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The Best Stocks to Invest $1,000 in Right Now

Are you just as afraid of a market pullback right now as you are of missing out on upside? If so, you're not alone. This is a confusing environment for investors. Major names like Nvidia and Home Depot are sending mixed messages, while the market itself seems to be waiting for more clarity about tariffs and the Trump administration's trade war.

There are some tickers with bullish backstories, though, that are bigger than any environmental or economic backdrop. You just have to look a bit off the beaten path to find them.

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If you've got $1,000 -- or any other amount of money -- lying around available to invest, here are three solid prospects to consider.

An investor considering stocks to buy.

Image source: Getty Images.

CRISPR Therapeutics

Biotech stocks can be tricky investments to handle. Oftentimes, you're betting on a potentially game-changing premise well before it's profitable, or even before there's a marketable product. That's obviously risky. But the potential upside can be tremendous.

CRISPR Therapeutics (NASDAQ: CRSP) is not yet profitable, but the underlying science that makes the drugs it's currently developing possible holds enough promise to eventually get the company out of the red and into the black.

CRISPR Therapeutics specializes in gene editing. Company co-founder Dr. Emmanuelle Charpentier developed a way to cut a strand of damaged DNA and then force the genetic code's own built-in repair process to fix what's broken. While CRISPR's Casgevy (for the treatment of sickle cell disease and beta thalassemia) is its only approved drug based on this science, this biotechnology has a range of potential applications. Treating cancer and autoimmune diseases is arguably the biggest.

That any drugs based on this science have been approved bodes well for the concept, and CRISPR's got a total of five different clinical trials underway right now. Those are what most interested investors are eyeing. Ditto analysts, who collectively sport a consensus price target of $77.38, more than twice the stock's present price.

So why are CRISPR Therapeutics shares still drifting lower from their 2021 peak, knocking on the door of new 52-week lows? That's just part of the challenge of buying, holding, and even selling biotech stocks. Sometimes they reflect potential revenue and earnings too soon. Other times, investors lose interest when they've waited a little too long for results.

Don't overthink it, though. Just take a step back and recognize that analysts expect revenue to jump from $50 million this year to nearly $200 million next year and then to more than double again the year after that. This explosive growth should come on the heels of at least one more drug approval, although more than one approval is just as possible.

This growth will presumably stir up a bullish tailwind for the stock.

Palo Alto Networks

There's no sensational singular bullish argument for owning a stake in Palo Alto Networks (NASDAQ: PANW). There are dozens of solid reasons, though.

On the unlikely chance you've never heard of it, Palo Alto is a cybersecurity company. Firewalls, VPNs, threat detection, and breach response are all in its wheelhouse. There's nothing unique about its offerings, even if the company is the biggest and best-known name in the cybersecurity industry, that's more than reached full maturity.

That's not necessarily a bad thing, however, given the nature of this business.

Think about it. As the world uses computers more and more, it's going to need more and more cybersecurity solutions. That's why Precedence Research believes the global cybersecurity market is set to grow at an annualized pace of 12.6% through 2034. Palo Alto's top line is expected to slightly outpace this industry growth based on the consensus analyst forecast, but only slightly. There's little doubt that it will be able to leverage its size to achieve at least its fair share of this growth, though. Again, cybersecurity is a business that's unlikely to go away.

Don't tarry if you're interested. While this stock looks a bit frothy following its big rebound from its March low, it's still only priced around its early-2024 peak. The lack of net forward progress since then is sure to be catching the eye of many would-be buyers.

NextEra Energy

Finally, add utility name NextEra Energy (NYSE: NEE) to your list of stocks to buy with an idle $1,000.

Utility stocks are usually anything but exciting. That's because the highly regulated industry is anything but a high-growth one, and the business itself hasn't changed much since its inception. Ditto its individual companies. In many cases, these outfits are not only working with the same infrastructure they were working with decades ago, but they're also grappling with legacy capital structures and mindsets.

