Though investing is typically a long game when you’re younger, short-term stocks can offer an interesting complement to your longer-term portfolio. Short-term stocks are stocks you’ll usually hold for only a few years (often even shorter) to get a high return in a short amount of time. Short-term stocks can give you an income boost for a goal in the near future, such as a down payment on a house. Here are three of the best short-term stocks that also provide opportunities for long-term investments, depending on your unique goals.
Alteryx (AYX)
If you’re looking for a stock that will set you up to make some quick, lucrative returns, take a look at Alteryx. Bonus points: This data analytics and automation company looks like it’s ready for some long-term wins, too.
AYX stock did poorly after the company’s management put out a terrible guide to second-quarter earnings in 2020. However, many of the assumptions in that report didn’t come to fruition. Instead, business confidence is recovering and consumer spending on the rebound.
If these trends persist, businesses will start spending again on data science platforms like the one Alteryx offers. You can’t usually find tech stock of this quality at such a low price. So, get in on this stock while it’s cheap, then ride the momentum for gain in the short (or long) term as it rebounds.
Dropbox (DBX)
Like our first pick, Dropbox offers the potential for great short-term returns as well as longer-term investments. In terms of short-term investing, Dropbox offers one of the best stocks you can buy right now for quick returns as it’s one of the most undervalued names in the booming work-from-home space.
If you’re not familiar with Dropbox already, they offer remote digital storage solutions for businesses and individuals. In the current climate of virtualization, it’s clear why Dropbox is positioned to stay relevant for a long, long time.
In fact, the company’s fiscal 2020 second-quarter results showed 16% revenue growth. That suggests that DBX stock is undervalued when compared to other companies getting in on the work-from-home action. That valuation discrepancy isn’t going to last forever, so you’ll want to invest before the stock pops.
Facebook (FB)
Facebook offers yet another great short-term stock that doubles as an ideal long-term buy as well. By now, Facebook is the largest digital advertising business out there. The company’s advertising business is set to sustain significant growth over the next few years. With revenue and profit primed to grow for a long time, investors can look forward to continued strength for this stock.
But if you’re looking for quick returns, the FB stock has Instagram Reels going for it. Instagram Reels could leverage the hype surrounding TikTok into increased Instagram engagement. If the growth Instagram Stories sparked is any indication, FB stock could accelerate higher thanks to Reels in the coming year.
Whether you take advantage of these stocks for quick returns or you decide to hold onto them for a longer period, these three companies provide unique opportunities for college-age investors.