2 Ultimate Growth Stocks to Buy With $500 Right Now

Growth stocks have been on a rollercoaster ride lately, capturing the attention of savvy investors amid mixed sentiments. Despite the struggles faced by many companies in the wake of economic uncertainties, some quality businesses have shown resilience and potential for long-term growth. If you find yourself with $500 to invest, let’s dive into two standout stocks that are primed for expansion.

1. PayPal (NASDAQ: PYPL)

Let’s kick things off with PayPal, a heavyweight in the fintech space. After a slight dip following its recent earnings report, PayPal’s stock has rebounded significantly, up about 30% since the beginning of 2024. However, it remains about one-third of its peak valuation from 2021.

PayPal’s recent journey has been nothing short of turbulent. Like many other companies, it soared during the pandemic but struggled with post-pandemic realities, particularly with slowing user growth and challenges in e-commerce sales due to rising inflation. However, the tides are shifting, and PayPal is displaying a strong turnaround.

In the third quarter, the company reported impressive metrics: a 6% year-over-year revenue rise, reaching $7.8 billion, coupled with a 19% leap in operating income to $1.4 billion. Additionally, while the number of active accounts only increased by 1%, total payment volume surged by a solid 9%, indicating that PayPal’s platform remains essential for users.

With a net income of $1.1 billion and cash from operations totaling $1.6 billion, these metrics paint a picture of a company that is adapting well to a challenging environment. For long-term investors eyeing a hold for three to five years, PayPal presents a promising growth opportunity amidst its transformation.

2. Chewy (NYSE: CHWY)

Next up is Chewy, the e-commerce darling catering to pet owners. Chewy has experienced a remarkable 67% surge in its stock price over the last six months. Once a pandemic favorite, the company continues to capture investor interest through innovative strategies and robust sales performance.

Chewy’s extensive product lineup, ranging from pet food to health insurance, positions it uniquely in the growing pet care market. Recently, Chewy launched brick-and-mortar veterinary clinics, tapping into a new revenue stream while reinforcing its brand loyalty among pet owners. The expansion of Chewy Vet Care is proving to be an effective customer acquisition strategy, with indicators suggesting it’s boosting the company’s overall sales per active customer.

In the latest earnings release, Chewy reported a 2.6% rise in net sales to $2.86 billion, with net income skyrocketing by a staggering 1,380% to over $299 million. Notably, 78% of the sales were from its Autoship service—recurring deliveries beloved by pet owners. Given that 85% of Chewy’s net sales stem from consumables and health products, this represents a strong, non-discretionary spending category that supports consistent revenue growth.

With Chewy now eyeing international markets, having recently expanded its platform to Canadian pet owners, the growth story is far from over. Investing in Chewy now could unlock substantial long-term value as it captures more of the expansive pet care market.

Conclusion

In a market teetering on uncertainty, investing in solid growth stocks like PayPal and Chewy can provide your portfolio with a much-needed boost. With their respective innovative strategies, product diversification, and competitive positioning, these companies are not just surviving but thriving. Whether you opt for one or both, your $500 could serve as a stepping stone toward unlocking incredible growth potential. Keep an eye on these stocks as they navigate the next phase of their journey. Happy trading!