Not NextEra Energy, though. Although its roots are traditional, over the course of the past several years, this organization has made a deliberate effort not just to embrace cleaner, renewable energy sources, but also to evolve its utility business in a way that makes sense in the modern era. As of the end of last year, more than half of its power production comes from renewables like wind and solar, while roughly one-third comes from natural gas. Another 8% is nuclear, which President Donald Trump just gave a boost to last month with four executive orders aimed at revitalizing the U.S. nuclear energy sector.

Notice fossil fuels aren't part of the mix.

And yet, even though the company is spending more on energy infrastructure than any other utility outfit, it's still profitable.

This utility outfit is largely future-proof. That is to say, even though how utilities will be regulated and restricted by future emissions mandates isn't completely clear right now, all of NextEra Energy's future power production will likely satisfy whatever requirements await.

There won't be any explosive growth from NextEra, in the near or distant future. There should be plenty of reliable growth here, however, regardless of the economic environment.

There's also a respectable amount of reliable recurring income. Newcomers will be stepping into this stock while its forward-looking dividend yield stands at just under 3.4%. Not bad.

That's based on a dividend, by the way, that's more than doubled over the past 10 years and been raised every year for well over two decades. Even if dividend income isn't your big goal right now, this is reliable cash flow that you can use to buy stocks as other opportunities arise.

Should you invest $1,000 in Palo Alto Networks right now?

Before you buy stock in Palo Alto Networks, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CRISPR Therapeutics, Home Depot, NextEra Energy, and Nvidia. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

4 Top Cybersecurity Stocks to Buy in May

While on-again, off-again tariffs have created a lot of uncertainty and volatility in the stock market, one set of companies that should see minimal impact one way or the other are cybersecurity providers. After all, cybercriminals and hackers aren't downsizing their attacks due to tariffs.

Let's look at four top cybersecurity stocks that investors might want to consider buying this month.

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Artist rendering of a cybersecurity lock.

Image source: Getty Images

1. Palo Alto Networks

Palo Alto Networks (NASDAQ: PANW) is in the midst of a transformation from being largely a provider of next-generation firewalls to becoming a comprehensive cybersecurity platform. Last year, it embarked on a new "platformization" strategy where it stopped selling new point solutions and began consolidating customers onto one of its three main cybersecurity platforms. To do this, it gave away some of its services for free to entice customers to ditch disparate point solutions and centralize on its platforms.

Thus far, the strategy appears to be working, with 1,150 of its top 5,000 customers now using one of its platforms. It hopes to have 2,500 to 3,500 platformization customers by fiscal year 2030. Its main platform is network security, but it has also been seeing a lot of growth coming from its threat detection and response solution Cortex, and its cloud security solution Prisma Cloud.

While its platformization strategy temporarily slowed its growth, it was the right move for the long term, and investors should be rewarded.

2. CrowdStrike

CrowdStrike (NASDAQ: CRWD) is another cybersecurity company that should benefit from the trend of companies looking to consolidate their cybersecurity needs onto a single platform. The company is best known as the leader in endpoint security, which is the protection of devices connected to a network, such as a smartphone or laptop. In fact, it is regularly at the top of Gartner's rankings for best endpoint security.

The company offers a comprehensive suite of cybersecurity protection, including threat intelligence, zero trust, logscale SIEM (log management and threat detections), and cloud security. And its flexible licensing and procurement service, Falcon Flex, is helping drive adoption of its modules.

Falcon Flex gives customers the flexibility to quickly deploy CrowdStrike solutions when and where they need them. Last quarter, 67% of CrowdStrike's customers deployed five or more of its modules, while 21% used eight or more.

With the impact of its highly publicized information technology outage now in the rearview mirror, and customer commitment packages (a set of incentives offered to affected customers, including discounts, subscription extensions, and other compensation deals) rolling off the books later this year, the company should begin to see growth start accelerating. That makes this a good time to jump into the stock.

3. Zscaler

Zscaler (NASDAQ: ZS) is a leader in zero-trust security, a model based on the principle that no user or device should be trusted. Instead, access to applications and data must be continuously verified, authorized, and revalidated to ensure security at every step.

