Where to invest $1,500 now

If you view the current state of the market with mixed emotions, you are not alone. While a turbulent market can provide plenty of opportunities to buy more stocks you like at a bargain price, it’s also hard to see the stocks you own sink further into the red.

Now, more than ever, it’s critical to distinguish between volatile stock price action and attractive companies that still have compelling growth paths ahead. In other words, make sure you don’t avoid or invest in certain stocks based solely on the stock’s movements, but because of a strong and enduring thesis attached to the core business.

If you have $1,500 to invest right now, here are two great companies to consider.

1. Johnson & Johnson

health giant Johnson & Johnson (JNJ -0.71%) hardly needs any introduction. The maker of household names like Tylenol, Benadryl, Motrin, Aveeno, Band-Aid, and Listerine has actually beaten the market in the past year.

While the S&P500 remains down about 17% over the past 12 months, Johnson & Johnson shares have generated a total return of about 4% over this period. Over the past five years, the company’s total return has been around 40%.

Although Johnson & Johnson is not a get-rich-quick stock (few are), its stock’s steady appreciation and diverse portfolio of companies make it an attractive investment for investors seeking growth and growth. sustained dividends. The Dividend King is currently yielding 2.7%.

Late last year, Johnson & Johnson announced that the company would be split into two dividend-paying entities. Its consumer products segment will be a standalone company, whose name has yet to be announced, while its pharmaceutical and medical device divisions will form another company under the current name of Johnson & Johnson. The split is expected to take effect over the next year and allow each company to pursue its own growth trajectory, while investors can choose to remain invested in either or both.

In the most recent quarter, Johnson & Johnson reported overall sales growth of 3% year-over-year, with operating sales up 8% and adjusted earnings per share up 4.4% compared to the period of the previous year. Of the company’s $24 billion in global sales for the three-month period, $13.3 billion was generated by its pharmaceuticals segment, while its medical devices segment brought in $6.9 billion and the consumer healthcare $3.8 billion.

2. Shopify

One of the many battered pandemic darlings, e-commerce platform Shopify (STORE 0.64%) could still be an attractive buy for investors with the right risk appetite and buy-and-hold horizon.

Can Shopify improve? Absolutely. While revenue grew at a three-year compound annual growth rate of 53% and monthly recurring revenue jumped 13% year-over-year in the last quarter, the company posted a loss. net of $1.2 billion during this three-month period. The company has approximately $7 billion in cash, cash equivalents and marketable securities on its balance sheet.

As a shareholder myself, I can attest to the fact that it has not been easy to watch Shopify experience drastic extremes in share price as consumer and investor sentiment shifts, coupled with a difficult trading environment brought on by rampant inflation (among many factors) saw the stock sink lower and lower.

Why am I still holding on? Because I strongly believe that Shopify is an investment in the future of commerce and what that space will look like – not just in the next two years, but in the next five to 15 years. Shopify’s platform and tools have understandable appeal to merchants, as they allow anyone in just about any industry to launch an online and/or physical retail store with relative ease. .

While consumer spending may face headwinds now that skyrocketing inflation and worries about the economy are causing many to tighten their belts, that won’t always be the case. According to Statista, e-commerce retail sales are on track to achieve 56% growth between 2021 and 2026, amassing $8 trillion by the end of that five-year period.

Given its dominance of the e-commerce space (the company has a 30% share of all e-commerce websites in the US alone) and the long-term growth trajectory this industry has to offer , I think this makes a compelling buying proposition for Shopify that remains intact even as the current environment continues to reduce inventory.

Rachel Warren holds positions at Johnson & Johnson and Shopify. The Motley Fool holds posts and recommends Shopify. The Motley Fool recommends Johnson & Johnson and recommends the following options: $1,140 January 2023 Long Calls on Shopify and $1,160 January 2023 Short Calls on Shopify. The Motley Fool has a disclosure policy.

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