5 Best Stocks Under $100 To Buy Now

Investing in the share market doesn’t always require a massive budget. There are plenty of high-quality shares available for under $100 that offer strong growth potential, solid fundamentals, and even dividends. Shares priced under $100 can be a great way to get started without spending too much.

This article explores five of the best shares under $100 to buy now, along with key considerations to keep in mind when investing in this price range. These shares can help diversify your portfolio and potentially generate returns higher than expected.

 

Why You Should Consider Investing in Stocks Under $100

Accessibility and Diversification

One of the main reasons to consider investing in stocks under $100 is accessibility. Many simple stock investors, especially beginners, might not have the money required to buy high-priced stocks like Tesla or Amazon. For a less substantial upfront investment, cheap stocks under $100 provide a more budget-friendly entry point, allowing investors to step into the world of stock trading without draining their life savings.

However, investing in penny stocks or other lower-priced securities also provides a wider range of diversification. You can invest in several companies, industries, and stock market sectors rather than putting all your money into one or two high-priced stocks. This minimizes risk because a decline in one stock might be compensated by growth in another, resulting in a balanced portfolio.

Building a Strong Foundation

Investing in affordable stocks with strong fundamentals can be a stepping stone to long-term wealth creation. Some of these stocks belong to well-established companies with a proven and predictable track record of revenue and earnings growth. Others may originate from smaller businesses with great potential for appreciation. By carefully selecting stocks to buy under $100, investors can lay the groundwork for a profitable portfolio while benefiting from stock market opportunities.

Moreover, lower-priced stocks often have room for substantial growth. If chosen wisely, these investments can generate impressive returns over time. With careful research and a strategic plan, investing in stocks under $100 can be a powerful way to build wealth and mitigate risk.

 

5 Best Stocks Under $100 to Buy Now in 2025

 

Novo Nordisk (NYSE: NVO)

Novo Nordisk (NYSE: NVO) is a global pharmaceutical giant focusing on diabetes, obesity, and other chronic diseases. In the booming obesity drug sector, the company is capturing significant market share with its product Wegovy, which is a breakthrough in the sector, building on a strong foundation from decades as a leader in the production of insulin. As of March 2025, the stock is priced at approximately $87.50 and has a market capitalization of $398.86 billion. Novo Nordisk remains one of the best stocks for under 100, making it a compelling long-term investment opportunity.

The growth of the company is primarily led by GLP-1 drugs for diabetes and weight loss, which are responsible for boosting revenue growth. In addition, the international obesity epidemic is driving huge demand for efficient weight management options, which places Novo Nordisk in a pivotal position within the industry. It has also expanded into emerging markets, helping overall sales. Even after recent price increases, this stock is still an attractive pick for long-term investors because it has consistently outperformed the stock market.

However, there are certain risks associated with investing in Novo Nordisk. The expiry of patents may adversely affect their future revenues, and the rivalry with pharmaceutical companies like Eli Lilly (LLY) is significant as well. Investors need to consider these aspects before investing. Additionally, the bear market conditions in the pharmaceutical sector could influence its near-term performance.

 

Carnival Corporation (NYSE: CCL)

Carnival Corporation (NYSE: CCL) is the world’s largest cruise operator, with nine brands in a portfolio that serves millions of passengers every year. Carnival currently trades at approximately $21.91 as of March 2025, with around $32.35 billion market capitalization, making it a potentially solid investment for the right investor. The company reported big losses during the pandemic, but with international travel still recovering, global cruise demand is surging, making it one of the best stocks to buy for growth investors.

Carnival is benefiting from record travel bookings since the pandemic and its expansion into new markets, particularly in Asia and Europe. It has also gained pricing power as luxury cruise demand remains high. Analysts expect Carnival to continue strengthening its financial position, paying down debt, and improving its net income. However, high debt levels and an economic downturn that affects discretionary travel spending could pose risks to its future outlook.

 

Zoom Video Communications (NASDAQ: ZM)

Over the past year, Zoom Video Communications (NASDAQ: ZM) became a household name as businesses and individuals worldwide turned to Zoom for its video conferencing solutions. Growth has slowed since the peak of the lockdown-fueled surge, but Zoom remains a key player in the digital collaboration industry. Zoom Video’s stock is trading at approximately $74.93 as of March 2025 and has a market capitalization of about $165 billion, This is one of the best stocks under 100 for long-term investors.