Zero trust is becoming an increasingly important part of the cybersecurity landscape, and the company has been doing a great job of upselling its customers to new zero-trust systems. These include its Zscaler Private Access, which is being used to replace virtual private networks (VPNs), including within the federal government. Other products gaining traction include Zscaler Digital Experience, Zero Trust for Branch and Cloud, and artificial intelligence (AI) analytics.

It has also moved into data security to help prevent data loss in public AI apps. Last quarter, it saw a 40% increase in annual contract value for its data security products.

Overall, the company is growing, with revenue climbing 23% year over year last quarter. Its net dollar retention rate was 115%, showing its strong growth within its existing customer base. With zero trust and data protection becoming more important, Zscaler has a bright future.

4. SentinelOne

SentinelOne (NYSE: S) is a fast-growing endpoint cybersecurity company, trading at a low valuation. Its forward price-to-sales (P/S) multiple is only 6.6 times, despite having 29% revenue growth last quarter.

The company has a big opportunity in the second half of the year, when personal computer (PC) vendor Lenovo will begin shipping its computers with SentinelOne's Singularity Platform installed. Lenovo is the world's largest enterprise PC vendor, selling 61.8 million PCs last year, so this is a big deal for SentinelOne.

The company has also been doing a good job of upselling its Purple AI, which uses AI to help analysts detect complex security threats through the use of natural language prompts. It predicts that Purple's use of hyper-automation to enhance security operations by automating complex, multi-step processes will become "the bedrock for agentic AI in cybersecurity." Purple can also be run across vendor platforms, including Zscaler and Palo Alto.

Given its growth, the opportunities in front of it, and its valuation, SentinelOne is a stock investors can look to add to their portfolios.

Should you invest $1,000 in Palo Alto Networks right now?

Before you buy stock in Palo Alto Networks, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Geoffrey Seiler has positions in SentinelOne. The Motley Fool has positions in and recommends CrowdStrike and Zscaler. The Motley Fool recommends Gartner and Palo Alto Networks. The Motley Fool has a disclosure policy.

Why CrowdStrike, Palo Alto Networks, and Fortinet Stocks Rallied This Week

Shares of cybersecurity leaders CrowdStrike Holdings (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT) rallied 13%, 6%, and 13%, respectively, this week as of noon ET on Friday, according to data provided by S&P Global Market Intelligence.

The primary reason for these increases is related to a 90-day pause on the newly proposed tariffs that the United States announced, prompting a virtually marketwide rally.

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However, there was also company-specific news that added to this rally.

On Monday morning, Wedbush Securities listed CrowdStrike and Palo Alto Networks as two "defensive" plays in an era of potentially higher tariffs. Then, on Thursday, HSBC upgraded Palo Alto to a hold from a sell while reiterating that Fortinet was its top cybersecurity stock.

Here's why I can't help but agree with these bullish notions on these three stocks.

A trio of defensive growth stocks

These three cybersecurity leaders grew sales between 14% and 25% in their most recent quarters. Despite their status as growth stocks, it is also fair to call each of the businesses a defensive stock, as Wedbush stated.

A recent survey by cybersecurity provider Red Canary of security leaders at an array of businesses found that 63% of companies increased their cybersecurity spending. Still, only 37% thought it was enough to be entirely secure. Cybersecurity spending remains crucial for businesses, with numerous hacks costing hundreds of millions of dollars (if not over a billion) in recent years.

And the need will only become more pressing as we continue to move into an artificial intelligence-influenced world. The same Red Canary survey found that roughly 62% of security leaders said that AI threats make it more challenging to keep their businesses safe.

Simply put, CrowdStrike, Palo Alto, and Fortinet offer investors the best of both worlds: high growth and defensive, recurring sales.

The case for CrowdStrike

CrowdStrike is best known for its leadership in detecting endpoint threats, and its cloud-based Falcon platform is quickly becoming a full suite of cybersecurity safeguards. Its AI-powered platform is a must-have for most of the biggest names in the business world and is currently used by roughly 70% of the Fortune 100, 18 of the top 20 U.S. banks, and 44 of the 50 U.S. states.

