In this article, we discuss the 10 best stocks under $15 to buy now and take a look at the impact recent interest rate cuts have had on the stock market.
While September is usually the toughest month for the stock market, it is delivering solid results this time. Stocks are soaring after the Federal Reserve announced a half-point cut this month to bring interest rates between 4.75% and 5%. This has led to the market racking up records again as investors look to move from riskier investments to stocks, reported CNN.
The broader market marked its 42nd record-high close in 2024 this past Thursday. The index, which has a history of September dips, is on track for a 1.3% gain this month, which will take its quarterly advance close to 5%. The Dow Jones Industrial Average surged 0.4% a day later to reach its 32nd record high for the year after investors received encouraging economic data regarding inflation, which has raised hopes for further interest rate cuts.
According to the Personal Consumption Expenditures Price Index, inflation rose 2.2% in August this year, which marked the lowest inflation rate in the United States since February 2021. Overall inflation in the country is crawling back to the Federal Reserve’s goal of a two percent annual rate. The easing of consumer prices is expected to result in further interest rate cuts to prevent a spike in unemployment rates, say economic experts. This has raised hopes among investors about the American economy returning to solid footing.
However, Fundstrat Global Advisors’ co-founder, Tom Lee, in an interview with CNBC this week cautioned against diving into stocks after interest rate cuts, citing election uncertainty.
This Fed cut cycle I think is setting the stage for markets to be really strong over the next one month or next three months. But, what the stocks do between now and let’s say election day, I think is still a lot of uncertainty. And that’s the reason why I’m a little hesitant for investors to dive in.
In the weeks leading to the cuts, Lee, who is generally bullish on the stock market, warned investors that stocks could fall 10% during the coming eight weeks amid nervousness around the presidential elections, and added that the dip should viewed as a buying opportunity.
Liz Young Thomas, the head of investment strategy at SoFi, has also acknowledged the risk of stock market volatility associated with the presidential elections. While talking to the Business Insider, she noted how thinner trading volumes between June and August, when traders are on summer vacations, drive strong market performance, and the market turns volatile when stock activity picks up after traders return to their desks in September. According to Young Thomas, a two percent shift in share prices has become the norm in September. However, during the election year, volatility peaks around mid-October instead of September, and the market returns to normalcy after the results are announced.
With this analysis in mind, let’s now head over and discuss the best stocks under $15 to buy now.
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Methodology
We scanned Insider Monkey’s database of 912 hedge funds for the second quarter of 2024 to look for stocks with a share price of under $15 and then picked the top 10 companies with the highest number of hedge funds having stakes in them. We ranked them in ascending order of hedge fund holders in each company. In the case where two or more stocks had the same number of hedge fund holders, we used market capitalization as a tie-breaker and placed the stock having a greater market capitalization at a higher ranking.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Stocks Under $15 To Buy Now:
10. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 44
Share Price as of the close of September 27: $10.87
Snap Inc. (NYSE:SNAP) is an American photo-sharing and instant messaging service founded by Evan Spiegel in 2011. The company initially operated as Snapchat Inc. after its launch before being rebranded in 2016 to include Bitmoji and Spectacles in its portfolio of products and services. With over four billion snaps sent each day, it is one of the most popular social media platforms in the world.
During Q2 2024, the company generated a revenue of $1.24 billion, representing a 16% year-over-year increase. Advertising revenue accounted for 91% of the share. Net loss declined to $249 million from $377 million a year ago during the same period. This was driven by a significant improvement in adjusted EBITDA and a reduction in stock-based compensation and related expenses. Diluted net loss per share was recorded at $0.15, while non-GAAP EPS was at $0.02 in line with analysts’ expectations for the quarter.
Snap Inc. (NYSE:SNAP) also reached 432 million daily active users and over 850 million active monthly users during the quarter, setting it on the path to reach its target of having 1 billion active monthly users. Non-advertising revenue totaled $105 million, with most of the share coming from Snapchat Plus subscriptions, which crossed the 11 million subscriber milestone in Q2.
For Q3, the company anticipates revenue between $1.34 billion and $1.38 billion – implying a 12-16% increase from last year – and EBITDA in the range of $70 million to $100 million. It also expects daily active users to reach the 441 million mark during the quarter. While the brand advertising environment remains weak in certain verticals and no significant improvement is expected in the short term, the overall outlook for the company appears positive.
With steady growth shown over the last few quarters, Wall Street analysts expect a 34% upside in the company’s share price. According to Insider Monkey’s database, 44 hedge funds have a stake in Snap Inc. (NYSE:SNAP) as of Q2 2024, making it one of the best stocks under $15 to buy now.
9. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 45
Share Price as of the close of September 27: $11.55
Viatris Inc. (NASDAQ:VTRS) is an American pharmaceutical company, headquartered in Canonsburg, Pennsylvania, that specializes in a variety of therapeutic areas, including treatments for anxiety, epilepsy, and arthritis, among other diseases. It was formed after the merger of Upjohn and Mylan in 2020.
The company has made a great start to the year and reported strong financial results during the second quarter of 2024. This was the fifth successive quarter during which operational revenue increased. The company delivered total revenues of $3.8 billion in Q2 and an operational revenue growth of 2%. Adjusted EBITDA also grew 2% from last year to total $1.2 billion for the quarter, resulting in EPS of $0.69, narrowly beating estimates of $0.68 per share. CFO, Doretta Mistras, credited the results to the company’s growing base business, solid financials, and the ability to generate significant cash flow.
Although Viatris Inc. (NASDAQ:VTRS) has a strong cash flow, it carries a significant amount of long-term debt – amounting to around $14.7 billion in the most recent quarter. Street analysts suggest that a major chunk of its free cash flow will go into reducing this debt. For perspective, the company had a free cash flow of $426 million during Q2, while it allocated $800 million to repay its outstanding debt.
However, this remains a minor concern for the company as it anticipates cash flow momentum to continue and expects to have over $3 billion cash in hand to repay debt during the second half of the year. Operational revenue is also expected to grow 2% in the back half of 2024 compared to the same period in 2023. Moreover, the company has strong confidence in its new product revenue, which reached $210 million in Q2 and is forecast to end up in the range of $500 million and $600 million for FY 2024. This has led to a bullish sentiment around the stock.
Experts at Jefferies Group, an investment banking company, resumed coverage of Viatris Inc. (NASDAQ:VTRS) in July and assigned it a Buy rating with a share price target of $15, representing an upside of 30% from its current level. Besides, 45 hedge funds held a stake in the company as of Q2 2024, according to Insider Monkey’s database, making it one of the best stocks under $15 to buy now. We also covered Viatris as the best dividend-paying stock under $15. You can read more on this here.
8. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
Share Price as of the close of September 27: $10.78
Ford Motor Company (NYSE:F) is an American automobile manufacturer, founded in 1903, that sells commercial vehicles and luxury cars. The company has had inconsistent, volatile returns over the last few years, especially since 2021, due to heavy losses in its EV business unit, inflated warranty costs, and an ongoing labor crisis.
The macroeconomic situation in the United States, with fears of the economy heading into recession, has set a bearish sentiment around the automobile market. Another cause of concern for the industry stems from the United Auto Workers (UAW) strike of 2023, which ended at the expense of a massive price tag to be borne by automakers. Ford anticipates additional costs worth $8.8 billion through mid-2028, with the incremental cost per vehicle rising to $900 by 2028 under the new contract, hurting the company’s EBITDA margins.
However, Ford Motor Company (NYSE:F) has had a solid year so far, fueled by strong sales of its trucks, most notably the Maverick and F-150 series, which have grown more than three times the rate of the overall hybrid segment. The slowing down of the EV market has also allowed the company to focus more on its gas-based vehicles, while simultaneously working on EV developments. In the past, the company was under the pump for its slow pace of transition in the EV sector. That pressure has now cooled off.
During Q2 2024, Ford Motor Company (NYSE:F) reported a revenue of $48 billion, representing a 6% growth year-over-year, and a sequential increase of 12% from the previous quarter. Adjusted EBIT for the quarter was at $2.8 billion, with a margin of 5.8%. The results were attributed to a higher truck volume and the strength of the company’s product portfolio.
Despite a strong quarter, some areas lagged. The Ford Model e reported a loss of $1.1 billion, due to wholesale decline and pressures on pricing in the industry. The company also sees headwinds emerging from inflationary and warranty pressures in Turkiye, which are likely to impact future earnings. These factors have resulted in some bearish sentiment around the stock.
However, the overall outlook for Ford Motor Company (NYSE:F) appears encouraging. The company has revised its full-year adjusted EBIT to $10 billion to $12 billion and has raised its free cash flow guidance from $7.5 billion to $8.5 billion, amid robust earnings during the year and lower than anticipated capital investments. Lastly, its focus on the adoption of software technology is set to drive future growth, with Ford Pro being on track for software and physical services to contribute 20% of Ford’s EBIT by 2026.
According to Insider Monkey’s database for Q2 2024, 47 hedge funds had investments in Ford Motor Company (NYSE:F), making it one of the best stocks under $15 to buy now.
7. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 48
Share Price as of the close of September 27: $8.38
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is an American entertainment and mass media conglomerate headquartered in New York City. The company was formed in 2022 through a merger of WarnerMedia and Discovery, Inc., and is considered one of the world’s top distributors of content across film, television, gaming, and streaming.
Two years since its launch, the company has made steady progress during its transition phase but also faces several pressing challenges that are impeding its financial progress. During Q2 2024, the company reported a revenue of $9.7 billion, which was down 5% compared to the same period last year. Net loss for the quarter amounted to $9.9 billion, of which $9.1 billion was the result of a write-down in the value of its cable network.
According to Warner Bros. Discovery, Inc. (NASDAQ:WBD), the difference between market capitalization and book value, along with softness in the advertising market, and uncertainty around sports rights renewals, triggered the goodwill impairment. Distribution and network ad revenues also decreased during the quarter, by 8% and 9%, respectively, and were driven by a 9% decline in pay-TV subscribers as domestic affiliate rates increased.
However, there were also numerous positives during the quarter. Warner Bros. Discovery, Inc. (NASDAQ:WBD) noted substantial growth in its direct-to-consumer (D2C) business, fueled by the Olympic Games’ viewership in Europe. The segment added 3.6 million new subscribers in Q2, following the addition of 2 million subscribers during the first quarter of FY24. The company also witnessed double-digit growth in demand for sports coverage, most notably the NBA, NHL, March Madness, Major League Baseball, and the French Open.
TV series Hard Knocks and House of the Dragon also did incredibly well during the quarter. The company expects the momentum to continue with the premiere of the highly anticipated HBO series, The Penguin, in September. These factors coupled with encouraging trends in sports coverage have put Warner Bros. Discovery, Inc. (NASDAQ:WBD) on track to meet its target of generating $1 billion in EBITDA in 2025.
As a result, Street analysts have maintained a consensus Buy rating on the stock and anticipate a 34% upside in its share price. According to Insider Monkey’s database, 48 hedge funds held a stake in the company, as of Q2 2024, making Warner Bros. Discovery, Inc. (NASDAQ:WBD) one of the best stocks under $15 to buy now.
6. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 49
Share Price as of the close of September 27: $7.15
Southwestern Energy Company (NYSE:SWN) is a natural gas exploration and production company headquartered in Spring, Texas. The company’s operations are focused on the development of unconventional natural gas reservoirs in the Appalachian Basin and Haynesville Shale.
During Q2 2024, the company reported operational revenues of $1.08 billion, with an EPS of $0.10 which beat analysts’ estimates by a penny. This was the third in the last four quarters in which the gas giant surpassed earnings expectations. According to analysts, the stronger-than-expected results were likely driven by higher oil and gas price realization.
Production metrics for Southwestern Energy Company (NYSE:SWN) were also noteworthy, with total net production reaching 379 Bcfe, which reflected a day output of 4.2 Bcfe. This included gas production of 3.6 Bcf per day and 101 MBbls per day of liquids. The company also made $430 million in capital investments that went into the drilling of 30 wells, completion of 23 wells, and the placement of 22 wells for sale.
Southwestern Energy Company (NYSE:SWN) had a total debt of $4.2 billion with a net debt to adjusted EBITDA (non-GAAP) of 2.1x at the end of the second quarter, which hinted at a manageable leverage profile. Moreover, 49 hedge funds have investments in the company, according to Insider Monkey’s database, as of Q2 2024, making it one of the best stocks under $15 to buy now.
Chesapeake Energy has been eying an acquisition of Southwestern Energy for some while now. It has already been delayed once this year after the U.S. Federal Trade Commission requested for further information from the two companies. According to a recent report in Reuters, the $7 billion acquisition is now expected to happen in Q4. Street analysts expect an 11.61% upside in the Southwestern’s current share price and have maintained consensus on its Hold rating.
5. Permian Resources Corporation (NYSE:PR)
Number of Hedge Fund Holders: 51
Share Price as of the close of September 27: $13.51
Permian Resources Corporation (NYSE:PR) is an oil and gas company headquartered in Midland, Texas. It focuses on the development of crude oil and rich natural gas reserves in the US, with operations primarily focused in the Permian Basin.
During Q2 2024, the company reported a revenue of $1.25 billion, which represented a 100% year-over-year increase. Net income grew a staggering 220% from last year to a total of $235.1 million. EPS for the quarter stood at $0.38, beating forecasts of $0.36 per share. Total oil production also exceeded expectations during the quarter, measured at 153,000 barrels of oil per day and 339,000 barrels of oil equivalent per day.
