NVEI:CC - 3 No-Brainer Stocks to Buy With $200 Right Now
2024-03-19 16:00:00 ET
You don’t require huge capital to start your investment journey. A small but regular investment can create enormous wealth over a long period, thanks to the power of compounding. Meanwhile, investors should be careful when choosing stocks, as not all yield higher returns. Also, one must balance their portfolios with growth and dividend stocks according to their risk-taking abilities.
Meanwhile, here are three no-brainer stocks that you can buy for $200 right now.
Nuvei
Nuvei ( TSX:NVEI ) is a payment processing company that allows its customers to accept next-gen payment methods. It operates in over 200 markets and accepts 150 currencies and 680 APMs (alternative payment methods). Amid its solid organic growth and contribution from recent acquisitions, its revenue grew by 41% in 2023, while its net losses declined from $62 million to $0.7 million.
Meanwhile, the e-commerce growth has made digital transactions popular, thus creating a multi-year growth potential for the company. Nuvei is developing new products, expanding its geographical presence, expanding its APM portfolio, and forming new partnerships, which can boost its financials in the coming quarters. The fintech company’s management projects its topline to grow at 15-20% annually in the medium term. Also, the management expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin to cross 50% in the long run.
Meanwhile, The Wall Street Journal on Sunday reported that Advent International is working on acquiring Nuvei, increasing its stock price by over 32%. Despite the surge, it trades at an attractive valuation, with its NTM (next-12-month) price-to-earnings multiple at 14.3. So, I believe Nuvei is an excellent growth stock to buy right now, despite the recent surge.
Dollarma
Second on my list is Dollarama ( TSX:DOL ), a defensive stock with a growth tilt. The discount retailer has adopted a direct sourcing model, which increases its bargaining power and thus allows it to offer its products at attractive prices. The company’s quick sales ramp-up has resulted in a payback period of around two years. The company has achieved an average annual sales of $2.9 million within two years of opening while requiring around $920,000 to open a new store, thus resulting in a low capital intensity and higher return on investment.
Meanwhile, the discount retailer is expanding its store network and hopes to reach 2,000 stores by fiscal 2031, representing an addition of 459 stores. The company owns a 50.1% stake in Dollarcity, which operates in Latin America. Meanwhile, Dollarcity has plans to add 370 stores over the next five years, which could increase its contribution towards Dollarama. So, considering all these factors, I believe Dolalrama would be an excellent buy right now.
Enbridge
Enbridge ( TSX:ENB ), which has been paying a dividend uninterruptedly for 69 years, is my third pick. The midstream energy company earns around 97% of its cash flows from cost-of-services and take-or-pay contracts, thus delivering stable cash flows. Around 80% of its adjusted EBITDA is inflation-indexed, shielding its financials in this inflationary environment. The company has strengthened its financial position by lowering its debt-to-EBITDA ratio to 4.1.
Further, Enbridge has acquired East Ohio Gas Company and is working on acquiring two other natural gas utility assets in the United States. With these acquisitions, Enbridge would become North America’s largest natural gas utility platform, serving around seven million customers. The increased contribution from low-risk utility businesses could further stabilize Enbridge’s cash flows, making its dividend payouts safer. The company currently offers a quarterly dividend of $0.915/share, with a forward yield of 7.61%. Also, its NTM price-to-earnings multiple stands at 17.2, making it an attractive buy.
The post 3 No-Brainer Stocks to Buy With $200 Right Now appeared first on The Motley Fool Canada .
Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .
2024