In this article, we will take a look at the 10 Best Stocks Under $50 to Buy Right Now.
From a certain perspective, domestic equities are off to a strong start this year. Despite a large selloff on February 21, the S&P 500 has gained a healthy 2.2% in less than two months, and the Nasdaq Composite and Dow Jones Industrial Average are not far behind. If they can keep this momentum going, they’re probably in for another successful year. Looking at the market in detail however, US stock indexes appear to be riding the coattails of the significant lead they built up after Trump’s election on November 5 last year, much unlike their overseas competitors. According to JPMorgan, the relative underperformance of US stocks this year represents a 10% – 20% reversal of the pro-US investment pattern seen from April 2023 until the end of last year. Furthermore, the current excitement around Chinese AI firm DeepSeek has caused investors to reconsider US equity values, making Chinese tech stocks more tempting in the short term.
Inflation expectations have also risen, with the one-year projected inflation rate for US consumers rising to 4.3% in February from 3.3% in January. This increase in inflation expectations, along with a slowing economy, has sparked fears about stagflation, which is characterized as stalled growth and rising prices. According to a Bank of America poll of global fund managers published on February 18, the number of investors expecting stagflation in the coming year has hit a seven-month high. At the same time, investors remained bullish on stocks, perceiving a trade war as a low-probability risk.
However, it would be foolish to rule out US stocks completely, given that US shares outperformed their international counterparts from the 2008 financial crisis to the end of 2024. Although international markets appear to be the hot place to be right now, analysts have much to like about US equities, particularly as S&P 500 companies report their most profitable quarter in years, with Wall Street projecting double-digit profit growth this year. According to Richard Ward, Chief Investment Officer of Curated Wealth Partners, overseas companies have performed better recently because stock pickers are seeking for bargains, not because of their fundamentals. Ward believes that investors should stay in US markets and look towards lower-cost sectors such as small caps and financials instead. He added:
“The US is the best place to be because we continue to benefit from innovation and a healthier economy.”
Photo by Tima Miroshnichenko on Pexels
Our Methodology
For this list, we made use of stock screeners to note down companies with stocks that are trading at less than $50 per share. These companies were then narrowed down based on their popularity among hedge funds. The stocks on this list are ranked in ascending order based on hedge fund sentiment around them, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. UiPath Inc. (NYSE:PATH)
Share Price as of February 20: $14.38
Number of Hedge Fund Holders: 40
UiPath Inc. (NYSE:PATH) is a multinational software company specializing in robotic process automation (RPA). The company automates manual procedures by providing a workflow designer, recording capabilities, and visual programming tools. UiPath also supports third-party APIs, allowing users to integrate different systems into automated workflows.
Earlier on January 10, Barclays reduced its price target for UiPath Inc. (NYSE:PATH) to $15 from $16, maintaining an Equal Weight rating on the shares as part of a software forecast for 2025. The firm predicts that IT spending would improve in 2025. This means that software can be a relative outperformer if forecasts rise over the year and valuation levels remain in line with historical levels.
9. The Kraft Heinz Company (NASDAQ:KHC)
Share Price as of February 20: $29.79
Number of Hedge Fund Holders: 43
The Kraft Heinz Company (NASDAQ:KHC) is a global leader in the food and beverage industry that was formed in 2015 through the merger of Kraft Foods and Heinz. The firm produces a wide range of products, including dairy, meat, sauces, beverages, and other commodities.
The Kraft Heinz Company (NASDAQ:KHC) announced mixed results in Q4 2024, with lower revenue offset by profitability improvements. The company reported adjusted EPS of $0.84, up $0.06 from market expectations, owing mostly to unanticipated tax advantages and a lower number of outstanding shares. However, its Q4 revenue was announced at $6.58 billion, a 5% decrease year-over-year and slightly lower than the predicted $6.66 billion, owing to decreased organic sales. Following these results, Stifel revised its outlook for The Kraft Heinz Company (NASDAQ:KHC), cutting the price target from $32 to $31, while keeping a Hold rating on the stock.
8. Devon Energy Corporation (NYSE:DVN)
Share Price as of February 20: $37.57
Number of Hedge Fund Holders: 55
Devon Energy Corporation (NYSE:DVN), founded in 1971 and based in Oklahoma City, Oklahoma, is a major name in the United States energy industry, focusing on the exploration, development, and production of oil, natural gas, and natural gas liquids.
