Key Points
SoFi stands out in the crowded digital-bank sector due to its broad array of services and tools.
Lemonade is moving toward profitability while sustaining strong top-line growth.
Nu has many growth drivers, including adding new customers and entering new markets, and the opportunity is wide open.
10 stocks we like better than SoFi Technologies ›
The market is back to strong growth this year as tariffs, inflation, and increasing unemployment don't seem to be derailing it. The S&P 500 is up 13% year to date, and it's a great time for growth investors to buy great stocks that are moving up.
Even if you only have $100 to invest today, you can take part in some excellent growth stories. If you have $100 to invest monthly, you will be able to benefit from the consistent additions and the magic of compounding over time. SoFi Technologies (NASDAQ: SOFI), Lemonade (NYSE: LMND), and Nu Holdings (NYSE: NU) are three top growth stocks to add to your portfolio, and you can buy at least a share of each for about $100 or less.
1. SoFi: A top digital bank
SoFi likes to call itself the only one-stop shop for digital money management. It sees itself as differentiated from the large pack of neo-banks because it offers a broad array of services, and that model resonates with an upwardly mobile class of younger consumers who want to engage with financial management from their smartphones.
Growth has been impressive. Adjusted net revenue increased 44% year over year in the second quarter, an acceleration. Management attributes the faster increase to an upward spiral that starts with an easy-to-use platform that attracts new clients; a complete assortment of services that generates higher engagement; and more money plowed back into the business to upgrade, add new tools, and become even more attractive.
It's also a low-cost model that breeds loyalty. There are no physical branches, and customers typically start out with one product, which means a relatively low acquisition cost. But as each customer signs up for more products, they come with a high lifetime value.
SoFi's target market is customers who are just getting started in managing their money, and this cohort has a long financial road ahead of it. It's no wonder the market sees tremendous opportunities here and is rewarding SoFi stock accordingly: It's up more than 225% during the past year.
Image source: Getty Images.
2. Lemonade: Insurance technology
Lemonade is another disruptor in its industry. It offers most types of insurance, but it's all built with artificial intelligence (AI), and customers are flocking to its online platform.
[SRC] https://finance.yahoo.com/news/best-growth-stocks-buy-100-083000413.html
