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

While the market has continued its bullish run this year, not every stock has participated. One sector where investors can still find some nice bargains is the consumer space. With just a small amount of money, like $1,000, you can start picking up shares in some attractive consumer stocks that are on sale.

Let's look at three stocks to buy now.

Amazon

Amazon (NASDAQ: AMZN) has been a laggard this year, with the e-commerce and cloud computing giant's stock stuck in neutral. That has left it trading at a forward price-to-earnings (P/E) multiple of below 29 times, which is a big discount to the over 39 times multiples of Walmart (NASDAQ: WMT) and Costco (NASDAQ: COST).

Operationally, the company has been performing well. It grew its North American e-commerce sales by 11% last quarter, outpacing the revenue growth at both Walmart and Costco. On top of that, the company's investment in artificial intelligence (AI) and robotics is leading to strong operating leverage, with the segment's operating income soaring 28% in the third quarter.

Meanwhile, Amazon Web Services (AWS), its cloud computing unit, saw growth accelerate to 20% last quarter. That should continue as Amazon is pouring money into the segment to build out data center infrastructure to capture increasing AI demand. Its Project Rainier campus for Anthropic is still ramping up, and it just signed a big deal with OpenAI. Given the opportunity in front of it, the stock is on sale.

Chewy

Trading at a forward P/E of just 21 times and a price/earnings-to-growth (PEG) ratio below 0.7 times (with below 1 times considered undervalued), Chewy's (NYSE: CHWY) stock is on sale. The company has one of the most attractive and defensive businesses in retail, selling largely pet food and other pet essentials that customers need to buy on a regular basis. Meanwhile, 84% of its sales come from Autoship customers (note that this does not mean all of these sales are autoshipped).

The company has been seeing strong growth, with revenue climbing more than 8% each quarter so far this year. Chewy has been adding new customers, while also seeing its customers' average spend increase. Autoship sales, meanwhile, soared nearly 13.6%.

Chewy has also been expanding its gross margins, which increased by 50 basis points in Q3. The margin expansion was driven by its sponsored ad business. The company continues to push into private label offerings and pet pharmaceuticals, which both have higher margins. The company has also taken another page out of Amazon's book with its Chewy+ paid membership program, and it just increased the price from $49 to $79.

Image source: Getty Images.

e.l.f. Beauty

Tariffs have taken a bite out of e.l.f Beauty (NYSE: ELF) this year, but the company's long-term growth story remains intact. The stock is cheap, trading at a forward P/E of less than 22 times and a PEG below 0.6 times.

The company has done a great job of disrupting the cosmetics industry over the past several years, taking a huge share in the mass-market cosmetics space. It has now increased its market share for 27 straight quarters, and management believes e.l.f. can still double its 13% market share in the U.S. It has a significant opportunity as it expands internationally, as well.

However, its most significant opportunity lies with its recent acquisition of Rhode. The premium skincare brand has grown rapidly despite minimal marketing and distribution, and a small product portfolio. The brand just launched at Sephora to great fanfare, and eventually, e.l.f. will look to expand the brand to other retailers, like Ulta Beauty.

Meanwhile, the company has only carried about a dozen or so items, so there is an opportunity to increase its product portfolio, as well. Overall, e.l.f. has a long runway of growth with Rhode in the coming years as it expands Rhode's product portfolio, increases its brand awareness, and gets its products into more stores.

Geoffrey Seiler has positions in Amazon, Chewy, and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Chewy, Costco Wholesale, Ulta Beauty, Walmart, and e.l.f. Beauty. The Motley Fool has a disclosure policy.