Cheap Stocks, Nervous Market, Big Opportunity: Where to Put $5,000 Right Now

While artificial intelligence (AI) stocks have bounced back to lead the market higher, the same can't be said for growth stocks in the consumer space. The market is still nervous about what impact the war with Iran and high oil prices will have on the consumer. However, that opens the door for investors to pick up some growth stocks on the cheap.

Let's look at two stocks you can split $5,000 between right now.

e.l.f. Beauty

E.l.f. Beauty (NYSE: ELF) is a growth stock trading at an attractive valuation, with a forward price-to-earnings (P/E) ratio of just 16 times 2027 analyst estimates. In the past, the company was able to consistently take market share in the mass cosmetic category through its fast-follower strategy of imitating popular prestige products and offering them at much cheaper prices. It has a strong influencer marketing network and has been able to increase distribution and take shelf space.

Now the company has big opportunity with its recently acquired upscale skincare brand Rhode. Rhode burst onto the scene generating $200 million in sales with less than a dozen products through its website. E.l.f. Beauty will now be able to widen its product assortment and get the brand into more retail outlets. That should help power its next leg of growth in the coming years, making the stock a great bargain bin buy.

Celsius

The investment thesis for buying Celsius Holdings (NASDAQ: CELH) is similar to that of owning e.l.f., except with energy drinks. The company saw strong growth in the past as its drinks appealed to a wider audience, drawing in female consumers to the category. It later signed a distribution deal with PepsiCo that helped drive strong growth.

Now, the company is looking to apply that same playbook with popular energy drink brand Alani Nu, which it acquired last year. Increasing the brand's distribution should be a big growth driver. Meanwhile, the company also acquired the RockStar brand, looking to turn that brand around, and bottler Big Beverages, which will give it more control to offer limited time offerings.

Similar to e.l.f., Celsius' stock is attractively valued, trading at a forward P/E of 17 times 2027 analyst estimates.

Image source: Getty Images.

Two great distribution plays

Owning the stocks of consumer companies in the middle of distribution increases is often a sure-fire way to gains. Both e.l.f. and Celsius have successfully done this with their namesake brands, and now they have the chance to do it with popular brands they've recently acquired. With $5,000, you can split buying 40 shares in e.l.f and 70 in Celsius.

Geoffrey Seiler has positions in e.l.f. Beauty. The Motley Fool has positions in and recommends Celsius Holdings and e.l.f. Beauty. The Motley Fool has a disclosure policy.