In this article, we discuss the 10 Best Inexpensive Stocks to Buy Right Now. You can skip our detailed analysis of these companies, and go directly to the 5 Best Inexpensive Stocks to Buy Right Now.
As the markets are recovering from the distressing effects of the pandemic, investors seek refuge in inexpensive stocks to save themselves from big losses. Another reason for these investments is the rise of small investors in the market, fueled by the pandemic, as more and more people tried to turn profits during the lockdown. However, inexpensive stocks require patience from shareholders, and it could be months before they start generating profits.
As platforms like Robinhood gain popularity, average Americans are taking interest in investing in inexpensive stocks. According to a report published by Wall Street Journal, there were over 1.9 trillion transactions in OTC markets in February 2021, up 2000% from 2020.
Our Methodology:
Let’s analyze our list of the best inexpensive stocks to buy right now. The stocks mentioned below are trading under $50 per share as of November 12. We took into account basic business fundamentals, hedge fund sentiment, and companies’ future growth potential while choosing these stocks.
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10 Best Inexpensive Stocks to Buy Right Now
10. Ares Capital Corporation (NASDAQ:ARCC)
Number of Hedge Fund Holders: 12
Share Price as of November 12: $20.94
Ares Capital Corporation (NASDAQ:ARCC), an American Business Development company, announced its Q3 results on October 26 and posted an EPS of $0.47, beating the estimates by $0.02. The company’s total investment income stood at $442 million, up 25.6% from the prior-year quarter.
At the end of Q2, 12 hedge funds tracked by Insider Monkey reported owning stakes in Ares Capital Corporation (NASDAQ:ARCC), compared with 15 in the previous quarter. The total value of these stakes is over $86.6 million, up from $84 million in Q1.
Recently, Citigroup lifted its price target on Ares Capital Corporation (NASDAQ:ARCC) to $23, with a Buy rating on the shares, highlighting the company’s strong Q3 results. On October 26, Ares Capital Corporation (NASDAQ:ARCC) announced a quarterly dividend of $0.41 per share, with a dividend yield of 7.7%.
9. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
Number of Hedge Fund Holders: 21
Share Price as of November 12: $22.55
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) presented a positive hedge fund sentiment in Q2, as 21 hedge funds tracked in Insider Monkey’s database were bullish on the company, compared with 18 in the previous quarter. The total value of these stakes is $242.5 million, up significantly from $99.6 million in Q1.
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) specializes in the manufacturing of firearms, ammunition, and restraints. In fiscal Q1, the company posted an EPS of $1.57, beating the estimates by $0.31. This September, Lake Street reiterated a $43 price target on the stock, with a Buy rating on the shares. The firm’s analyst appreciated the company’s efforts to increase its flexible manufacturing capacity.
Since the beginning of the year, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) delivered a 24.04% return to shareholders, while the stock gained 40.1% in the past year.
8. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 25
Share Price as of November 12: $20.29
American Airlines Group Inc. (NASDAQ:AAL) remains one of the best inexpensive stocks to buy right now as recently, the U.S. has lifted pandemic-related travel restrictions for international visitors.
In Q3, American Airlines Group Inc. (NASDAQ:AAL) posted an EPS of -$0.99, beating the estimates by $0.04. The company’s revenue for the quarter stood at $8.9 billion, up 183% from the prior-year quarter.
As of Q2, 25 hedge funds tracked by Insider Monkey reported owning stakes in American Airlines Group Inc. (NASDAQ:AAL), down from 32 in the previous quarter. The total value of these stakes is over $620.2 million, compared with $561.7 million in Q1. As of Q3, Renaissance Technologies is the largest shareholder of American Airlines Group Inc. (NASDAQ:AAL), with over 5 million shares.
7. KB Home (NYSE:KBH)
Number of Hedge Fund Holders: 27
Share Price as of November 12: $42.65
Recently, KB Home (NYSE:KBH), an American homebuilding company, announced its expansion into Idaho, where it will maintain over 1,100 homesites across three planned new-home communities. The company expects its first home deliveries by the end of 2022.
Fisher Asset Management is the leading shareholder of KB Home (NYSE:KBH) in Q3, owning over 2.4 million shares. Of the 873 elite funds, 27 hedge funds tracked by Insider Monkey had stakes in KB Home (NYSE:KBH) in Q2, up from 24 in the previous quarter. The total value of these stakes is over $287.6 million.
This September, RBC Capital lifted its price target on KB Home (NYSE:KBH) to $50, with a Sector Perform rating on the shares. On October 7, the company’s board announced a quarterly dividend of $0.15 per share, with a dividend yield of 1.53%.
6. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 30
Share Price as of November 12: $27.53
Levi Strauss & Co. (NYSE:LEVI) is an American clothing company, famous for its denim jeans. The company pays an annual dividend of $0.32 per share, yielding 1.16%.
Levi Strauss & Co. (NYSE:LEVI) announced its Q3 results on October 6 and posted an EPS of $0.48, beating the estimates by $0.11. The company’s revenue also presented a 41.5% year-over-year growth at $1.5 billion. This August, Wells Fargo initiated its coverage on Levi Strauss & Co. (NYSE:LEVI) with an Overweight rating and a $31 price target, highlighting the company’s global position in the denim market.
At the end of Q2, 30 hedge funds tracked by Insider Monkey reported owning stakes in Levi Strauss & Co. (NYSE:LEVI), valued at $414.2 million. In the previous quarter, 19 hedge funds had stakes in the company, highlighting a positive hedge fund sentiment in Q2.
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Disclosure. None. 10 Best Inexpensive Stocks to Buy Right Now is originally published on Insider Monkey.
