Are you looking to jump into the stock market with a limited budget? Don’t worry; you can still discover the best growth stocks to buy for $500. These companies can outpace the market with the potential for significantly higher returns.
While past performance does not necessarily indicate future results, some sectors and trends offer fertile ground for upside. Whether it’s established tech giants operating in cloud computing or cutting-edge cybersecurity firms, there are various options to consider. Furthermore, the artificial intelligence revolution continues to be a driving force behind these emerging sectors.
Now, let’s unpack the three best growth stocks to buy for $500 right now.
Oracle (ORCL)
Oracle (NYSE:ORCL), a software and cloud computing industry household name, might not immediately come to mind as a growth stock. However, the company is undergoing a significant transformation, aggressively pursuing AI and cloud infrastructure market opportunities.
Oracle is a leading technology giant and one of the largest software companies in the world in terms of revenue. Over the last several years, they have rapidly expanded their data center operations and embraced the AI race. With the company aware of the need to scale operations to meet the demand for AI workloads, they’re building 100 new data centers. Furthermore, their Gen2 Cloud infrastructure is in a ‘’hyper-growth phase,’’ with revenue up 53% in Q3 2024.
In their latest quarterly financial results, revenue increased 7% YOY to $13.3 billion. Cloud infrastructure revenue swelled 49%, with Oracle’s total remaining performance obligations up 29% to more than $80 billion. Management expects to continue seeing large contracts for Gen2 Cloud as their data center operations reach scale. With Oracle’s cloud business at a $20 billion run rate, investors should consider snapping up this growth stock for explosive returns.
UiPath (PATH)
UiPath (NYSE:PATH) is at the forefront of Robotics Process Automation (RPA), a technology that automates repetitive tasks using software robots and AI. This rapidly growing market offers significant wealth building potential tech stock investors.
UiPath is one of the leading global RPA companies and continues to see significant traction. According to Grand View Research, the RPA market will grow at a 39.9% CAGR from 2023 – 2030. Automated workflows will help drive increased productivity and optimization for businesses. Additionally, the company achieved its first quarter of GAAP profitability as a public company.
In their Q4 and FY24 results, UiPath saw record quarterly revenue of $405 million. Annual recurring revenue increased by 22% to $1.46 billion, with an adjusted FCF of $146 million. Net income came in at $33.92 million or $0.06 per share, compared to a net loss in the prior year. UiPath continues making strategic investments in AI and plans to drive operating leverage in FY25.
Check Point Software (CHKP)
Check Point Software (NASDAQ:CHKP), a leading provider of cybersecurity solutions, is well positioned to meet the marketplace’s demand. Their AI-powered cloud security platform, XD Horizon XDR/HRP, continues to gain traction.
Check Point is investing heavily in cloud security, given the long-term market opportunities in the AI cloud race. The cloud security market, last valued at $28.35 billion in 2022, is projected to grow at a 13.1% CAGR from 2022 to 2030. Furthermore, Gartner estimates global security and risk management spending will grow by 14% in 2024. This is a significant tailwind for Check Point as they are one of the world’s leading native cloud solution providers.
Cyber and malware attacks have steadily risen over the last decade, making cybersecurity integral for all business sizes. In FY23, revenue increased 4% YOY to $2.41 billion. GAAP EPS increased by 13% YOY to $7.10 per share, with operating margins remaining robust at 37%. They have one of the top-rated threat detection platforms among their competitors, and they recently partnered with Nvidia to secure an AI-powered cloud infrastructure. This makes Check Point one of the top growth stocks to buy for $500 in 2024.
On the date of publication, Terel Miles did not have (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.