2025.10.27 2025.10.27
Best Cheap Stocks Under $100 to Buy Now

Gleb Kabanovhttps://www.litefinance.org/blog/authors/gleb-kabanov/

Stocks priced at $100 or less are a cost-effective way for investors with limited capital to enter the stock market. These cheap stocks allow you to swiftly build a diversified portfolio, combining growth stocks, dividend-paying stocks, and value stocks.

The key to success with such investments is discipline and a well-thought-out investment strategy. This article aims to provide insights into identifying affordable stocks, review stock selection criteria, and outline effective risk management strategies.

Major Takeaways

• Despite their low price, the best stocks under 100 may belong to the world’s largest companies.

• Cheap stocks are affordable investments that can be purchased even with a small amount of capital.

• Some inexpensive 100 dollar stocks offer investors stable dividends and generate investment growth.

• Value stocks combine low prices and high dividends.

• The key criteria for stock analysis are the price to earnings ratio (P/E), earnings per share (EPS), market capitalization, and debt sustainability.

• Penny stocks are financial instruments with high risk and low liquidity.

• Portfolio diversification reduces the risk when trading volatile stock market assets.

• A stock market investment strategy for a stock under 100 dollars should encompass global economic trends, political events, and the sector’s growth prospects.

What Are Cheap Stocks Under $100?

Cheap stocks are shares of companies whose price does not exceed $100. Such stocks often attract investors with limited start-up capital.

A low market price does not always mean that the company is underperforming. On the contrary, these are often undervalued stocks that have temporarily lost value due to market conditions, but the company posts robust profits, shows positive cash flow, and has competitive advantages. Many companies with such stocks are included in the S&P 500 index, often representing blue-chip stocks in the market.

For investors considering where to invest $100, these shares may serve as a perfect investment vehicle. Cheap stocks provide an opportunity to enter the stock market, learn the basics of fundamental analysis, and develop an investment strategy with minimal risk.

Even a micro-investment of as little as $100 allows you to test the DCA (Dollar-Cost Averaging) approach, which spreads your purchases evenly. The main idea behind the DCA investment strategy is to invest the same amount at regular intervals, regardless of the current stock price. This strategy can help you mitigate the impact of market fluctuations, allowing you to average out the purchase price, which is especially useful when investing in undervalued stocks.

When hand-picking stocks under $100, it is important to focus not only on price but also on key fundamentals such as the P/E ratio, earnings per share (EPS), debt load (Debt/EBITDA), and return on equity (ROE). Securities that trade less than the industry average are often attractive value stocks, especially if the company's business remains profitable and sustainable.

Notably, it is important to distinguish between cheap stocks and penny stocks. The latter cost less than $5, are traded over-the-counter, have low liquidity, and exhibit high volatility. Large companies that issue cheap stocks may have a track record of dividend payments, transparent financial reporting, and relatively predictable earnings.

Thus, inexpensive yet fundamentally strong companies can serve as a launchpad for developing a reliable investment strategy and exploring the stock market.

Why Invest in Stocks Under 100?

Stocks priced at $100 or less allow investors to enter the stock market with a relatively modest initial investment while potentially achieving significant returns. These affordable stocks are well-suited for investors seeking the best assets and guidance on allocating $100 to secure long-term profits without significant risk. Even modest investments can generate substantial returns when executed in a disciplined manner, with a focus on selecting reputable issuers and implementing the principles of portfolio diversification.

• Accessibility. Even a small amount of capital allows you to enter the stock market.

• Growth potential. Companies with low share prices often recover after drawdowns.

• Dividend stocks. Many of the cheapest stocks pay stable dividends to their holders.

• Opportunity to invest in different assets. Shares of mining, logistics, and pharmaceutical companies, as well as real estate funds, often trade below $100 but generate high cash flow.

• Portfolio diversification. Investors reduce risk by buying stocks for less than $100 and spreading funds across different sectors.

