In this piece, we will take a look at the 12 best NASDAQ stocks under $50. If you want to skip our introduction of the NASDAQ index and this year's stock rally, then head on over to 5 Best NASDAQ Stocks Under $50.
The NASDAQ is the second biggest stock exchange in the world. Data from the World Federation of Exchanges shows just how big the NASDAQ market is. As of June 2023, global equity markets had a market capitalization of $105 trillion, out of which $20 trillion is simply accounted for by the NASDAQ companies. In percentage terms, the NASDAQ accounts for 19% of the total global equities market capitalization - quite a considerable fact given that there are dozens of stock markets in the world. In fact, all of the stock exchanges in Europe, the Middle East, and Africa (EMEA) have a domestic market capitalization of $25 trillion which is just 25% more than the NASDAQ despite the fact that the latter is a single exchange while the former consists of 46 different stock markets.
So what makes the NASDAQ so big? Well, if you read us regularly or even briefly follow the stock market and financial news, you'd know that the NASDAQ literally has some of the biggest companies in the world listed for trading. America's big tech, made of firms such as Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), and Alphabet Inc. (NASDAQ:GOOG) combined with the electric vehicle giant Tesla, Inc. (NASDAQ:TSLA) and the semiconductor darling NVIDIA Corporation (NASDAQ:NVDA) are worth more on the stock market than what most third world countries have in their central banks. Combined, these six firms have a market value of roughly $9 trillion on the conservative side - implying that they account for nearly half of what the NASDAQ's market capitalization is. This is no small feat considering the fact that more than three thousand securities are listed on the NASDAQ market, and by extension, it's also another perfect example of Pareto's Law - where some of the entities account for the bulk of the values.
Not only does the NASDAQ list some of the biggest, if not the biggest companies in the world, but the exchange has had a stunner of a year in 2023. The first half of this year saw the NASDAQ Composite post 33% in gains while the NASDAQ 100 soared by nearly 40%. This is the kind of money that allows for early retirement if you have enough invested in the right stocks. Don't believe us? Consider the fact that if you had invested $100,000 in just Meta's shares at the start of the year, you would have made an additional $147,000 so far in the year - or effectively, more than doubled your money. Expand this to a million dollars and you'll understand the role that big tech has played this year. What's more, is that this is not even the highest profit that you could have made. Consider the fact that if you had believed in Mark Zuckerberg when everyone else was skeptical, which is in November 2022, then your $100,000 would now be worth $351,000 as Meta's 52-week low share price is $88.
This is the kind of magic that has taken place on the NASDAQ amidst worries that the U.S. economy will tip into a recession due to rapid monetary policy tightening by the Federal Reserve. Yet, this magic has not gone unnoticed by the managers of the exchange, Nasdaq, Inc. (NASDAQ:NDAQ), who announced in early July that they will rebalance the flagship NASDAQ 100 exchange. As of the cut off time for this special rebalance, Microsoft, Apple, NVIDIA, Tesla, and Amazon accounted for nearly 44% of the index's weight, and the rebalance will reduce this to 38.5%. The Nasdaq's rules call for a rebalance when companies that have a weight of 4.5% cumulatively exceed the index weight by 48%, and a rally in Tesla's shares triggered this rule according to Wells Fargo. This change will impact exchange traded funds (ETFs) that track the index and also investment portfolios that have followed the broader index in assigning their stock weights. At the same time, shares of smaller companies, which will now represent a larger portion of the NASDAQ, can benefit - providing the astute investor with the opportunity to profit.
With this context, let's take a look at some top NASDAQ stocks that are trading under $50. Some top picks are Intel Corporation (NASDAQ:INTC), Comcast Corporation (NASDAQ:CMCSA), and Flex Ltd. (NASDAQ:FLEX).
12 Best NASDAQ Stocks Under $50
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Our Methodology
To make our list of the top NASDAQ stocks under $50, we first selected the top fifty such companies in terms of market capitalization. Then, the number of hedge funds that had bought their shares as of March 2023 was determined courtesy of Insider Monkey's database of 943 funds, and the top 12 with the highest hedge fund investors were selected as the top NASDAQ stocks under $50.