The robust financial performance was attributed to D&C efficiencies that resulted in accelerated cycle times and improved performances in fields and wells. The company also noted strong results in the gas and NLG segments, driven by an increase in gas processors. Permian Resources Corporation (NYSE:PR) also reported improved cost control measures during the quarter, which brought down well costs to $830 per foot versus the full-year guidance of $860 per foot.
It is one of the best stocks under $15 to buy now, with 51 hedge funds having investments in the company as of Q2 2024, according to Insider Monkey’s database. Permian Resources Corporation (NYSE:PR) has an institutional ownership of 75%, which reflects the stock’s stability. However, this also leaves the company vulnerable to their trading decisions. Recently, there have been some instances of insiders selling a significant stake in the company, which has resulted in some bearish sentiment. This included director, Jeffrey Tepper, who sold 65,000 of his shares in the company in May this year.
Having said that, the overall sentiment around the stock remains bullish. Following the $817 million acquisition of Oxy in July, which comprises the Barilla Draw assets and 2,000 acres in Eddy County, Permian Resources Corporation (NYSE:PR) expects strong momentum to continue. It has raised its full-year guidance of oil production and now forecasts an additional production of 4,500 barrels of oil per day compared to the initial guidance in February. Considering these factors, most Street analysts are bullish on the stock and have consensus on its Strong Buy rating. They also anticipate an upside of 44% in Permian Resources Corporation (NYSE:PR)’s share price.
4. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 53
Share Price as of the close of September 27: $12.16
Core Scientific, Inc. (NASDAQ:CORZ) is one of the largest digital asset mining services companies in North America, with expertise in data center design and management, blockchain infrastructure, software solutions, and other related services. It is one of the best stocks under $15 to buy now, with 53 hedge funds having a stake in the company, according to Insider Monkey’s database for Q2 2024.
During Q2 2024, the company reported a revenue of $141 million, of which $111 million was generated from digital asset self-mining, while digital asset-hosted mining accounted for $25 million of the share. The company also generated $5.5 million from HPC hosting. While the revenue increased by 11.18% year-over-year, Core Scientific, Inc. (NASDAQ:CORZ) reported a net loss of $805 million, driven by the company having to make adjustments to the value of its equity due to the significant quarter-to-quarter appreciation in share price.
Core Scientific, Inc. (NASDAQ:CORZ) went through bankruptcy toward the end of 2022 and is now emerging with a revamp, as its focus shifts significantly from only being a prominent Bitcoin miner to a broader set of offerings, encompassing AI and HPC infrastructure. As part of these efforts, the company announced that it had entered into an expanded partnership with cloud provider, CoreWeave. Under the contract, Core Scientific, Inc. (NASDAQ:CORZ) will provide CoreWeave with 382 megawatts of computing infrastructure with a potential revenue of $6.7 billion over the coming 12 years.
The strategic deal with CoreWeave will likely significantly contribute to the company’s growth and valuation. Its share price has increased 25% since the announcement of the agreement in August. Street analysts have consensus on the stock’s Strong Buy rating and forecast a further 23% upside in its share price. The success of this ongoing transition to AI and HPC infrastructure, however, is heavily dependent on the timely execution of these projects. Any delays might result in lost opportunities and allow competitors to gain market share in this space.
3. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 53
Share Price as of the close of September 27: $12.83
Lyft, Inc. (NASDAQ:LYFT) is a major American provider of Transportation-as-a-Service in the United States and Canada. The company offers ride-sharing, car and bike rentals, food delivery, and other related services through its Lytf app.
During the second quarter of 2024, the company reported that it had achieved GAAP profitability for the first time in its history, with a net income of $5 million. This robust result was driven by a 15% year-over-year increase in the total number of rides and a 10% growth in active riders compared to the same period in 2023 as the company supported 205 million rides and engaged with 23.7 million active users during the quarter.
Revenue in Q2 totaled $1.4 billion, up 40% from last year. Gross bookings crossed the $4 billion mark, representing a 17% increase, fueled by strong ride growth due to competitive pricing and successful marketing. Lyft, Inc. (NASDAQ:LYFT)’s media division also performed well during the quarter and saw its revenue grow 70% year-over-year, as the company signed deals with 44 new brands. The company expects this momentum to continue during the second half of the year and has reiterated its initial guidance for FY24.
The company does face fierce competition, however, from rival firms such as Uber which can result in severe price wars leading to reduced margins. Rising costs of insurance can also squeeze margins. During Q2, the company’s cost of revenue grew 37% in contrast to last year and was mainly driven by higher insurance costs. Despite these challenges, the overall outlook for Lyft, Inc. (NASDAQ:LYFT) is encouraging.
