The best stock to invest $1,000 now

The stock market seems not the most friendly investor right now, with three main benchmarks - S&P 500this Dow Jones Industrial Averageand Nasdaq Composite Materials - Since the beginning of this year. Worries about Donald Trump's plan to impose tariffs on imports have stopped the positive momentum of indexing over the past two years. The concern is that responsibilities will raise prices and weigh economic growth.

Although Trump temporarily stopped tariffs to allow negotiations with the country and even announced a first deal with the UK - we are still in the early stages of negotiations with other countries, so we don't know the final tariff impact yet. But that's some good news. For long-term investors, these uncertain times are At that moment invest.

That's because you can buy quality, mature companies, and even cheaper at reasonable prices. Let's look at the best stocks to invest $1,000 now. With this number even smaller, you can participate in all of the following, or decide to bet just one.

Image source: Getty Images.

Not every day will find shares in top artificial intelligence (AI) chip companies at a cheap price. Earlier this year Nvidia (NASDAQ: NVDA) Stocks trade 50 times forward earnings estimates, but after the stock price falls, these stocks are now trading at 26 times estimates. Nvidia was last time this was cheaper a year ago.

So, why jump in now? Despite today's economic uncertainty, the AI ​​boom continues. In fact, analysts predict that the AI ​​market will reach $2 trillion in less than 10 years. NVIDIA should be the first to benefit as it dominates the AI ​​chip market, and the company's focus on innovation could put it in this lead.

A few months ago, Nvidia successfully launched the latest Chip Architecture Blackwell to meet extraordinary demand and has a roadmap for annual issuance over the next two years. The technology giant has created record revenue levels and has a larger gross margin at high profit margins. Nvidia has $43 billion in cash to support its fast-paced development. All of this makes NVIDIA now unable to join any growth-centric portfolio.

Target (NYSE: TGT) In recent years, it has suffered in recent years due to tough times for consumers, but over the years, the company has still increased revenue and has the need to maintain long-term growth. The retailer uses the pandemic to maximize shopper convenience, increasing its digital sales and same-day delivery options.

TGT Net Income (Annual) Chart
YCHARTS's TGT Net Income (Annual) Data.

The company has also invested in refurbishment of stores and focused on using its stores to quickly fulfill digital orders. Target's efforts have led to nearly $30 billion in sales growth over the past five years. Another element that should set the retail giant for long-term success is its solid portfolio of private labels. The company has over 40, and about a quarter of people bring in at least $1 billion in sales each year. These brands are particularly attractive to Target because the company has complete control over the production and marketing of these goods, making them low costs and high profits.

The target stock price has fallen 57% over the past three years. However, I think this is a great opportunity to get this future winner, especially with only 10x forward earnings estimates today, the lowest for at least three years.

Amazon' (NASDAQ: AMZN) The e-commerce and cloud computing businesses have benefited greatly from the decisions made a few years ago.

I will start with e-commerce. The company improved its cost structure and turned to a national fulfillment model. This has helped Amazon reduce overall costs and bring products closer to customers' moves is reducing service costs. And Amazon is not done yet: it is now improving its inbound network (the system that brings the product to fulfillment centers) and says that this should lead to further savings.

As for cloud computing, Amazon Web Services (AWS) has invested heavily in AI, with the company running at $117 billion in annual revenue. AWS, the world's number one cloud provider, offers customers a wide range of AI products and services, from top Nvidia chips to its in-house designs that can be provided to cost-conscious customers. And, don't forget Amazon Bedrock, the fully managed AI service AWS has.

Recently, e-commerce and cloud businesses have been growing steadily on Amazon. In the most recent quarter, net sales rose 9% to more than $155 billion. Amazon's main decision should keep this action and benefit profitability in the coming quarters. Now only estimates 31x forward earnings, this stock is a great place to park your $1,000.

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John Mackey, former CEO of Amazon's subsidiary Whole Foods Market, is a member of the board of directors of Motley Fool. Adria Cimino has positions on Amazon and Target. Motley fool has a place and recommends Amazon, NVIDIA and TARGET. Motley Fool has a disclosure policy.

Currently, the best stocks that initially invested $1,000 were originally published by Motley Fool