In this article we will take a look at the 10 best stocks to invest your $1000. You can skip our detailed analysis of these companies to invest in, and go directly to 5 Best Stocks to Invest Your $1000.
Let’s be honest: It’s extremely hard to start a business. It takes years and a fortune to set up a business and make it profitable. On the other hand, if you invest in already-established businesses after due diligence, your chances of making money rise dramatically. Investing in the stock market remains one of the best ways to get rich and make money. Data shows that large-cap stocks posted an average return of 11.9% per year in a period of 84 years through 2010, while small-cap stocks returned 16.1% in the same period.
But your mindset should be long term. That’s the only way to gain from the market. For example, if you invest $10,000 in the stock market and wait for 30 years, based on the average return, your initial investment would soar to $100,000. If you were to put the same money in a bank account it will be worth $18,000 in 30 years.
But investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
If you are a beginner investor and looking to invest your $1000 in the stock market, this article lists some of the best options you should consider. Most of these stocks are operating in high-growth areas with an explosive growth potential. These areas include EVs, solar, artificial intelligence, ecommerce and biotechnology. Some of these companies include Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL), Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) and First Solar, Inc. (NASDAQ: FSLR).
Photo by Adam Nowakowski on Unsplash
Our Methodology
If you plan to invest a small amount in stocks, instead of funneling your money into penny stocks that don’t have strong fundamentals or exciting products, you should invest in companies that have proven revenue streams and a clear path to long-term growth, even if these stocks seem expensive considering the limited budget. We preferred affordable stocks with solid growth catalysts. The stocks included in our list are getting positive attention from market experts, hedge funds and analysts.
With this context and industry outlook in mind, let’s now discuss the 10 best stocks to invest your $1000.
Best Stocks to Invest Your $1000
10. Invesco Solar ETF (NYSE: TAN)
Number of Hedge Fund Holders: N/A
Energy markets are going through huge transformations amid a global push towards renewable energy. Invesco Solar is one of the best solar ETFs to buy to profit from this global trend. According to IEA, the world’s renewable energy capacity increased by 45% as compared to the previous year, the biggest jump since 1999. The ETF ranks 10th in our list of best options to invest your $1000.
Invesco Solar ETF’s notable holdings include famous solar stocks like SolarEdge Technologies, Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Sunrun Inc and Xinyi Solar Holdings Ltd.
The ETF has gained 141% over the last 12 months.
Like Advanced Micro Devices, Inc. (NASDAQ: AMD), Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Nokia Corporation (NYSE: NOK), Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL) and Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), TAN is a solid option to invest your $1000.
9. Inuvo, Inc. (NYSE: INUV)
Number of Hedge Fund Holders: N/A
Inuvo, Inc. (NYSE: INUV) is operating in the advertising market with its AI-based solutions to help companies place and optimize their ads products. Inuvo, Inc. (NYSE: INUV) is famous for its IntentKey solution, which uses AI to help advertises find their most receptive audience and then target them. A major chunk of the company’s revenue comes from ValidClick, a solution that works as an intermediary between advertisers and publishing platforms. The stock ranks 9th in our list of best stocks to invest your $1000.
Amid the coronavirus pandemic the company has been losing money, but as spending on digital ads grows and advertises look to spend in AI solutions to optimize their results, Inuvo, Inc. (NYSE: INUV) stock could gain a lot of value in the coming years.
Like Nokia Corporation (NYSE: NOK), Advanced Micro Devices, Inc. (NASDAQ: AMD), Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL) and Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), Inuvo is one of the best stocks for beginner investors.
8. Nokia Corporation (NYSE: NOK)
Number of Hedge Fund Holders: 21
Nokia Corporation (NYSE: NOK) has become a major player in the 5G space, which is set to soar in the coming years as companies all over the world expand 5G connectivity. Analysts believe that restrictions on Ericsson’s operations in China would also help the stock in the short term. Nokia’s first quarter results beat analysts’ expectations. The stock ranks 8th in our list of best stocks to invest your $1000.
