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5 Best Stocks to Buy if You Have $250 to Spend

Most stocks have been getting cheaper, with the shares of many leading companies falling to distressed levels and sitting at or near fresh 52-week lows. The declines have created great buying opportunities, even for retail investors with only $250 to spend.

The continued weakness of stocks  presents an enormous opportunity for investors. With as little as $250, investors can now buy multiple shares of some of the best run and most dominant companies in the world, companies that have a long track record of delivering value to shareholders.

A year ago, many of these stocks were out of reach for a large number of retail investors, with some costing more than $1,000 for a single share. But the bear market has significantly dropped the prices of many stocks, enabling investors to buy many equities cheaply and benefit from their rallies in the future.

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Here is a list of the five best stocks to buy with $250.

F

Ford

$12.40

GOOG,GOOGL

Alphabet

$86.55,$85.80

DIS

Disney

$94

BAC

Bank of America

$34

NKE

Nike

$124

Best Stocks to Buy for $250: Ford (F)

A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.
A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.

Source: Vitaliy Karimov / Shutterstock.com

An investor seeking stocks to buy for $250 could purchase 20 shares of Ford (NYSE:F) based on its recent price of $12.40.

F stock looks like an absolute steal, given its price–earnings (P/E) ratio of only 5.5. Savvy investors can gain exposure to Ford just as the Detroit-based automaker’s electric-vehicle strategy is being executed.

Despite global supply chain constraints and difficulties sourcing needed parts, Ford is launching electric versions of its most popular vehicles, including the F-150 pick-up truck and the Mustang muscle car, giving market leader Tesla (NASDAQ:TSLA) a run for its money in the process.

Ford is committed to the electrification of its vehicle fleet, having allocated nearly $30 billion to the creation and rollout of electric vehicles through 2025. The company has said that it wants half of all the vehicles it sells to be EVs by 2030.

Ford’s most recent quarterly results were mixed, though largely seen as positive on Wall Street. The company posted earnings per share of 30 cents, versus the 27 cents that was forecast, on average, by analysts. Its revenue in Q3 totaled $37.2 billion, compared to analysts’ mean average of $36.25 billion.

Earlier this year, Ford announced that it was raising its quarterly dividend to 15 cents a share, the same amount that it paid before the pandemic. F stock now has a dividend yield of 4.96%.

Alphabet (GOOG, GOOGL)

GOOG stock: letters spelling out google
GOOG stock: letters spelling out google

Source: rvlsoft / Shutterstock.com

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stock isn’t likely to be this affordable again for a very long time.

Following the Google parent company’s most recent earnings report, GOOGL stock dropped 6% making it easily one of the best stocks to buy with $250 to spend.

YouTube’s ad revenue fell 2%  year-over-year in the third quarter of 2022, while analysts, on average, were expecting an increase of 3%. Alphabet announced several cost-cutting measures, canceling the next generation of its Pixelbook laptop computer and announcing plans to close Stadia, its digital gaming service. The company also said that it is likely to follow other tech giants and reduce its workforce in the coming months.

The added pressure on GOOGL stock following the Q3 earnings has dragged the shares down a total of 37% in the past two months. (A 20-for-1 stock split in July also lowered the share price). While discouraging, the decline makes Alphabet stock look very attractive at its current price of $86 per share.

The company’s price-earnings (P/E) ratio has dropped along with the share price to an attractive level of 16.6 times, which is below the large-cap technology stocks’ average of 25 times.

This year’s pullback is one of the steepest in the company’s history. Investors should take advantage of this rare opportunity.

Disney (DIS)

Source: Nicescene / Shutterstock.com

The share price of Disney (NYSE:DIS) has been clobbered over the past 12 months, landing it on this list of best stocks for $250. DIS stock is down 40% in the last year and currently trading at $94 per share. The last time the stock was this low was in April 2020 shortly after the Covid-19 pandemic hit.

Analysts are pounding the table and screaming that Disney stock is a buy at its current share price, especially with its theme parks outside of China now operating at full capacity for the first time since the pandemic began and several of its movies racking up big box-office totals. While concerns persist that the growth of the Disney+ streaming service is slowing, those worries seem unfounded.

Disney reported that it had more than 235 million streaming subscribers at the end of 2022 across its Disney+, Hulu, and ESPN+ platforms. That combined total enabled Disney to surpass industry leader Netflix (NASDAQ:NFLX), which has a total of 220 million subscribers, to become the undisputed streaming champion.

Moving forward, Disney is likely to continue outperforming, and it is probably only a matter of time before its stock recovers.

Best Stocks to Buy for $250: Nike (NKE)

A stack of red Nike (NKE) shoe boxes.
A stack of red Nike (NKE) shoe boxes.

Source: mimohe / Shutterstock.com

The shares of the world’s largest supplier of athletic shoes and apparel have been pummeled over the past year. The stock of Oregon-based Nike (NYSE:NKE) has plunged 25% and now trades at $124 per share. The decline, while no doubt troubling to shareholders, makes NKE stock a buy for investors with $250 to spend.

A year ago, Nike’s stock was trading at $167 a share. Its big decline has been due largely to the same issues that are hurting companies all over the world – supply chain problems, excess inventories, Covid-19 lockdowns in China, and slowing consumer spending.

Just before Christmas, Nike reported fiscal second quarter earnings that surpassed what was expected on Wall Street, sending its stock more than 10% higher in a single trading session.

The shoemaker announced quarterly earnings per share of 85 cents versus 64 cents that was expected, on average, by Wall Street analysts. Its revenue came in at $13.32 billion, compared to the mean estimate of $12.57 billion.

NKE’s price-earnings ratio of 34 is slightly high, but it’s justified given the company’s market-leading position. And NKE stock pays a quarterly dividend that yields 1.12%. Grab this stock while it remains on sale.

Bank of America (BAC)

bank of america stock
bank of america stock

Source: PL Gould / Shutterstock.com

With $250, an investor could now buy seven shares of Bank of America (NYSE:BAC) with its stock currently trading at $34. Down 28% over the last year amid the broad market selloff , BAC stock is currently cheap to buy and well-positioned to rebound.

The decline of the share price doesn’t take away from the fact that Bank of America, the second-biggest lender in the U.S., remains a very appealing long-term investment.

Bank of America should perform well going forward as the interest on its variable rate loans resets at higher levels following continued rate hikes by the Federal Reserve.

Additionally, Bank of America has increased  its deposit base, which sat at $1 trillion as of September, and has invested significantly in technology to improve its online presence and electronic transactions.

Plus, Bank of America has a big wealth management arm, and its trading unit continues to make hay out of the current stock market volatility. All in all, Bank of America remains a great stock that should be bought while it’s on sale.

On the date of publication, Joel Baglole held long positions in GOOGL, DIS and BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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