12 Best NASDAQ Stocks Under $50
12. The Liberty SiriusXM Group (NASDAQ:LSXMA)
Number of Hedge Fund Investors In Q1 2023: 42
The Liberty SiriusXM Group (NASDAQ:LSXMA) is an entertainment company that delivers different kinds of content through satellites and other platforms. The company has a healthy dividend payout ratio of 30%, and not only do the shares have a $12 upside but they are also rated Strong Buy on average.
As of Q1 2023 end, 42 of the 943 hedge funds part of Insider Monkey's database had bought a stake in The Liberty SiriusXM Group (NASDAQ:LSXMA).
The Liberty SiriusXM Group (NASDAQ:LSXMA) joins Comcast Corporation (NASDAQ:CMCSA), Intel Corporation (NASDAQ:INTC), and Flex Ltd. (NASDAQ:FLEX) in our list of top NASDAQ stocks under $50.
Roivant Sciences Ltd. (NASDAQ:ROIV) is a biotechnology company that develops treatments for diseases such as dermatitis and colitis. Its treatment pipeline stands a chance of performing quite well in the long term, as some treatments such as the one for dermatitis have performed well in trials.
Insider Monkey dug through 943 hedge funds for their first quarter of 2023 shareholdings to find out that 43 had invested in the company. Among these, Roivant Sciences Ltd. (NASDAQ:ROIV)'s largest shareholder is Daniel Gold's QVT Financial courtesy of a stake worth $904 million.
Fifth Third Bancorp (NASDAQ:FITB) is a regional bank headquartered in Cincinnati, Ohio. It has had one of the fastest growing dividends in the industry, with a 70% growth between 2018 and 2022. Analyst sentiment in the stock has massively shifted to Hold in July; however, the shares are rated Buy on average due to a significant number of Buy and Strong Buy ratings in April, May, and June.
After sifting through 943 hedge funds for their March quarter of 2023 investments and discovered that 44 had bought Fifth Third Bancorp (NASDAQ:FITB)'s shares. Israel Englander's Millennium Management is the largest investor, owning a $99 million investment.
eBay Inc. (NASDAQ:EBAY) is one of the oldest digital marketplaces in the world and one which allows regular people to sell their products. Despite 44 hedge funds having owned its shares as of March 2023, the fact still remains that eBay Inc. (NASDAQ:EBAY) has a trust deficit problem among customers. However, it is adding new services to its portfolio, such as by having acquired a platform that allows buyers to easily determine authenticity.
eBay Inc. (NASDAQ:EBAY)'s largest investor in our database is Richard Mashaal's Rima Senvest Management with a stake worth $231 million.
Viatris Inc. (NASDAQ:VTRS) is a diversified drug manufacturer with a global operations base. While its revenue growth has slowed down recently, the firm still pays attractive dividends and regularly buys back its own shares. Out of the six latest analyst notes covering the shares, four have downgraded it to Market Perform, Underweight, or Equal Weight.
Insider Monkey's first quarter of 2023 survey covering 943 hedge funds revealed that 46 had invested in Viatris Inc. (NASDAQ:VTRS). Out of these, the firm's largest shareholder is Stephen Dubois' Camber Capital Management with a $216 million investment.
Match Group, Inc. (NASDAQ:MTCH) provides online dating applications. While the firm has weathered the recent economic slowdowns well through managing costs well, its primary problem, like most other software platforms, is the ease at which competitors can grow and take away market share.
As of March 2023, 52 of the 943 hedge funds polled by Insider Monkey had bought and owned Match Group, Inc. (NASDAQ:MTCH)'s shares.
JD.com, Inc. (NASDAQ:JD) is a Chinese digital marketplace that lets customers buy and sell a wide variety of products. The firm's shares have struggled on the market lately as China's economy has sputtered to a recovery. However, a strong business model might prove to a tailwind if China manages to restart its economic engine.
59 of the 943 hedge funds part of Insider Monkey's database had held the firm's shares during 2023's March quarter. Among these, the largest investor was Chase Coleman and Feroze Dewan's Tiger Global Management LLC through its $1 billion stake.
Intel Corporation (NASDAQ:INTC), JD.com, Inc. (NASDAQ:JD), Comcast Corporation (NASDAQ:CMCSA), and Flex Ltd. (NASDAQ:FLEX) are some of best NASDAQ stocks under $50.