Investing $5,000 can be a good amount to put into a growth stock because it can lead to significant long-term gains. If it can rise in value by 10% per year, it would take a little more than seven years for it to double your returns.
Rather than investing a few hundred dollars or less, a $5,000 investment can give you enough skin in the game to ensure you’re making a fair bit of money if you pick a good stock. Plus, investing $5,000 can give you an incentive to be more selective when picking an investment to add to your portfolio.
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Three stocks that I think could be good growth stocks if you have $5,000 to invest today are Pfizer (NYSE: PFE), ExxonMobil (NYSE: XOM), and Carnival Corp. (NYSE: CCL). Here’s why these can be ideal options for growth investors, particularly if you’re looking for good value buys, as well.
Although Pfizer’s sales declined by more than 40% last year (due to a drop in COVID-19 vaccine and treatment revenue), this is still a growing business that can potentially produce some attractive gains for investors in the long run. The company has been investing in its own drug development and expanded operations through acquisitions. By doing so, its business has become broader and less dependent on any single drug or category.
That being said, a huge opportunity for Pfizer is in weight loss medications. The company may be one of the best GLP-1 plays right now, which is why I think a $5,000 investment in the business could pay off significantly.
Pfizer is working on a GLP-1 weight loss pill, danuglipron, which has been showing progress in clinical trials, and management is optimistic that it will be among the first ones that regulators will approve. If that happens, it could be the growth catalyst that investors need to get bullish on the stock again. The company has decided to go forward with a once-daily version of danuglipron following encouraging phase 2b trial data.
It could still take multiple years before the drug obtains approval and starts generating meaningful revenue for Pfizer, but this can be a much safer way for investors to gain exposure to the highly competitive GLP-1 market, which could be worth more than $100 billion. With Pfizer, investors get a much more diversified business that’s focused on weight loss, oncology, and many other areas of healthcare.
The stock is trading down 10% year to date and near its 52-week low. It can make for a tremendous buy, as it’s trading at a forward price-to-earnings (P/E) multiple of less than 9, based on analyst estimates.
Oil and gas giant ExxonMobil is another potentially underrated growth stock to buy today. Although investors may be bearish on the outlook for oil as a future energy source, it’s still a dependable one that consumers will rely on for years to come. Exxon recently completed an acquisition of Pioneer Natural Resources, which more than doubled its footprint in the highly desirable Permian basin.
While there will be volatility in the company’s earnings due to the price of oil, ExxonMobil, by getting bigger and more efficient, can be in an excellent position to generate strong profits for years to come. Over the past three years, the company has reported profits totaling around $115 billion.
The stock is trading at 13 times next year’s estimated earnings and could prove to be a bargain buy over the long haul.
Cruise-ship operator Carnival has been experiencing some fantastic growth in recent quarters as its business remains booming. It continues to post record numbers and boost its guidance accordingly. Revenue rose by 15% and totaled $7.9 billion for the third quarter (it ended on Aug. 31), while net income of $1.7 billion was up by 62% year over year.
Despite concerns about slowing travel trends, Carnival’s business remains robust and benefits from customers booking out far in advance. This gives investors confidence that the company’s ships will fill up and strong earnings numbers will follow. The company says that not only does 2025 look great, but that 2026 also is off to a record start.
Carnival’s stock has surged more than 40% this year. However, with a forward P/E multiple of just 15, it’s still a cheap stock to buy, given how well business is doing.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
