Here are seven of the best stocks to invest in if you have $1,000.
If you have an extra $1,000 sitting in a savings or checking account, one of the best ways to earn a return on that money is to invest in the stock market. If you’re new to investing, buying a low-cost, diversified S&P 500 exchange-traded fund, or ETF, such as the SPDR S&P 500 ETF Trust (ticker: SPY), is a relatively low-risk place to start. However, if you’d rather begin building your own stock portfolio from scratch, here are seven of the best blue-chip stocks to buy with $1,000 that have “buy” ratings from the Bank of America analyst team.
UnitedHealth Group Inc. (UNH)
UnitedHealth is the largest U.S. managed health care firm, providing health plans and health care services to a wide range of customers. Analyst Kevin Fischbeck says UnitedHealth is creating long-term value beyond the sum of its parts. The company is aiming for long-term earnings per share, or EPS, growth of at least 13%, and Fischbeck says UnitedHealth’s 2023 EPS growth guidance of between 11% and 13% is likely conservative. UnitedHealth’s 5.6% year-to-date gain as of Dec. 16 is the best performance of any stock on this list in a difficult market. Bank of America has a “buy” rating and $632 price target for UNH stock, which closed at $523.70 on Dec. 16.
Visa Inc. (V)
Visa is a global leader in credit card and digital and mobile payments, and operates the world’s largest retail electronic payment network. Analyst Jason Kupferberg recently met with Visa management and says the company’s European business, which accounts for about 20% of its total volumes, is finally starting to build positive momentum. Kupferberg says Visa has a high-quality business model, financial flexibility and secular tail winds in digital payments. He says Visa continues to diversify and scale its business, and the stock is both attractively valued and recession-resistant. Bank of America has a “buy” rating and $248 price target for V stock, which closed at $206.89 on Dec. 16.
Mastercard Inc. (MA)
Mastercard is a leading credit card and digital payments network. Kupferberg says consumer spending remains resilient despite growing concerns about a recession in the first half of 2023. He says Mastercard has a much more diversified business than it did during the 2008-2009 financial crisis, and has a proven track record of managing expenses during cyclical economic downturns. Kupferberg says Mastercard has a high-quality business model and a healthy balance sheet, and is a recession-resistant investment with significant long-term growth opportunities. Bank of America has a “buy” rating and $369 price target for MA stock, which closed at $345.84 on Dec. 16.
Home Depot Inc. (HD)
Home Depot is a leading North American home improvement retail store operator. Home Depot shares also have the highest dividend yield on this list, at 2.4%. The housing market boom that occurred during the pandemic has cooled in 2022 as interest rate hikes have made mortgages less affordable. However, analyst Elizabeth Suzuki says the U.S. home renovation demand remains strong. In addition, Suzuki says Home Depot has navigated supply chain disruptions and is an excellent source of high-quality total shareholder returns. Bank of America has a “buy” rating and $360 price target for HD stock, which closed at $323.34 on Dec. 16.
Thermo Fisher Scientific Inc. (TMO)
Thermo Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Analyst Derik de Bruin says Thermo Fisher’s third-quarter margins disappointed Wall Street, but focus on margins overshadowed the company’s strong 14% core sales growth in the quarter, excluding COVID-19-related sales. While the economic backdrop remains uncertain, de Bruin says Thermo Fisher has demonstrated it can navigate difficult environments. He says the company provides a “unique value proposition” as both a vendor and service provider to the biopharmaceutical market. Bank of America has a “buy” rating and $600 price target for TMO stock, which closed at $536.44 on Dec. 16.
Accenture PLC (ACN)
Accenture is a leading global system integrator that provides consulting, technology and outsourcing services. Accenture shares have taken a -35.3% hit this year as of Dec. 16, making it the worst-performing stock on this list. However, Kupferberg says difficult macroeconomic conditions are having a minimal impact on the company’s growth. In fact, Accenture has guided for fiscal 2023 constant-currency revenue growth of between 8% and 11%. Kupferberg says Accenture’s guidance is typically conservative, and its strong bookings numbers and market-share gains will be bullish catalysts for the stock. Bank of America has a “buy” rating and $350 price target for ACN stock, which closed at $264.48 on Dec. 16.
Lowe’s Cos. Inc. (LOW)
Lowe’s is another leading home improvement retailer, and Suzuki says the company will also benefit from the same tail winds driving Home Depot’s long-term outperformance. Suzuki says Lowe’s sales to pro customers were particularly impressive in the third quarter, up 19% from a year ago. Even in a severely inflationary environment, Lowe’s operating margin expanded to 12.7% in the quarter. Lowe’s also raised its fiscal 2022 sales guidance, a move Suzuki says demonstrates management is confident in the near-term outlook for the home improvement market. Bank of America has a “buy” rating and $278 price target for LOW stock, which closed at $206.14 on Dec. 16.
7 best stocks to buy now with $1,000:
— UnitedHealth Group Inc. (UNH)
— Visa Inc. (V)
— Mastercard Inc. (MA)
— Home Depot Inc. (HD)
— Thermo Fisher Scientific Inc. (TMO)
— Accenture PLC (ACN)
— Lowe’s Cos. Inc. (LOW)
More from U.S. News
8 Best Cheap Dividend Stocks Under $20
7 Best Socially Responsible Funds
7 Best Stocks to Buy Now With $1,000 originally appeared on usnews.com
Update 12/19/22: This story was previously published at an earlier date and has been updated with new information.
