Got $1,000? 3 Stocks to Buy Now While They're on Sale.

Source The Motley Fool

These are scary times to be sure. The Nasdaq Composite entered bear market territory, while a bunch of individual stocks have fallen more than the requisite 20%. It doesn't feel like there's any end to the volatility in sight, either.

And yet, as most veteran investors can attest, times like these are exactly when you want to be bold. While the market may or may not be at its ultimate bottom yet, that doesn't really matter in the long run. What matters right now is that you can find some incredible bargain stocks that will likely be priced much higher within a few years.

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If you've got an extra $1,000 -- or any other amount -- you can commit to some long-term opportunities, here are three of your best bets.

1. British American Tobacco

It's admittedly cliché to buy so-called "vice stocks" in times of economic weakness. Yet, the premises of most clichés are rooted in truth. Consumers might postpone the purchase of a car or cancel a vacation if their financial futures are a little uncertain. But most people do continue to pay for their more affordable comfort-providing habits. This, of course, includes the use of tobacco products.

Enter British American Tobacco (NYSE: BTI).

Just as the name suggests, the London-based company makes cigarettes, smokeless tobacco, and increasingly, vaping or heated-tobacco products. Its international brands include Lucky Strike, Kool, and Pall Mall, but it's also the name behind U.S. brands like Newport and Camel. The Vuse and Glo brands are part of the British American Tobacco family as well.

It's obviously not a high-growth business. In fact, the tobacco industry is technically shrinking (albeit slowly). Unit sales of this company's cigarettes actually fell 5% year over year in 2024, which wasn't fully offset by the growth of newer vaping and heated-tobacco products; price increases were the only reason the company's top line was able to grow. This dynamic's been in place for a while now, too, and isn't apt to end anytime soon, if ever.

There could be many years -- perhaps decades -- of tremendous cash flow still left to plug into here though, which materializes for shareholders in the form of dividends and stock buybacks. While ever-changing exchange rates don't allow for unwavering annual dividend growth for U.S.-based owners of this particular American depository receipt (ADR), the native London-exchange-based version of this stock has seen consistent yearly growth of its payout, underscoring the company's resilience.

You'd be plugging into this ADR while its forward-looking dividend yield stands at about 7.3%, by the way, thanks to the stock's recent lull. This above-average yield becomes even more valuable when the market's offering little opportunity for capital gains.

2. Starbucks

Speaking of vice stocks, are consumers going to give up their favorite caffeinated treats just because money may be getting a bit tighter? Actually, the majority of investors seem to think they will, given Starbucks (NASDAQ: SBUX) shares' 28% tumble from their February high.

Although some of March's weakness can be attributed to (more) disappointing same-store sales during the quarter ending in December paired with lackluster guidance, the potential impact of Brazil's droughts on the global supply of coffee beans has also weighed on the stock. Most of the steep sell-off since the beginning of this month, however, reflects worries about the fallout from newly enacted tariffs. And trade war target China is home to nearly 7,700 of Starbucks' 40,576 total worldwide stores.

The thing is, matters often have a way of turning out to not be quite as bad is initially feared. The coffee house business is no exception.

Then there's relatively new CEO Brian Niccol.

Niccol's admittedly inherited a challenge at a terrible time. After two different CEOs in less than two years (and technically three over the span of six years), the company was looking, acting, and performing like an outfit without much clear direction or compelling leadership.

That should be changing soon. After taking the helm in September and getting a feel for what's working and what isn't, Niccol laid out a turnaround plan that looks and feels right. His aim specifically focuses on empowering its baristas, "reestablishing Starbucks as the community coffeehouse," and reminding consumers what makes this brand so uniquely special.

There's not been enough time for this plan to fully take hold, and economic turmoil in the meantime has undoubtedly challenged this reinvigoration effort.

Given Niccol's success with making Chipotle Mexican Grill the company it became while he led the restaurant chain between 2018 and last year though, he's arguably the right guy to lead Starbucks' turnaround effort. More than that, with Starbucks stock down as much as it is, now's the right time to bet on his plan.

3. The Trade Desk

Finally, add The Trade Desk (NASDAQ: TTD) to your list of beaten-down stocks to buy with $1,000 while they're still on sale.

If you're not familiar with the company, The Trade Desk is primarily an advertising technology outfit. And a much-needed one. See, the days of theme-minded promotions in topical magazines or television ads that jibe with a particular TV program are over. The internet has dramatically changed the advertising business, largely thanks to the details it can provide for any and all consumers. The advent of the internet also allowed ad-buying to become more of a self-service, "programmatic" process.

Problem? Navigating all these options and data can be complicated. The Trade Desk helps uncomplicate these things. Last year's revenue of nearly $2.5 billion -- up 25% from 2023's top line -- says as much.

Not everyone is necessarily bullish on this company and its tech right now. Shares are down more than 60% from February's high mostly because The Trade Desk's fourth-quarter sales fell well short of estimates, marking the first time the company's missed any top-line expectation.

Alarming economic developments in the meantime only fanned the bearish flames. But that makes sense superficially. Companies cut back on spending when and where they can when the economy weakens. The Trade Desk's tech seems nice to have, but isn't necessarily a must-have if corporations are looking to dial back their expenditures.

This assumption isn't necessarily accurate, though. It's just as arguable that companies make a point of investing aggressively in marketing tools that offer the most bang for their buck. And in the right hands, The Trade Desk can allow its users to stay ahead of competitors on the advertising and promotions front when doing so matters the most.

And for what it's worth, that's exactly what analysts expect in the foreseeable future -- once The Trade Desk's customers and prospects get a better feel for its recently reorganized structure that empowers them with a better programmatic ad-buying experience. The analyst community is calling for sales growth of around 20% this year and next, and then again the year after that. These same analysts also say this stock's worth nearly $103 per share, up more than 120% from its recent price.

Should you invest $1,000 in British American Tobacco right now?

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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Starbucks, and The Trade Desk. The Motley Fool recommends British American Tobacco P.l.c. and recommends the following options: long January 2026 $40 calls on British American Tobacco, short January 2026 $40 puts on British American Tobacco, and short March 2025 $58 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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