In this article, we will take a look at 13 best stocks under $50 to buy now. If you'd like to skip our overview of investing and some recent financial news, then please take a look at the 5 Best Stocks Under $50 to Buy Now.
As the year 2023 approaches its conclusion, there is a growing consensus that the anticipated recession, once a prominent topic of concern, has been avoided. According to Goldman Sachs' 2024 outlook report, the financial giant anticipates modest growth in the U.S. economy for the next year and does not foresee the onset of a recession. This is further evidenced by stocks maintaining their strength amid an AI-fueled rally and robust consumer spending, contributing to strong third-quarter performances for many companies. A notable example is the blazing ascent of NVIDIA Corporation (NASDAQ:NVDA), with the stock surging by nearly 234% year-to-date, driven by the artificial intelligence wave. The company achieved another record quarterly revenue, exceeding estimates and reaching an impressive $18 billion, more than triple the figure from a year ago.
The U.S. equity markets are ending November with positive momentum, signaling a noteworthy recovery following months of volatile returns. This sustained market resurgence can be attributed to various factors, including a pause in interest rate hikes since July and better-than-expected figures in inflation, job reports, and other economic indicators. Employment rates have shown stability with minor fluctuations, and the stock market has demonstrated resilience, with the S&P 500 registering a 19% increase and the NASDAQ-100 rising by 46.94% year-to-date as of November 28. Moreover, the U.S. GDP exhibited robust growth of 4.9% in the third quarter of 2023, a significant uptick from the 2.1% recorded in the second quarter.
Including stocks trading below $50 in an investment portfolio can be a beneficial strategy due to their affordability. Despite their lower prices, some of these stocks exhibit notable upside potential. Our curated list of 13 stocks priced under $50 to consider for purchase comprises leading companies spanning various sectors, including the likes of Bank of America Corporation (NYSE:BAC), Teck Resources Ltd (USA) (NYSE:TECK), and Pfizer Inc. (NYSE:PFE), among others listed below.
An overhead view of a bustling stock exchange, highlighting the company's presence in the financial markets.
We used stock screeners to shortlist stocks that were trading at a share price of less than $50. The compilation of stocks is derived from their popularity among the 910 hedge funds monitored by Insider Monkey. The roster of 13 stocks under $50 to consider buying is organized in ascending order based on the count of hedge funds that held each stock.
13. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 40
Share Price as of November 28: $35.08
The Kraft Heinz Company (NASDAQ:KHC), commonly known as Kraft Heinz, is an American multinational food corporation formed through the merger of Kraft Foods and H.J. Heinz Company. With dual headquarters in Chicago and Pittsburgh, the company is involved in the manufacturing and distribution of a wide range of products, including cheese, prepared meals, meats, dairy products, condiments, coffee, and more. The Kraft Heinz Company (NASDAQ:KHC) has revised its full-year 2023 adjusted EPS outlook to be in the range of $2.91 to $2.99, up from the previous range of $2.83 to $2.91. During the third quarter of this year, 40 of the 910 hedge funds examined by Insider Monkey maintained a stake in the company. The primary hedge fund shareholder of The Kraft Heinz Company (NASDAQ:KHC) is Berkshire Hathaway, led by Warren Buffett, with a substantial $10.9 billion investment. Much like Bank of America Corporation (NYSE:BAC), Teck Resources Ltd (USA) (NYSE:TECK), and Pfizer Inc. (NYSE:PFE), Kraft Heinz Company (NASDAQ:KHC) ranks among the best stocks under $50 to buy.
12. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 41
Share Price as of November 28: $43.64
The Kroger Co. (NYSE:KR), commonly known as Kroger, is an American retail corporation overseeing a network of supermarkets and multi-department stores nationwide, covering 35 states. With over 2,700 supermarkets and multi-department stores in operation, Kroger stands as a major player in the global food retail industry. On September 14, The Kroger Co. (NYSE:KR) declared its regular quarterly dividend of $0.29 per share, continuing its steadfast dividend policy. This announcement marked the company's 17th consecutive year of dividend growth. As of November 28, the stock presented a dividend yield of 2.64%, making it an appealing choice for investors seeking income. At the end of the third quarter of 2023, 41 hedge funds tracked by Insider Monkey owned investments in The Kroger Co. (NYSE:KR), which was a slight decline from 43 in the previous quarter. The overall value of these stakes is over $3.13 billion. Oakmark Funds funds mentioned The Kroger Co. (NYSE:KR) in its Q3 2023 investor letter. Here is what the firm has to say:
“The Kroger Co. (NYSE:KR) is the second-largest grocery retailer in America behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery. However, we believe the company’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons has the potential to drive accelerated earnings growth and further scale advantages. If the merger is not approved, the company will have the capacity to return approximately 25% of its market cap to shareholders.”
11. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 47
Share Price as of November 28: $16.52
The Hewlett Packard Enterprise Company (NYSE:HPE) is a multinational information technology firm headquartered in Spring, Texas, United States, founded on November 1, 2015, following the split of the Hewlett-Packard company in Palo Alto, California. In the third quarter of 2023, Hewlett Packard Enterprise Company (NYSE:HPE) experienced notable success in its Intelligent Edge segment, which includes Internet of Things (IoT), Operational Technology (OT) devices, and edge computing hardware. The Intelligent Edge segment generated revenues of $1.4 billion, reflecting a significant 50% increase compared to the corresponding quarter of the previous year. These revenues constituted approximately 20% of HPE's total earnings for the quarter. On October 20, UBS analyst David Vogt raised the firm’s price target for Hewlett Packard Enterprise Company (NYSE:HPE) to $16, up from the previous target of $15, while maintaining a "Neutral" rating on the company's shares. According to the analyst, the company outlined substantial Total Addressable Market (TAM) expansion, particularly in Networking and Artificial Intelligence, supporting a multi-year revenue growth target of 2%-4% in constant currency terms. At the end of Q3 2023, 47 hedge funds tracked by Insider Monkey reported having stakes in Hewlett Packard Enterprise Company (NYSE:HPE), a slight decline from 50 in the previous quarter. These stakes have a total value of roughly $864.4 million.
10. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 52
Share Price as of November 28: $44.88
Devon Energy Corporation (NYSE:DVN) is primarily involved in hydrocarbon exploration in the United States, registered in Delaware and headquartered at the Devon Energy Center, a 50-story skyscraper in Oklahoma City, Oklahoma. In the second quarter, the company generated over $1.4 billion in operating cash flow and returned $690 million to shareholders through dividends and stock buybacks.
On November 7, Devon Energy Corporation (NYSE:DVN) announced a quarterly dividend of $0.77 per share, encompassing both fixed and variable components. As of November 29, the company
Among the 910 hedge funds monitored by Insider Monkey, 52 of them held stakes in Devon Energy Corporation (NYSE: DVN). The largest stake in Devon Energy Corporation (NYSE:DVN) was held by Donald Yacktman’s Yacktman Asset Management, which possesses a $145.2 million stake in the company.
9. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 55
Share Price as of November 28: $16.11
Coupang, Inc. (NYSE:CPNG) is a prominent ecommerce company headquartered in Seoul, South Korea. It provides a range of ecommerce services, including same-day and next-morning delivery of groceries and general merchandise, as well as delivery of prepared foods through Coupang Eats and video streaming through Coupang Play.
As per a regulatory filing, Coupang, Inc. (NYSE:CPNG) recorded an operating profit of $87 million for the period of July to September, marking a 13% increase compared to the corresponding period last year. This achievement signifies Coupang's third consecutive quarter of profitability in the current year, accumulating a total operating profit of $341.9 million. The positive trend has heightened expectations that the company is on track to achieve an annual profit for the first time since its establishment in 2010.
As of Q3 2023, data from Insider Monkey on 910 hedge funds revealed that 55 hedge funds had holdings in Coupang, Inc. (NYSE:CPNG), with a total value of $3.6 billion. The largest shareholder was Lee Ainslie’s Maverick Capital, holding 77 million shares valued at $1.3 billion.
8. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 55
Share Price as of November 28: $36.74
Sea Limited (NYSE:SE), headquartered in Singapore, stands as a prominent consumer internet company in Southeast Asia and Taiwan, operating three core businesses: Shopee (an ecommerce platform), Garena (a global games developer and publisher), and SeaMoney (a digital payments and financial services provider).
On November 14, Sea Limited (NYSE:SE) unveiled its quarterly results for Q3 2023. The company reported a 5% year-on-year increase in total revenues to $3.3 billion, accompanied by a substantial 75% year-on-year reduction in net loss to $144 million. The normalized EPS for the quarter stood at $0.04, missing consensus estimates by $0.05.
As of Q3 2023, data from Insider Monkey's tracking of 910 hedge funds revealed that 55 hedge funds were bullish on Sea Limited (NYSE:SE), holding shares valued at $2.2 billion. Tiger Global Management LLC emerged as the leading hedge fund with ownership of 11.7 million shares, valued at $514 million.
7. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 65
Share Price as of November 28: $48.72
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical firm involved in various aspects of the biopharmaceutical industry, including research, development, licensing, manufacturing, marketing, and distribution of biopharmaceutical products. These products are designed to address a wide range of medical conditions, encompassing hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases.
On October 8, Bristol-Myers Squibb Company (NYSE:BMY) announced its entry into a definitive merger agreement to acquire Mirati Therapeutics, Inc. (NASDAQ:MRTX), in an all-cash transaction valued at $4.8 billion. This strategic acquisition is anticipated to enhance and diversify the company's oncology portfolio.
As of the conclusion of the third quarter this year, Bristol-Myers Squibb Company (NYSE:BMY) attracted investment from 65 out of the 910 hedge funds examined in Insider Monkey’s research.
RGA Investment Advisors made the following comment about Bristol-Myers Squibb Company (NYSE:BMY) in its Q3 2022 investor letter:
“Bristol-Myers Squibb Company (NYSE:BMY), which we referenced above, boasts a double digit free cash flow yield that gets divided roughly equally between repurchases, a dividend and M&A in what is the best environment for acquisitions perhaps ever. In 2019, BMY acquired Celgene, who had one of the better corporate development programs in the industry. We view this as a great outlet for us as generalists considering a company like BMY should truly thrive with the ability to acquire outstanding assets and science at depressed valuations. We touched on the Turning Point acquisition above and we expect the company to be increasingly active in the M&A landscape. Importantly, Celgene also came to BMY with a phenomenal CAR-T platform. CAR-T is a cell therapy that activates the body’s immune system to target cancers. This will be a key growth vector alongside M&A in overcoming the company’s patent cliff.”
6. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 68
Share Price as of November 28: $31.60
General Motors Company (NYSE:GM) is a prominent multinational automotive corporation dedicated to the manufacturing and sale of trucks, crossovers, cars, and automotive parts and accessories worldwide. The company oversees major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.
In Q3 2023, General Motors Company (NYSE:GM) delivered a robust quarterly performance. Its revenue experienced a 5% year-over-year increase, reaching $44.1 billion, while net income, although down by 7% year-over-year, amounted to $3.1 billion. The company exceeded consensus estimates for EPS by $0.37, reporting quarterly figures of $2.20. In response to the earnings release, RBC Capital analyst Tom Narayan raised the price target for General Motors Company (NYSE:GM) shares to $48 from $47, maintaining an 'Outperform' rating.
By the end of this year’s third quarter, 68 of the 910 hedge funds part of Insider Monkey’s database had also bought General Motors Company (NYSE:GM)’s shares. The largest investor is Natixis Global Asset Management’s Harris Associates through a $1.17 billion investment.
Patient Capital Opportunity Equity Strategy made the following comment about General Motors Company (NYSE:GM) in its Q2 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
In addition to Bank of America Corporation (NYSE:BAC), Teck Resources Ltd (USA) (NYSE:TECK), and Pfizer Inc. (NYSE:PFE), General Motors Company (NYSE:GM) is a notable stock that is trading under $50.
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Disclosure. None. 13 Best Stocks Under $50 to Buy Now is originally published on Insider Monkey.