Small investments can go a long way in the stock market, even with less than $25, as some companies are currently trading at affordable prices. Exelixis and Adyen are two of those companies.
Exelixis, a mid-cap biotech firm, has managed to become a leader in a small niche of the oncology market, thanks to its crown jewel Cabometyx, which treats some forms of kidney and liver cancers.
Meanwhile, Adyen, a Netherlands-based fintech firm, has attracted the business of many multinational corporations, offering integrated payment processing solutions across online and brick-and-mortar stores.
Exelixis: A Leader in Oncology
Exelixis generated most of its revenue from Cabometyx, which saw an increase of about 12% YoY in 2022, earning $1.6 billion for the company. While the biotech’s dependence on Cabometyx may become problematic, its future relies on developing cancer medicines. The company’s goal is to duplicate the accomplishment it had with Cabometyx by focusing on various types of cancer that lack effective treatments.
Exelixis is currently running phase 3 clinical trials for its most advanced non-Cabometyx candidate, zanzalintinib, which targets advanced renal cell carcinoma and metastatic colorectal cancer. The company is conducting dozens of clinical trials and exploring new indications for Cabometyx while also researching several other candidates in their early stages of study.
Recently, Exelixis announced a $550 million share repurchase program, which lifted its stock price. Despite a 13% decline in the stock’s value over the past year, its shares are currently trading at just below $19.
Exelixis has a knack for developing cancer medicines, and given that Cabometyx is still going strong, investors should consider buying shares of the company.
Adyen: A Growing Fintech Company
Adyen offers payment processing solutions across online and brick-and-mortar stores, various payment methods, and multiple countries, as well as risk management solutions, all in a single integrated platform. The company’s financial results are susceptible to economic challenges, but Adyen has managed to perform well.
In the second half of 2022, Adyen processed 421.7 billion euros ($458.4 billion) in payment volume, a 41% YoY increase. Adyen experienced a 30% YoY increase in net revenue to 721.7 million euros ($784.5 million), and its net earnings per share of 9.08 euros ($9.9) were 5% higher than the previous fiscal year’s comparable period.
However, Adyen’s bottom-line growth was not as impressive as its top line due to increased expenses, particularly in wages and salaries, which nearly doubled for the year.
Adyen is ramping up its investments for the future, hurting its bottom line but offering long-term benefits. Within the company’s unified commerce payment solutions, it still sees plenty of room to grow in the U.S., where it generates less than half of its revenue.
Adyen continued its expansion into new regions by launching its services in Japan and Mexico during the second half of 2022. Adyen’s strategic expansion into new regions, coupled with the growing trend of e-commerce replacing traditional brick-and-mortar retail sales, positions the company for long-term growth. With shares currently trading at a reasonable price of $15.57, it presents an attractive opportunity to invest in the future growth potential of the company.
Investing in stocks doesn’t require a lot of start-up capital, and even small and regular investments can go a long way. Exelixis and Adyen are two affordable companies worth considering for those looking to invest with less than $25. Exelixis is a promising investment due to its focus on developing cancer medicines and its track record of success with Cabometyx.
Similarly, Adyen’s unified commerce payment solutions and focus on long-term growth make it a strong investment opportunity. Investors should always do their due diligence and research companies thoroughly before making any investment decisions, as stock prices can be volatile and past performance does not guarantee future results.