The management expects gross bookings in Q3 to be between $4 billion and $4.1 billion, up 13-15% from the same period last year. The company has also improved its financial position and it is now on track to achieve positive free cash flow for the full year after solid progress made in Q2, during which it generated $256 million in free cash flow. Lyft, Inc. (NASDAQ:LYFT) has also re-entered into its strategic partnership with Disney as its rideshare provider at Disney World Resort. The agreement also includes a media buy, which is projected to contribute to the company’s growth.
Street analysts anticipate a 24% increase in the company’s share price over the coming months. Moreover, according to Insider Monkey’s database for Q2 2024, 53 hedge funds have investments in Lyft, Inc. (NASDAQ:LYFT), making it one of the best stocks under $15 to buy now.
2. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 59
Share Price as of the close of September 27: $13.87
Nu Holdings Ltd. (NYSE:NU) is a Brazil-based digital banking company that provides financial services in multiple countries of Latin America. It is also one of the best-performing Warren Buffet stocks in 2024. The company’s share price has surged 103% over the past year, driven primarily by consistent growth in its net income over the last six quarters.
The company reported strong results during the second quarter of 2024, generating a revenue of $2.8 billion, representing a 65% increase from last year. Gross profit for the quarter climbed to $1.4 billion, up 88% from last year, while net income reached $487 million, resulting in a record-high annualized return of equity of 28%, and an EPS of $0.12 which beat analysts’ expectations of $0.10 per share.
These strong results were mainly attributed to two factors. The first is customer growth. The total number of Nu Holdings Ltd. (NYSE:NU) customers reached 105 million during the quarter, up from 65 million two years ago. This was fueled by extraordinary growth in Brazil, where an average of 1.2 million new customers are added every month.
Secondly, the active user base also expanded 27% year-over-year. This was the 11th successive quarter during which the metric showed improvement. Products and services launched for users are also being well-received. As of Q2, there were an average of 4.1 products per active customer. Average revenue per active customer also increased 6% sequentially during the quarter to reach $11.2.
Despite the strong show in Q2, the company admitted that its market shares in credit cards and loans are on the lower side. For instance, around one-third of the population in Brazil have NuBank as their primary bank account, but only 13-14% use NuBank’s credit cards. The proportion is even lower – in single digits – when it comes to loans, noted Youssef Lahrech, President and CEO, in the Q2 Earnings Call.
However, that is one minor area of concern for the company, and its overall outlook looks promising. There is consensus among Wall Street analysts on the stock’s Buy rating. Investors also remain bullish on the stock. Baron FinTech Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its first quarter 2024 investor letter:
Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.
According to Insider Monkey’s database, 59 hedge funds had a stake in the company as of Q2 2024, making it one of the best stocks under $15 to buy now.
1. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 62
Share Price as of the close of September 27: $11.48
Roivant Sciences Ltd. (NASDAQ:ROIV) is a healthcare company focused on developing innovative medicines and technologies to treat patients. It is the best stock under $15 to buy now, with 62 hedge funds having investments in the company, according to Insider Monkey’s database, as of Q2 2024.
The company showcased substantial business growth and advancements in its latest earnings call for Q1 FY25. Some of the key takeaways from the quarter included $18.4 million in product revenue for VTAMA, with prescription volumes up 20% year-over-year. The company is also anticipating approvals for the launch of VTAMA in atopic dermatitis by the end of the year.
Roivant Sciences Ltd. (NASDAQ:ROIV) also enrolled for the Phase 3 study of Brepocitinib in dermatomyositis in Q2. This is a drug that treats plaque psoriasis. Results of the study are expected during the second half of the year. Moreover, the first FcRn produced by the company has also yielded solid results, generating $1.2 billion in sales in the first year after its launch, indicating strong market demand.
Considering these factors, there is a general bullish sentiment around the stock, with consensus among Street analysts on its Strong Buy rating. They also anticipate a 52% spike in its share price compared to current levels over the next few months, expecting positive results from ongoing drug studies. There is some concern that operating costs may rise with the initiation of new trials, but the company ended Q2 strongly with $5.7 billion in cash and cash equivalents, reflecting a solid financial position.
In September this year, the company struck another hot deal, announcing the sale of its Dermavant subsidiary, along with VMATA treatment, to pharma company, Organon, for $1.2 billion. This amount is likely to help free up further cash for Roivant Sciences Ltd. (NASDAQ:ROIV) to meet its operating and research expenses associated with new drug trials.
Overall, ROIV ranks first among the 10 Best Stocks Under $15 To Buy Now. While we acknowledge the potential of ROIV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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