In a bull market now in its fourth year, investors are continually seeking new opportunities with substantial growth potential. This article identifies three such companies—DraftKings, Fortinet, and Tencent—each trading below $100 per share, that present promising prospects. These firms exhibit robust revenue expansion, improving profit margins, and appealing valuations, positioning them as strategic acquisitions for those looking to invest in burgeoning sectors.
Detailed Report: Unveiling Investment Prospects in a Flourishing Market
As of October 22, 2025, the ongoing bull market continues its upward trajectory, defying macroeconomic anxieties and discussions of an AI market bubble. Over the past three years, the S&P 500 has seen an impressive 91.5% total return since October 2022. For new investors, or those actively reallocating capital, the search for high-potential, undervalued growth stocks remains critical. Three companies, DraftKings, Fortinet, and Tencent, stand out as particularly compelling, each with shares priced under $100, making them accessible to a wider range of investors.
First, DraftKings, a prominent player in the online sports betting arena, has solidified its leadership since the 2018 Supreme Court ruling legalized sports wagering. Leveraging its established brand from fantasy sports, DraftKings has made significant technological strides to enhance its sportsbook offerings. The company's extensive data resources are instrumental in developing novel betting options, expanding into new events, and refining promotional strategies. This data also aids in accurately setting odds and quickly identifying sophisticated bettors, thereby mitigating financial risks. Furthermore, its technology improves the user experience through innovative live betting features that complement sports viewership. With Grand View Research projecting a 12.8% average annual growth rate for online sports betting from 2025 to 2030, DraftKings is well-positioned for continued market share expansion. Despite potential competition from prediction markets, which DraftKings is exploring by applying to the National Futures Association (NFA), the company's stock, priced around $35, offers an attractive enterprise value-to-EBITDA ratio of less than 20 based on management's 2025 guidance. Its trajectory of double-digit revenue growth and expanding EBITDA margins suggests strong future earnings.
Next, Fortinet, a leading cybersecurity firm, initially gained recognition for its advanced firewalls, which integrated custom chips and software for superior network performance and security. Although recent hardware upgrade cycles did not meet management's expectations, Fortinet has achieved remarkable success in its Secure Access Service Edge (SASE) and Security Operations (SecOps) segments. SASE billings surged by 21% year-over-year, and SecOps grew by 31% in the latest quarter. These software-centric solutions represent a significant growth avenue, building upon Fortinet’s core hardware expertise. As software offerings, they generate high-margin recurring revenue and facilitate cross-selling opportunities, contributing to substantial revenue growth and margin expansion. As of the second quarter, SASE and SecOps collectively accounted for 35% of the company's total billings. Trading at approximately $83 per share, Fortinet's enterprise value-to-EBITDA ratio stands at about 25. Its consistent double-digit sales growth and expanding operating margins make it an appealing investment.
Finally, Tencent, the Chinese internet behemoth, powers WeChat (Weixin in China) and popular mobile games such as PUBG Mobile and Honor of Kings. The company has experienced strong growth in its advertising sector, with marketing services revenue increasing by 20% last quarter. Management attributes this success to AI-driven advancements in ad technology, optimizing everything from ad creation to placement and measurement. Beyond its existing revenue streams, Tencent is actively pursuing new growth opportunities in cloud computing and artificial intelligence. Earlier this year, the company outlined plans to allocate excess cash from its social networking and gaming divisions to invest in AI initiatives. While some investments, like advertising algorithm improvements, have already yielded returns, many AI developments are long-term strategic bets. Notably, Tencent managed to increase its free cash flow despite doubling its capital expenditures year-over-year in the second quarter. With its stock trading around $80 per share, Tencent boasts a price-to-earnings multiple of approximately 21 times analysts' consensus estimate for 2025 earnings. Its double-digit revenue growth, expanding margins, and ongoing exploration of new growth avenues solidify its position as a compelling growth stock for investors.
The current market presents unique opportunities for investors to acquire stakes in promising growth-oriented companies. The success stories of DraftKings, Fortinet, and Tencent highlight the importance of innovation, strategic market positioning, and efficient capital allocation. These companies exemplify how focused growth strategies, combined with prudent financial management, can generate significant value even in a dynamic economic landscape. Their relatively accessible stock prices further underscore the potential for democratized participation in high-growth sectors, allowing more investors to capitalize on future market upswings. This demonstrates that even with a modest initial investment, one can tap into sectors driven by technological advancement and evolving consumer behaviors.
