Three Stocks That Anyone Can Buy Now With $20 (Part-2)

Second, Chewy is adding veterinarian services. Leveraging its strong brand in this high-margin service market could boost long-term revenue. The company's increasing advertising sector could provide high-margin revenue in the future.  

Shares have a 0.6 price-to-sales ratio. That could mean investors overlook high-margin service revenue's potential to boost growth and focus on the company's short-term strain.  

3. Sirius XM Sirius XM Holdings (NASDAQ: SIRI) isn't your normal radio operator. Unlike most satellite radio companies, it doesn't advertise. Due to 34 million paid users, its revenue is more reliable during economic turmoil.  

Despite a few years of stagnation, that subscriber base can grow. Only 1.6% of subscribers left in the fourth quarter. Free trials for new car buyers drove the top of the funnel, which rose to 7.2 million from 6.8 million at year's end.

Streaming is Sirius XM's biggest danger. In 2019, it acquired Pandora for such purpose, but Pandora remains a modest portion of its company. Due to lower revenue-share and royalty fees, satellite radio subscriptions generate more money than streaming.  

Sirius XM invests in unique content and improves its marketing and positioning to counteract streaming. Working with carmakers to install its latest equipment has increased self-pay customer conversion rates.  

Sirius XM trades at a 12.1 forward price-to-earnings ratio despite solid operating outcomes. Warren Buffett, who invested $145 million in the stock directly and roughly $3 billion in Liberty SiriusXM (NASDAQ:  

LSXMA) (NASDAQ: LSXMK), liked that pricing. The company's modest growth and cost advantages make it worth adding to your portfolio at its current price.  

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