P/S ratio is still twice that of the median technology stock in the S&P500 index, Unity’s deal with The Orlando Economic Partnership to build a digital twin for the 800-square-mile region may be a glimpse of the company’s long-term optionality potential.

3.Roku

With TechCrunch predicting 2020 connected television (CTV) ad spend will double by the end of 2022, it’s not shocking to hear from this streaming TV juggernaut netflix plans to launch an ad-supported pricing tier soon. In view of these intentions, rumors circulating that Netflix was considering an acquisition of Roku (ROKU 1.51%) and its advertising platform make sense in theory – but that may be difficult to pull off due to the latter’s reasonably large market cap of $12 billion.

Roku’s advertising partnerships with AMC Networks and World Paramount and its content distribution agreements with YouTube and disney — all of which are competitors of Netflix.

Posting 39% year-over-year sales growth for the first quarter of 2022 in its core platform segment, Roku showed that its trio of advertising operations, The Roku Channel, and distribution of content on its operating system all seem more vital than ever.

ROKU Earnings Chart (TTM)

ROKU Revenue Data (TTM) by YCharts

As returning advertisers increase their spend by more than 50% year-over-year with Roku, expect the business to continue to thrive amid the continued shift of advertising from linear TV to connected television.

4. Match Group

While Statista predicts the online dating industry will only grow 6% per year through 2026, Matching groupit is (MTCH 2.67%) its leadership position and huge free cash flow margins of 30% make it an easy stock to buy under $100.

With its number of paying members and revenue per payer up 13% and 6%, respectively, in the first quarter of 2022, Match Group’s overall revenue jumped 20% over the same period.

Delivering promising growth since the completion of its spin-off IAC/InterActiveCorp (IAC 2.23%) in 2020, Match Group hosts 16 million paid accounts and the world’s most downloaded dating app, Tinder.

MTCH (TTM) Earnings Chart

MTCH Earnings Data (TTM) by YCharts

Highlighting its leadership position, 60% of American couples who met on a dating app did so on a Match Group brand. Thanks to this dominance in the online dating industry, the company looks very intriguing, trading at just 24 times free cash flow.

Chart of MTCH Price to Free Cash Flow

MTCH Price to Free Cash Flow Data by YCharts

Whenever a company’s revenue growth rate nearly matches its price against FCF, it should grab investors’ attention because it highlights growth at a fair price, making growth 20 % of Match Group at 24 times FCF attractive. Thanks to this favorable valuation and its potential for global expansion, Match Group offers long-term multibagger prospects.

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