• A $100 investment can be a starting point for a long-term portfolio in the stock market.

Top 5 Best Stocks Under 100 to Buy Now

Many investors view stocks priced under $100 as an opportunity to maintain portfolio balance. In the cheap stock segment, you can find solid companies with stable cash flows, low debt loads, transparent statements, and high-quality corporate governance. These stocks are suitable for those who want to start investing with a small amount and fast returns.

Below are examples of companies whose shares are a good buy in 2025. These best stocks under $100 are suitable for both novice investors and those looking to build a diversified portfolio for a long-term investment horizon.

Barrick Mining (B)

Barrick Mining is one of the world’s largest companies engaged in mining gold, copper, and other industrial metals. It is among the leaders in the commodities sector. The B stock is attractive to investors seeking low-priced shares with defensive characteristics. With a P/E ratio of ~27, the company generates a steady cash flow and pays stable dividends.

Barrick is developing projects in various countries and on all continents. B is a value stock, which makes it an effective hedge against inflation, geopolitical risks, and commodity volatility.

Freeport-McMoRan (FCX)

Freeport-McMoRan is the world’s largest producer of copper, gold, and molybdenum. This US-based mining company plays a key role in the global industrial metals supply chain. FCX benefits from a structural copper deficit linked to the development of green energy, electric vehicles, and infrastructure modernization projects.

The company is showing steady growth in revenue and earnings per share (EPS), with a P/E ratio of around 32, which is slightly above the market due to rising precious metal prices. The company pays dividends regularly. Freeport-McMoRan shares combine the characteristics of growth and value stocks, providing investors with stable returns and protection against inflation.

Pinterest (PINS)

Pinterest is a social media platform for visual content with a global audience, providing a stable revenue stream. The company has positive earnings per share (EPS) growth and high margin growth potential. Notably, the PEG ratio is below 1, suggesting that the PINS stock is undervalued. The company is developing commercial tools, improving monetization, and remains one of the most promising growth stocks in the digital advertising sector.

United Parcel Service (UPS)

United Parcel Service is a global leader in logistics and delivery. UPS provides transportation services for e-commerce, industry, and international trade. The company’s shares are a solid choice for investors seeking low-cost stocks with a stable cash flow and a dividend yield of approximately 7.5%. The company has demonstrated consistent performance, advanced automation, and effective cost management.

The P/E ratio of 13 indicates a moderate valuation relative to the business’s profitability, and the regular dividends attract long-term investors. UPS maintains its reputation as a top-tier dividend stock, consistently generating returns that significantly surpass the market benchmark.

International Seaways Inc. (INSW)

International Seaways Inc. is a leading US company focused on the transportation of crude oil and petroleum products worldwide. The company owns a fleet of more than 70 oceangoing vessels and works with the world’s largest oil traders, ensuring a stable cash flow.

The INSW tanker stock has a P/E ratio of around 9 and earnings per share (EPS) of $4.8–5.0, indicating a moderate valuation and high management efficiency. The dividend yield of around 7% attracts investors and contributes to INSW’s growth.

How to Analyze Cheap Stocks Under 100

Today, anyone can find stocks valued under $100 without having to access specialized trading platforms or undergo extensive professional training. The most important aspect is to take a step-by-step approach. To invest in undervalued stocks, it is essential to define clear criteria, select reliable valuation tools, and leverage modern analytical methods, such as artificial intelligence, to streamline the selection process and improve efficiency.

The first step is to filter assets using stock screeners. MarketScreener, Finviz, Yahoo Finance, and Simply Wall St. offer the most convenient solutions. The filters allow you to specify a price up to $100 and select price-to-earnings (P/E) and price-to-book (P/B) ratio ranges, as well as earnings per share (EPS) ranges. For instance, companies with a P/E ratio below 15, positive EPS growth, and a dividend yield above 3% are often undervalued but sustainable businesses.

