Are you sitting on $1,000 and have no immediate plans for it? If you are, then it could be worth putting it to work in the share market.
But which ASX stock could be worth considering? Let's take a look at one that could be among the best to buy right now.
Invest $1,000 in this ASX stock
One stock that could be a great option for a $1,000 investment right now is Xero Ltd (ASX: XRO).
It is a global small business platform with 4.2 million subscribers. The company notes that its smart tools help small businesses and their advisors to manage core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments.
In addition, Xero's extensive ecosystem of connected apps and connections to banks and other financial institutions provide a range of solutions from within Xero's open platform to help small businesses run their business and manage their finances more efficiently.
Its products and services have been in great demand in recent years thanks to the shift to the cloud, efficiency benefits, and regulatory tailwinds. This has been underpinning significant recurring revenue growth.
The good news is that Goldman Sachs believes this strong growth can continue for a long time to come thanks to its huge total addressable market (TAM). In fact, the broker has previously stated that it sees potential for a multi-decade runway for growth.
This arguably makes the ASX stock a great long-term option for investors today.
Commenting on its bullish view, Goldman said:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated.
Big return potential
Goldman sees plenty of scope for this ASX stock to climb meaningfully from current levels.
At the end of last month, the broker put a conviction buy rating and $201.00 price target on its shares.
Based on its current share price of $149.85, this implies potential upside of 34% for investors over the next 12 months.
This means that a $1,000 investment could turn into approximately $1,340 if Goldman is on the money with its recommendation.
