Got $5,000? These 3 Growth Stocks Are Near Their 52-Week Lows

Buying growth stocks on the dip can be a way to lock in some great future gains. The current economy might not be ideal for all businesses, but in the long run, it is likely to recover. And amid that recovery, growth stocks as a whole should perform better.

Three such stocks that investors have been feeling bearish about of late are Apple (AAPL 0.02%), Starbucks (SBUX 3.41%), and Prologis (PLD 0.64%). They are all trading near their 52-week lows, and if you have $5,000 you can afford to invest, here's why you should consider loading up on these stocks right now.

Apple

At around $175, Apple's stock has been rising of late, but it's still not far from its 52-week low of $164.08, and it's still down 9% year to date. It's trading at 26 times its trailing earnings, which isn't a steep multiple for one of the most valuable stocks in the world.

Investors have become concerned about iPhone demand. In China, a key market for Apple, sales have been falling during the early part of the year with consumers scaling back spending or buying cheaper options, including from Chinese rival Huawei.

But with more than 2 billion active devices, Apple already has a massive customer base. And while some consumers might be more hesitant to upgrade their phones right now because the economy isn't ideal, that doesn't mean sales will lag forever. Consumers could simply postpone upgrading their phones to help conserve cash.

They could also be waiting for a phone that includes the latest and greatest artificial intelligence (AI) features; generative AI capabilities are rumored to be coming to the iPhone 16 later this year.

It would be premature to worry about Apple's business. Its vast ecosystem and devoted user base make it likely that the company will continue to grow for years, particularly as it offers more services and becomes a bigger player in AI. For long-term investors, now can be an optimal time to buy the stock.

Starbucks

Another company with a legion of devoted customers is Starbucks. Despite there being cheaper options for coffee, the chain continually pumps out strong numbers.

Starbucks recently posted its second-quarter results, for the period ending March 31, and its consolidated net revenue of $8.6 billion was down 2%, which wasn't terribly bad given the current macroeconomic conditions, which are far from ideal for the business, with many consumers cutting back on spending. Its net income declined by 15% to $772.4 million. But in the long run, as economic conditions improve, Starbucks' numbers should recover.

The underwhelming results, did, however, lead to a sharp sell-off of the stock on Wednesday, sending it to a new 52-week low. While the near-term may look troubling for Starbucks, this is still a top restaurant chain to invest in for the long haul. Last year, the company announced plans to grow its number of stores from approximately 38,000 to 55,000 by the end of the decade.

Investors can also benefit from the stock's above-average dividend yield of 2.6%, which is higher than the S&P 500 average of 1.4%.

Prologis

Prologis is a real estate investment trust (REIT) that gives investors a great way to invest in e-commerce. As a leader in logistics, it invests in warehouses and helps companies grow their operations. Its customers include many big names, such as Amazon, PepsiCo, and Walmart.

The uncertainty of the current economic climate is likely weighing on the stock, which is down 22% this year. It's now less than $10 away from its 52-week low of $96.64. Prologis stock currently trades at an enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of less than 19, which is well below its five-year average of over 24.

Prologis can be a good option for investors in the long run given the ongoing need for warehouses and logistics as the world of e-commerce continues to grow. In 2023, the company reported core funds from operations (FFO) per share of $5.61, which was 9% higher than the $5.16 it reported a year earlier. This year, the REIT projects core FFO growth of more than 9% again.

Its financials are strong enough to support its dividend, which totals $3.84 per share over a full year. At 3.7%, investors can collect a dividend that's well above the S&P 500 average, giving them even more incentive to buy shares of Prologis.