Next, you need to conduct a fundamental analysis: assess market capitalization, debt load, and margins. A low P/E ratio does not always mean that a stock is cheap — you need to analyze revenue stability, debt sustainability, and industry prospects. You can check the data on Morningstar, MarketWatch, or the company’s official reports.

Such analysis can be difficult for a retail investor, so you can employ AI assistants. Platforms such as Finchat, Alpha Research, or ChatGPT, connected to Yahoo Finance, allow you to automatically analyze financial statements, identify a company’s strengths and weaknesses, calculate multipliers, and assess the likelihood of growth.

The final stage is technical analysis, which helps determine the optimal time to buy the stock.

Before investing, it is essential to determine the investment period and select the appropriate time frame. If the expected holding period is between three and five years, it is better to monitor the asset’s quotes on the W1 time frame. For investments with a duration of up to one year, a D1 time frame is appropriate. It is essential to utilize support and resistance levels, along with technical indicators, to ensure a comprehensive analysis. This approach is designed to transform a $100 investment into a deliberate, solid foundation for building a long-term portfolio.

Investment Strategies for 100 Dollar Stocks

Even a small amount of capital can be turned into a profitable portfolio if you use reliable strategies with clear entry rules, goals, and risk management. Let’s explore two practical strategies for investors starting with an investment of $100.

1. Targeted Growth 100

This strategy aims to generate capital growth from undervalued stocks where earnings forecasts exceed market expectations. The investor divides $1,000 into four $250 portions and invests in stocks of four companies, each costing up to $100. Examples of possible investments:

• Pinterest (PINS) — focus on advertising revenue growth and e-commerce development. Entry threshold: up to $36, target price — $55, investment period — 3 years.

• Freeport-McMoRan (FCX) — betting on copper price growth and demand for green energy. Buy at P/E < 13 and below, hold throughout the industrial metals growth cycle, which usually follows the growth of gold and silver.

• Intel (INTC) — a well-known processor manufacturer that has lost its advantages in recent years. Intel is expected to recover its semiconductor production in the US. Buy at $30. Hold the position for 3–4 years, with a target return of up to 50%.

• Occidental Petroleum (OXY) is a diversified oil and gas company backed by Berkshire Hathaway. The strategy is to profit from oil growth and the buyback program. Buy the stock when the price is above $50 and close the position when it rises above $90. The dividend yield is about 2.25% per share.

If the price drops by 10%, you can use dollar-cost averaging (DCA). In addition, you should rebalance your portfolio every six months if needed.

2. Defensive Income

The investor’s goal is to generate passive income with minimal risk. Dividend stocks with a yield of more than 3% and a stable cash flow are selected for investment.

• Pfizer Inc. (PFE) is a global leader in the pharmaceutical industry. With an average share price of $20–30, it can yield up to 6% annual dividends and may increase by 100%.

• Kinder Morgan (KMI) — 6% dividend yield, with a stable cash flow from gas transportation.

• International Seaways (INSW) — 7% yield, low P/E ≈ 9, EPS growth.

• Enbridge (ENB) — energy infrastructure, with a ~6% dividend yield.

The portfolio should be rebalanced every six months. In this strategy, the total return of 8–10% per year is important. Such a portfolio provides an actionable framework and turns investments of up to $100 into a steerable strategy for generating stable profits.

Conclusion

Investing in stocks under $100 is not just a way to start small, but a full-fledged vehicle for building a sustainable portfolio. Even small investments can yield significant returns if you apply a solid strategy and portfolio diversification. A combination of growth stocks and dividend stocks can balance risk and return, while a dollar-cost averaging (DCA) strategy can help reduce the impact of market fluctuations.

Companies such as Enbridge, International Seaways, Occidental Petroleum, Intel, and Freeport-McMoRan prove that high-quality, liquid, low-priced stocks can be just as promising as more expensive ones. The key is not to predict the future price, but to build wealth over time by sticking to a long-term plan, staying disciplined, and improving your investment strategy.