Nokia Corporation (NYSE: NOK) continues to sign key 5G deals. Nokia (NYSE:NOK) recently agreed with Equinor (NYSE:EQNR) to deliver a private 4G and 5G-ready solution for Equinor’s international operations. Nokia Corporation (NYSE: NOK) was also selected by T-Mobile in Netherlands as a strategic partner to increase digital transformation. The company reiterated its 2021 outlook and gave a strong outlook for 2023.
Like Advanced Micro Devices, Inc. (NASDAQ: AMD), Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL) and Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), Nokia Corporation (NYSE: NOK) is one of the best stocks for beginner investors.
According to our database, the number of NOK’s long hedge funds positions increased at the end of the first quarter of 2021. There were 21 hedge funds that hold a position in Nokia in the first quarter compared to 19 funds in the fourth quarter. The biggest stakeholder of the company is Arrowstreet Capital, with 30.3 million shares, worth $119.8 million.
7. NIO Inc. (NYSE: NIO)
Number of Hedge Fund Holders: 28
NIO Inc. (NYSE: NIO) is one of the best EV stocks to buy and hold for the long term. Recently, Wedbush Securities gave positive comments about NIO Inc. (NYSE: NIO), along with several other EV stocks, citing the “Green Tidal Wave” that is going to sweep across the world. The firm said that the current pullback in EV stocks presents an attractive entry point. The firm’s analyst Dan Ives said that the EV market would be a $5 trillion total addressable market over the 10 years. The stock ranks 7th in our list of best stocks to invest your $1000.
Like Advanced Micro Devices, Inc. (NASDAQ: AMD), Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Nokia Corporation (NYSE: NOK), Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL) and Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), NIO is one of the best stocks for beginner investors.
What makes Nio special is its huge infrastructure, Battery-as-a-Service (BaaS) offerings that are seeing a huge demand. The company has thousands of tech patents and plans to expand in Europe and Asia.
As of the end of the first quarter, there were 28 hedge funds in Insider Monkey’s database that held stakes in NIO, compared to 34 funds in the fourth quarter. D E Shaw, with 11.4 million shares of NIO, is the biggest stakeholder in the company.
6. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Advanced Micro Devices, Inc. (NASDAQ: AMD) has surprised the semiconductor markets with its swift growth and how it became a formidable competitor of Intel, even beating the latter in several areas. In the first quarter, Advanced Micro Devices, Inc. (NASDAQ: AMD)’s revenue jumped 92%, beating the Street estimates by 7.25%. Operating margin in the quarter came in at 22.1%, compared 13.2% a year ago. The stock ranks 6th in our list of best stocks to invest your $1000.
Advanced Micro Devices, Inc. (NASDAQ: AMD) is benefitting from Intel’s manufacturing blunders and continues to consolidate its position as a market leader by acquiring major semiconductor companies. The company has increased its share of PC chip sales to more than 17% as of the first half of 2020, compared to just 8% about three years ago.
Like Enphase Energy Inc (NASDAQ: ENPH), First Solar, Inc. (NASDAQ: FSLR), Nokia Corporation (NYSE: NOK), Plug Power Inc. (NASDAQ: PLUG), Apple Inc. (NASDAQ: AAPL) and Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), Advanced Micro Devices, Inc. (NASDAQ: AMD) is one of the best stocks for beginner investors.
A total of 62 hedge funds tracked by Insider Monkey were bullish Advanced Micro Devices, Inc. (NASDAQ: AMD) at the end of the first quarter.
Artisan Partners Limited Partnership, in their Q4 2020 investor letter, mentioned Advanced Micro Devices, Inc. (NASDAQ: AMD). Here is what the fund said:
“We also exited our positions in Advanced Micro Devices, Inc. (NASDAQ: AMD). Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
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Disclosure: None. 10 Best Stocks to Invest Your $1000 is originally published on Insider Monkey.