The company's newer products for identity protection, cloud security, and security information and event management grew by 70% to 140% since last year, so this notion of a full-suite platform continues to gain momentum.

The stock won't be confused as being cheap, trading at 84 times free cash flow (FCF). But management is forecasting $10 billion in annual recurring revenue (ARR) by 2031 -- up from $3.9 billion today -- so it could quickly outgrow this valuation.

The case for Palo Alto Networks

Palo Alto Networks has generated annualized returns of 26% since its 2012 initial public offering (IPO) while becoming a leader alongside Fortinet in firewall solutions. But this success didn't prevent the stock from being hammered in early 2024 as it shifted from individual solutions to a platform model, which it dubbed "platformization."

This adjustment meant it had to entice many existing customers to come along for the ride by temporarily offering deeply discounted solutions (if not free ones) while they acclimated themselves to the new setup. Just one year later, though, this shift seems to be a success.

The company grew sales, remaining performance obligations (RPO), and next-generation ARR solutions by 14%, 21%, and 37%, respectively, in its latest quarter, so it looks to have made the right move (so far).

It might be a leap of faith for investors to buy tech-dense cybersecurity offerings like Palo Alto, but it has several leadership ratings from Gartner's Magic Quadrant rankings across several niche categories.

Should sales and FCF growth accelerate to match the company's impressive 21% growth in RPOs (a forward-looking metric), it could prove to be a fantastic investment at 40 times FCF, thanks to its mission-critical offerings.

The case for Fortinet

Fortinet and Palo Alto are the two top dogs in their firewall niche. Like Palo Alto, Fortinet has delivered incredible 30% annualized returns since its IPO in 2009.

Both companies hold leadership rankings from Gartner in several cybersecurity categories, so they will always seem to be linked together.

One area where Fortinet is dissimilar -- in a good way -- from its two peers in this article is that it protects shareholder value better. Whereas CrowdStrike and Palo Alto have let their number of shares outstanding rise by 15% and 14% over the last five years, Fortinet has lowered its count by 5%.

This ballooning share count from CrowdStrike and Palo Alto stems from hefty stock-based compensation (SBC), which equals roughly 22% and 13%, respectively, of their total revenue. Meanwhile, Fortinet's SBC only accounts for 4% of revenue. This signals (in my opinion) that Fortinet does a better job of protecting shareholder value.

Fortinet works with 77 of the Fortune 100 and virtually all of the business leaders in each industry, much like CrowdStrike. This scale, paired with the fact that Fortinet has nearly twice as many U.S. patents as CrowdStrike and Palo Alto combined, hints that the company will be hard to disrupt anytime soon.

The stock trades at 39 times FCF, and management is guiding for more than 12% billings growth over the next five years. So it should be a great example of a defensive growth stock.

The final takeaway

All told, I believe buying a basket of this trio of defensive growth stocks might be the way to go.

Although they all compete with one another, the last five to ten years have shown that the rising tide of the cybersecurity industry -- which is growing by double digits seemingly in perpetuity -- is plenty to lift all three stocks' boats, helping them to beat the market.

Should you invest $1,000 in CrowdStrike right now?

Before you buy stock in CrowdStrike, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

HSBC Holdings is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in CrowdStrike and Fortinet. The Motley Fool has positions in and recommends CrowdStrike and Fortinet. The Motley Fool recommends HSBC Holdings and Palo Alto Networks. The Motley Fool has a disclosure policy.

4 Ways You Can Navigate the Stock Market Crash

With the S&P 500 (SNPINDEX: ^GSPC) ending last week down more than 10% in two days, the stock market experienced its first crash since March 2020, when the COVID-19 pandemic began to escalate. The culprit this time was the U.S. enacting punitive tariffs against much of the rest of the world and an ensuing trade war. These tariffs were even applied to two islands uninhabited by humans, with the Trump administration saying the duties were added so that other countries could not evade tariffs by shipping goods through the ports of these islands.