On February 19, Mizuho Securities boosted Devon Energy Corporation’s (NYSE:DVN) price objective from $47 to $49 while maintaining an Outperform rating. The adjustment comes after the company released its 2025 capital plan, which calls for about 5% less spending and around 2% greater output volumes than originally planned.
Devon Energy Corporation (NYSE:DVN) outperformed expectations in the fourth quarter of 2024, with EBITDA and free cash flow above averages by around 9% and 3%, respectively. According to the company’s management, the Grayson Mills integration is delivering results that surpass the $50 million target.
7. United States Steel Corporation (NYSE:X)
Share Price as of February 20: $39.04
Number of Hedge Fund Holders: 63
United States Steel Corporation (NYSE:X) is a steel producer based in Pittsburgh, Pennsylvania. It distributes flat-rolled and tubular steel products to customers in a variety of industries, including automotive, construction, consumer, electrical, and industrial.
On February 5, BMO Capital Markets raised its outlook on United States Steel Corporation (NYSE:X), with analyst Étienne Ricard raising the price target to $55 from $52, while maintaining an Outperform rating on the company’s stock. Ricard’s study highlighted US Steel’s impressive fourth-quarter performance, with organic top-line growth of 17%, indicating a period of strong execution for the company. The analyst’s research stated that all four of US Steel’s high-growth divisions produced record results and now account for about half of the company’s total sales of $15.64 billion.
United States Steel Corporation (NYSE:X) is at an important point of late, with macroeconomic and geopolitical forces working in its favor, especially in light of President Trump’s tariffs on steel and aluminum imports. Moreover, the company recently completed a significant CAPEX cycle, with Big River 2 coming online, a plant that would cost $10 billion to build today, strengthening the company’s competitive position.
6. Hewlett Packard Enterprise Co. (NYSE:HPE)
Share Price as of February 20: $21.85
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) offers data services worldwide through its diverse segments, which include Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments. The company also provides software-defined infrastructure (SDI) solutions to assist enterprises with network management, storage, automation, and software development and deployment.
On February 13, HPE announced the shipment of its first NVIDIA Blackwell family-based solution, the NVIDIA GB200 NVL72. HPE’s rack-scale system is intended to assist service providers and major companies in rapidly deploying very large, sophisticated AI clusters with innovative, direct liquid cooling technologies to maximize efficiency and performance. Moreover, the company is known as a pioneer in direct liquid cooling technology, having developed seven of the world’s top ten fastest supercomputers.
Hewlett Packard Enterprise Company’s (NYSE:HPE) Q4 revenue climbed 15.1% year-over-year to $8.46 billion, led by greater sales in artificial intelligence and GreenLake. HPE’s server segment sales increased 32% year-over-year and 10% sequentially to $4.7 billion, owing to strong demand for its AI servers as well as growth in server systems. The division’s operating profit margin was 11.6%, up 150 bps from the year-ago quarter and 80 bps from the preceding quarter. Estimates for the company’s first-quarter fiscal 2025 sales and non-GAAP earnings are $7.67 billion and $0.48 per share, respectively.
5. AT&T Inc. (NYSE:T)
Share Price as of February 20: $26.24
Number of Hedge Fund Holders: 80
AT&T Inc (NYSE:T), the world’s largest telecommunications company and the largest provider of mobile telephone services in the United States, is a multinational conglomerate holding company based in Texas that provides global telecommunications, media, and technology services.
AT&T Inc. (NYSE:T) reported decent results for the fourth quarter of 2024, with revenues reaching $32.3 billion, an increase of 0.6% from the same quarter last year. In addition, the company managed to rake in $5.3 billion in operational income and $4.4 billion in net profit. AT&T also recorded an operational cash flow of $11.9 billion in the quarter, with a free cash flow of $4.8 billion.
On January 28, TD Cowen raised its price target for AT&T Inc. (NYSE:T) to $29 from $26, while maintaining a Hold rating on the company. The change reflected a favorable reaction to AT&T’s recent performance and market developments. AT&T’s Analyst Day provided no significant developments, although the company’s FCF target for 2026 is regarded as aggressive and is likely to gain from working capital support. The firm also stated that tax regulations are expected to bring considerable assistance to the telecommunications company.
