The current bull market has left some businesses behind, despite their strong performance. On the other hand, some companies are facing challenges in the current macroeconomic environment, which is reflected in their stock prices. When deciding which businesses to add to your portfolio, it’s important to consider factors beyond just the stock price. You should look for companies with a strong underlying business, a competitive advantage, and potential for future growth. The right stocks for your portfolio will also depend on your investing style, capital, and risk tolerance.
If you’re interested in buying stocks at relatively low valuations, there are some companies worth considering for long-term investments. Here are two options to add to your buy list:
1. Hims & Hers:
Hims & Hers (NYSE: HIMS) operates a health and wellness platform that provides users with access to telehealth services, prescriptions, and over-the-counter products through a subscription model. The company recently entered the GLP-1 weight loss market, offering users access to GLP-1 injections at a lower cost compared to competitors. Hims & Hers focuses on various areas such as sexual health, skincare, hair care, and mental health. Despite a 140% increase in share price over the past year, the stock is trading at a reasonable price-to-sales ratio of 4.5.
2. Upstart:
Upstart (NASDAQ: UPST) operates a lending platform powered by machine learning and AI. The company assesses lending risk using advanced technologies and data points to facilitate loans funded by external partners. While the stock has seen a decline in share price, it offers a compelling value proposition with a price-to-sales ratio of 3.8 and a price-to-book ratio of 3.5. Upstart operates in various lending areas, including personal, auto, and home loans, with a total addressable market valued at $4 trillion.
Both Hims & Hers and Upstart present opportunities for investors looking to add growth stocks to their portfolio. These companies have unique business models and growth potential that make them attractive long-term investments. Before investing, consider your risk tolerance and investment goals to determine if these stocks align with your portfolio strategy.