With the market in turmoil and a lot of volatility likely ahead, let's look at four ways investors can navigate the current market crash.

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1. Have liquidity

In a bear market or an impending bear market, one of the most important things investors can have is liquidity, or cash on the sidelines. By having available cash, investors can then take advantage of market dips.

If you're fully invested, consider selling some of your least favorite positions to raise some cash that can later be used to buy ideas you have more conviction in. If these are in a non-retirement account, you'd also get the potential benefit of a tax loss when you next file.

To be clear, you don't want to start panicking and just sell stocks. Instead, you want to look at this as an opportunity to high-grade (improve the quality of) your portfolio.

2. Create a list of high-quality stocks to buy

Another important thing you can do is create a list of high-quality stocks and the prices at which you'd start buying them. Undoubtedly, there have been stocks you've liked in the past, but their valuations were too high.

This could be highfliers like Palantir Technologies (NASDAQ: PLTR) or Cava Group (NYSE: CAVA) whose businesses are doing great but whose stock valuations just skyrocketed over the past year or two. Perhaps it could be stocks in industries that have always tended to have high multiplies, such as cybersecurity companies like CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW). There could also be blue chip tech names like Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) or Amazon (NASDAQ: AMZN) whose stocks have just gotten cheaper, given their collection of businesses and future prospects.

The key, though, is to gather a list of high-quality stocks you'd be comfortable owning over the long run. And then, when they reach your price target, be ready to start building positions in them. Just do the research beforehand so you're ready to pounce.

Artist rendering of bear market.

Image source: Getty Images.

3. Consider writing puts

A more advanced strategy to use in a down market is to write (sell) put options. By writing a put option, you collect a cash premium up front, but you are then obligated to buy that stock if the buyer exercises his option to sell it to you. As such, you want to do this only with stocks and at prices where you would want to buy them.

For example, if Amazon was on your list of stocks to buy at $150, you could write a put on Amazon stock with a strike price of $150 and a May 9 expiration and collect around $3.70 in premium. If the stock falls below $150 and the option is exercised, you'd own the stock at $150. Note that each option represents 100 shares. If Amazon doesn't fall to that price, you just collect the premium, which would be worth around $370 for each option.

This strategy's intention is twofold. One is to let you buy into a stock you want to own at a lower price. However, if the stock never reaches that price, you still earn some return.

The downside to this strategy is that it does tie up some capital, which you could potentially use elsewhere. That is why I prefer to keep the expiration dates short, at about a month.

In addition, if the stock blows past your price target on the downside, you are still obligated to buy at the strike price. This is most likely to occur if a major event happened when the market was closed, and it opened way down. However, the assumption we are using is that you'd be a buyer of the stock at the strike price regardless. The other disadvantage is that if the market does make a quick reversal, you would lose out compared to if you had jumped in right away and bought the stock.

However, this is a nice strategy to supplement your investments, allowing you to earn some extra cash as you wait for stocks to hit your buy prices.

4. Dollar-cost average with ETFs

Another strategy investors should consider is dollar-cost averaging. In this strategy, you make investments at set times and dollar amounts regardless of their prices.

This strategy works particularly well with exchange-traded funds (ETFs) such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the Invesco QQQ ETF (NASDAQ: QQQ). These two ETFs track major market indexes that have proven to be long-term winners. The Vanguard ETF tracks the S&P 500, which comprises the 500 largest stocks traded in the U.S., while the QQQ ETF tracks the Nasdaq-100, which is more tech- and growth-oriented.

With ETFs, you don't have to worry about individual stock research. You can buy an ETF that immediately gives you a portfolio of leading stocks. Consistently dollar-cost averaging into index ETFs is a great way to build long-term wealth, and a down market is a great place to start implementing this strategy.

Should you invest $1,000 in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $590,231!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 5, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet, Invesco QQQ Trust, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, CrowdStrike, Palantir Technologies, and Vanguard S&P 500 ETF. The Motley Fool recommends Cava Group and Palo Alto Networks. The Motley Fool has a disclosure policy.

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