TCW Funds stated the following about AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
4. Comcast Corporation (NASDAQ:CMCSA)
Share Price as of February 20: $36.48
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA) is a media, entertainment, and communications conglomerate with three business units: Cable Communications, NBCUniversal, and Sky, Europe’s top entertainment provider.
On January 31, Loop Capital revised its outlook for Comcast Corporation (NASDAQ:CMCSA), lowering the price target from $53 to $50 while maintaining a Buy rating. Loop Capital analyst Alan Gould’s decision followed Comcast’s fourth-quarter earnings release, which indicated a shortfall on numerous key performance parameters. Comcast’s fourth-quarter earnings revealed a decline in broadband and cellular subscribers, with a modest miss on Peacock subscribers. Despite these setbacks, the company outperformed forecasts in terms of sales, EBITDA, free cash flow, and earnings per share. Despite the poor broadband results, Loop Capital believes the market has adjusted its expectations for Comcast Corporation (NASDAQ:CMCSA).
3. Intel Corporation (NASDAQ:INTC)
Share Price as of February 20: $25.72
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC), based in Santa Clara, California, is a major American multinational technology company well-known for its expertise in semiconductor chip manufacture, notably the x86 family of instruction sets, which are extensively used in personal computers.
On February 18, Cantor Fitzgerald upgraded Intel Corporation’s (NASDAQ:INTC) price target from $22 to $29, while maintaining a Neutral rating on the stock. Analysts at Cantor Fitzgerald say Intel’s situation is complicated, but recent news reports imply that a separation of Intel’s DesignCo and Intel Foundry Services (IFS) is possible. They added that the reorganization process looks to be in its early stages, with Intel’s new leadership moving forward with the plans. The company further expects TSMC to agree to acquiring a majority stake in Intel’s factories, a move requested by the Trump administration itself.
Intel’s Q4 2024 report revealed that its Data Center and Artificial Intelligence division, which offers processors to cloud providers and corporate server farms, generated $3.39 billion in revenues. On the other hand, Intel’s Network and Edge segment generated $1.62 billion, up 10% and above the $1.5 billion forecast. Intel Corporation (NASDAQ:INTC) also concluded a $7.86 billion US government grant to assist manufacturing in four states.
2. Pfizer Inc. (NYSE:PFE)
Share Price as of February 20: $25.89
Number of Hedge Fund Holders: 92
Pfizer Inc. (NYSE:PFE) is a leading global pharmaceutical company that researches, manufactures, and markets prescription drugs, vaccines, and consumer healthcare products, with a focus on treatments for a wide variety of medical problems, from common illnesses to uncommon disorders.
On February 11, Jefferies analyst Akash Tewari raised the price target for Pfizer Inc. (NYSE:PFE) from $33 to $34, while maintaining a Buy rating on the company. The change followed the publication of Pfizer’s abstract on mevrometostat (EZH2i) at the American Society of Clinical Oncology Genitourinary (ASCO GU) meeting. Tewari stated that the newly revealed findings may have good implications for Pfizer’s current Phase 3 studies in both post-abiraterone and first-line metastatic castration-resistant prostate cancer (mCRPC) situations.
1. Bank of America Corporation (NYSE:BAC)
Share Price as of February 20: $46.01
Number of Hedge Fund Holders: 113
Bank of America Corporation (NYSE:BAC) is a financial holding company that offers a variety of services, including savings accounts, deposits, wealth and cash management, investment funds, internet banking, and other financial products.
On January 7, Truist Securities initiated coverage of Bank of America Corporation (NYSE:BAC), giving a Buy rating and a $52 price target to the stock. According to the firm’s estimate, Bank of America is positioned for expansion, with net interest income (NII) expected to rise by 4-5% and retail deposit growth to resume. This predicted result represents a reversal from what was previously termed as a “lost year” for positive operational leverage.
Bank of America Corporation (NYSE:BAC) announced strong profitability for the fourth quarter of 2024, with revenues of $25.3 billion, up from $22 billion in the same quarter the previous year. Net income more than quadrupled to $6.7 billion, up from $3.1 billion the year before. The bank also extended its client base, opening 213,000 new consumer checking accounts, marking the sixth consecutive year of quarterly growth.
While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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