Zoom’s revenue is increasingly dependent on large businesses and enterprise communication solutions like Zoom Phone and Zoom Contact Center. Owing to the increasing adoption of hybrid work environments, analysts maintain positive expectations for the coming years. Additionally, the company operates in international markets and forms strategic alliances to sustain its competitive edge. However, heightened competition from Microsoft Teams and Google Meet, along with a slowing revenue growth rate that hasn’t met Wall Street expectations, remain challenges.

 

The Bank of New York Mellon Corporation (NYSE: BK)

The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is a leading global financial services company specializing in asset management and securities services. As of the first quarter of 2025, BNY Mellon’s stock is trading at approximately $88.95, offering investors a chance to buy into a reputable financial institution without exceeding their budget.

The company’s commitment to innovation is evident through its recent partnership with OpenAI to enhance its AI platform, Eliza. This collaboration reflects BNY Mellon’s dedication to integrating advanced technologies to improve client services and operational efficiency. The company reported strong fourth-quarter earnings, reinforcing its solid market position.

Financially, BNY Mellon has shown consistent growth in sales, with an average return that appeals to conservative investors. However, market conditions, economic downturns, and increased competition from other financial institutions could impact future earnings. Still, BNY Mellon remains a compelling option for those seeking stable investments under $100.

 

Exelixis, Inc. (NASDAQ: EXEL)

Exelixis, Inc. (NASDAQ: EXEL) is a biotechnology company focused on developing cancer treatments. As of March 2025, Exelixis stock is priced at approximately $38.29 and has a market capitalization of approximately $10.81 billion. Exelixis presents a unique blend of stability and innovation, making it one of the great stocks in the biotech sector.

Cabometyx, the company’s flagship drug, remains a major revenue driver. Exelixis has a robust pipeline of cancer drugs currently undergoing clinical trials, which analysts expect to bolster its growth trajectory in the coming years. The company is also creating strategic alliances with major pharmaceutical businesses to fast-track drug development. As a result, Exelixis has been experiencing consistent revenue growth from its existing products.

However, investors must consider risks such as regulatory hurdles, the long approval process of new drugs, and competition from larger biotech companies with substantial research and development budgets. Still, Exelixis holds a strong position in the biotech industry, making it an attractive stock for investors looking for stocks to buy under $100.

 

Things to Keep in Mind When Buying Stocks Below $100

Investing in stocks under $100 can be a great way to build a diverse portfolio without requiring a large initial investment. However, to make the most of these opportunities, it’s essential to evaluate various factors that impact a stock’s potential for growth and profitability. Before you invest, here are key things to know.

Financial Health

Before investing, it is crucial to analyse a company’s financial health by reviewing key metrics such as revenue, profit margins, and debt levels. A financially stable company with strong earnings and manageable debt is more likely to withstand economic downturns and sustain long-term growth. By focusing on businesses with solid financials, investors can reduce the risk of losses and enhance their chances of securing profitable returns.

Growth Potential

The growth trajectory of a company is a hugely determining factor in its investment potential. Companies that consistently grow their revenues, penetrate new markets or have novel products are typically attractive prospects. Examining a company’s past performance, its role in the industry, and its plans for future growth can give insight into its long-term growth potential. Penny shares and other low-priced shares may seem appealing due to their low price, but assessing their sustainability is key. Wall Street expects solid growth from companies with innovative strategies.

Dividend Yield

For those investors on the hunt for passive income, dividend shares can be a great option. A few shares below the $100 mark pay dividends, giving shareholders ongoing payouts. When assessing a dividend-paying share, you might look at its yield, its payout ratio, and the company’s track record of holding or raising dividends. Reliable dividend shares can add stability to a portfolio while generating consistent returns over time.

Analyst Ratings

Analyst ratings provide useful insight into a share’s potential. These ratings should not serve as the only reason for buying or selling shares but can enable investors to assess market sentiment and expected performance going forward. Investor insights and analysis based on the news, target price changes, and industry trends can help gain further clarity for making informed investment decisions.

Risk Tolerance

The share market always involves some risk with your investment. Understanding your risk tolerance is essential in determining the type of shares that align with your financial goals. If you prefer stability, investing in well-established blue-chip shares under $100 may be a safer option. However, if you are willing to be more aggressive for potentially greater returns, small-cap and mid-cap shares with high growth potential could be worth exploring.

