The Best Stocks to Invest $1,000 Right Now

Key Points

• Although Walmart disappointed with its quarterly earnings, it continues to strengthen its relationship with consumers through a broader, more comprehensive strategy.

• Rocket Lab brings something that the space launch business needed: profitability.

• Efficient computer processors are more important than ever. Arm Holdings is ready to meet this demand.

Do you have money ready to invest? It's easier said than done at the moment. Too many trades seem saturated and many stocks are overvalued.

However, if you are willing to consider less popular names, you will probably find something interesting.

Here are three of the best stocks to invest $1,000 right now. Each one is completely different from the other two, forming a balanced package of risk and reward.

1. Walmart

Walmart's shares fell more than 6% after reporting earnings of $0.68 per share against estimates of $0.76, mainly blaming tariffs.

But there is a reason why it has almost recovered from that drop. Investors recognize that its revenue growth of 4.8% (5.6% at constant currency) to $177.4 billion exceeded estimates of $176.2 billion, and the company raised its annual growth outlook.

Perhaps the most attractive aspect is how it is succeeding in areas that are not yet fully reflected in its financial results.

For example: advertising revenue through Walmart.com and its Vizio platform increased by 46% year-over-year and 31% in the crucial U.S. market. Although it does not disclose specific quarterly figures, its global advertising business reached $4.4 billion last fiscal year. This is less than 1% of its total sales, but it is high-margin revenue.

More importantly, it shows that Walmart understands that the current business model is to build a large consumption ecosystem that leverages its powerful brand.

In this same vein, its e-commerce revenue grew another 25% year-over-year, driven by in-store fulfillment and local pickup/delivery. This illustrates the retailer's ability to merge its online and offline offerings, similar to the 15.3% improvement in revenues from Walmart+ subscriptions.

Simply put, Walmart is becoming a one-stop solution for consumers and a machine for recurring income for shareholders, even though many still do not perceive it.

2. Rocket Lab

Although you know Walmart, you probably have never heard of Rocket Lab. However, you could benefit from their services.

As its name suggests, Rocket Lab puts satellites into orbit, specializing in cost-effective launches of relatively small satellites. Its reusable Electron rocket can carry up to 300 kg to low Earth orbit. So far, 70 successful launches have enabled the deployment of 238 satellites.

This type of solution represents an important part of the space future. Although Electron cannot carry heavy or medium payloads, that is only a fraction of the current and future need. As communication satellites decrease in size and weight while the demand for broadband connections and mobile telephony increases, a cost-effective launch solution like Electron —with an average launch cost of $7-8 million— is exactly what telecommunications companies and the military are looking for.

In addition, there is a potential catalyst in development. Rocket Lab is working on a medium-lift rocket called Neutron that can launch up to 14 tons, necessary for lunar or planetary missions.

And it's close. Although there is no firm date, the company claims that it will launch its first Neutron rocket before the end of the year. The launch platform in Virginia that will be used was officially presented last month.

Interested investors should prepare for volatility. Not only do news events easily affect this small company with a market capitalization of only ( billion $20 , but its current lack of profitability increases unpredictability. However, it is worth considering.

3. Arm Holdings

Finally, add Arm Holdings to your list of great stocks to buy if you have $1,000 to invest.

It's not exactly a household name. However, you probably rely on its products regularly.

In summary, Arm designs computer processors. And it only designs them. While technology companies like Nvidia or Intel outsource the production of their chips to manufacturers like Taiwan Semiconductor, Arm Holdings licenses its knowledge to companies like Nvidia and Intel. This business model does not generate large revenues; Arm only billed about ) billion last year. However, they are high-margin and consistent revenues.

What makes Arm's technology so special? In a word: efficiency. Arm's processing architecture consumes considerably less electricity than rival chips.

The Graviton processor from Amazon Web Services based on Arm, for example, is approximately 60% more energy efficient than other comparable processors, resulting in a 20% lower cost of use. Apple has also opted for processors designed by Arm in its new iPhones, capable of performing artificial intelligence tasks from the device. Without Arm's expertise, the intensive use of the iPhone's AI capabilities would quickly drain the battery.

Where Arm Holdings will have the biggest impact is in the data center market, which currently consumes impressive amounts of electricity. The market is noticing it. Leveraging its latest architecture, Google introduced its first Arm-based CPU, called Axion, for its cloud computing customers at the beginning of last year.

It is not surprising that Arm expects its share of the data center processor market to increase from 15% last year to 50% by the end of this year. This would just be the beginning of significant growth. Analysts believe that Arm's revenues will grow by more than 20% annually for at least the next three years, which will nearly triple profits during this period and justify what now appears to be a high valuation.