Keeping Up with Various Market Caps

Shares under $100 can belong to different market capitalisation categories, including large-cap, mid-cap, and small-cap companies. Large-cap shares typically provide stability and lower volatility. Mid-cap and small-cap shares, by contrast, generally offer greater growth potential but carry greater risk. Investing in both large and small companies with high-performing investments can help you manage risk and achieve higher returns.

 

How to Successfully Invest in Stocks Below $100

While investing in stocks under $100 can be a fantastic approach to wealth formation, it does take careful planning and discipline. Following these best practices can help guide your new investment journey:

• Do Your Research: A low-priced stock isn’t necessarily a bargain. Examine the company’s financial health, revenue multiplier, debt high heels, and market position. Examine important indicators such as price-to-earnings (P/E) ratio, earnings per share (EPS) and return on equity (ROE). Dive into earnings reports, transcripts of earning calls and expert analysis to make informed decisions.
• Diversify Your Portfolio: Diversification is key when it comes to managing risk. Do not invest all your funds in a single stock. Instead, diversify investments among multiple industries such as technology, healthcare, consumer goods, and energy. Diversification reduces risk and provides better long-term stability.
• Monitor Market Trends: Stock prices are subject to shifts in the economy, including interest rates, inflation, and geopolitical events. Read up on financial news, company earnings reports, and trends in the industry. It helps in preparing for the market and adjusting your strategy by following experts’ opinions.
• Invest for the Long-Term: Short-term market fluctuations can be misleading. So rather than being reactive to the daily price moves, concentrate on those companies with solid fundamentals and growth prospects. Long-term investing has always paid off, so patience and discipline are key.

By following these steps, you can make smarter investment choices and maximise the potential of stocks under $100.

 

Common Mistakes to Avoid in Buying Stocks Below $100

One of the biggest mistakes investors make is ignoring fundamentals. A low stock price can make it look like a bargain, but it’s no indication of financial health.  Always assess earnings, debt levels, and growth potential before investing.

Chasing hype is also a common trap. And there’s no guarantee that just because a stock is trending, it will make for a smart purchase. Speculative stocks can make big swings in price and leave you with losses. Instead of following market buzz, rely on thorough research.

Lack of diversification is risky. Investing too heavily in one stock can be bad for your portfolio if that company doesn’t perform well. A well-diversified strategy spreads risk and ensures stability.

Emotional decision-making leads to bad decisions. Panic selling and irrational buying are caused by fear and greed. By following a well-defined plan, investors can make rational decisions based on research.

 

Conclusion

Investing in shares under $100 offers a great opportunity to build wealth without requiring a huge capital investment. With thorough research, proper diversification, and staying informed about market trends, one can achieve great success. Familiarizing yourself with a company’s fundamentals, assessing its long-term expansion potential, and sticking to a disciplined investment strategy will help you make better decisions.

Although share prices go up and down, a long-term perspective is key to accumulating wealth. By avoiding common mistakes like chasing hype, neglecting fundamentals, and acting emotionally, you’ll be protecting your investments while maximising returns. Developing an investment strategy will allow you to confidently traverse the share market and help achieve your financial goals.

 

What are the Best Stocks to invest in right now?

Check our buy/sell tips.

Frequently Asked Questions on Investing in Stocks Under $ 100

• What are the best stocks under $100 to buy today?

  Top picks include Novo Nordisk at around $87.50 per share, benefiting from strong growth in the obesity and diabetes sectors, Carnival Corporation at $21.91, which is poised to recover with the rebound in global cruise demand, and Zoom Video Communications at $74.93, continuing to play a key role in the remote work and digital collaboration sectors. These stocks offer a budget-friendly entry point and the potential for portfolio diversification.

• How do penny stocks compare to other stocks under $100?

  Penny stocks, trading for less than $5 per share, offer high reward potential due to their volatility but come with greater risk compared to other stocks under $100. Shares like Novo Nordisk, Carnival Corporation, and Zoom Video Communications are generally safer bets, offering stable earnings and strong growth prospects, along with more predictable market behaviour.

• What should investors focus on when choosing cheap stocks?

  Investors should focus on the financial health of the company, including revenue, net income, and profit margins. Also, consider factors like dividend yield, market conditions, and analyst opinions to ensure a balanced mix of growth and income potential. For example, Novo Nordisk shows strong revenue growth, while Zoom Video Communications has a solid position in enterprise communication.