In this article, we will take a look at 11 stocks under $50 to buy now. To skip our analysis of the recent market activity, you can go directly to see the 5 Stocks Under $50 to Buy Now.
The equity markets in United States posted another week of positive performance which marks the fourth consecutive week of positive performance after months of tumultuous returns. The continual resurgence of the markets stems from several factors including a hiatus in interest rate hikes since July, better than expected inflation, jobs, and other figures.
S&P 500 Index has gained 10.73% during the last four weeks, while NASDAQ-100 Index has gone up 12.7% during the same period. A significant portion of the gains in 2023 can be attributed to the rise of the “Magnificent Seven”, i.e., Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Tesla, Inc. (NASDAQ:TSLA). These stocks, combined, have soared an average of 70% year-to-date, compared to a measly average 6% for the rest of the S&P 500 constituents.
Individual stocks, based on their respective catalysts, have shown outstanding performance this year. A prime example is the meteoric rise of NVIDIA Corporation (NASDAQ:NVDA). The stock has gone up nearly 234% year to date riding on the artificial intelligence wave. The company posted another record quarterly revenue, which was more than triple from a year ago, surpassed estimates, and reached a whopping $18 billion. This supports the belief that investment in quality companies with quality products and market advantage can garner positive results even in the worst of times.
An important factor to look up to this week is the consumer spending trend during Black Friday and Cyber Monday events. According to the National Retail Federation, nearly 182 million people are forecasted to shop across the United States, both in-store and online, during this period. Positive turnout could lead to better than expected results for consumer spending stocks which have had a resilient year so far. S&P 500 Consumer Discretionary Index is up 33% year to date and looks ready for further growth.
Stocks trading at prices below $50 can be a good addition to an investor’s portfolio based on their affordability. Despite being affordable, some of these low priced stocks offer significant upside potential. Our list of 11 stocks under $50 to buy now includes leading companies across multiple sectors, including Chinese ecommerce giant JD.Com, Inc. (NASDAQ:JD), South Korean ecommerce company Coupang, Inc. (NYSE:CPNG), global ride hailing leader Teck Resources Ltd (NYSE:TECK), and General Motors Company (NYSE:GM), among others.
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Methodology
We used stock screeners to shortlist stocks that were trading at a share price of less than $50. To find quality stocks among the shortlisted stocks, we first narrowed down our selection by retaining only stocks that were not overbought, had buy or better recommendations, positive sales growth, and upside potential based on average price targets. We then corroborated the list with our database of stock ownership by leading hedge funds. The final step involved the ranking of the identified list of stocks based on their popularity among the 910 hedge funds tracked by Insider Monkey. The list of 11 stocks under $50 to buy now is ranked in the ascending order of the number of hedge funds that owned a stock.
Stocks Under $50 to Buy Now
11. Toast, Inc. (NYSE:TOST)
Share Price as of November 23: $14.11
Number of Hedge Fund Holders: 46
Toast, Inc. (NYSE:TOST), based in Boston, Massachusetts, is a software company that provides a cloud based restaurant point of sale and management software system to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management.
On November 7, Toast, Inc. (NYSE:TOST) released its financial results for Q3 2023. Its revenues increased by 37% y-o-y to $1.0 billion, while net loss declined by 68% y-o-y to $31 million. The company also upgraded its full year outlook for revenue to $3.83 billion to $3.86 billion and adjusted EBITDA to $38 million to $48 million.
As of Q3 2023, Toast, Inc. (NYSE:TOST) shares were held by 46 hedge funds with the total shares held by them valued at $1.6 billion. Mick Hellman’s HMI Capital was its largest hedge fund shareholder with ownership of 14.4 million shares valued at $269 million.
10. Match Group, Inc. (NASDAQ:MTCH)
Share Price as of November 23: $32.03
Number of Hedge Fund Holders: 48
Dallas, Texas-based Match Group, Inc. (NASDAQ:MTCH) is an internet and technology company operating a portfolio of more than 40 leading dating services apps including Match, OkCupid, Tinder, and Hinge, among others.
On October 31, Match Group, Inc. (NASDAQ:MTCH) reported the financial results for Q3 2023. It generated total revenues of $882 million and a net income of $164 million.
Following the earnings release, KeyBanc analyst Justin Patterson lowered the price target on Match Group, Inc. (NASDAQ:MTCH) shares to $56 from $60 but maintained an ‘Overweight’ rating for the shares.
On April 28, the board of directors of Match Group, Inc. (NASDAQ:MTCH) approved a new share repurchase program for repurchase of up to $1.0 billion in its common stock. The company repurchased $445 million worth of its shares during the first three quarters of 2023 and currently has $667 million remaining under its $1 billion repurchase program.
9. Noble Corporation (NYSE:NE)
Share Price as of November 23: $45.10
Number of Hedge Fund Holders: 48
Sugar Land, Texas-based Noble Corporation (NYSE:NE) is one of the largest offshore drilling contractors in the world. It performs contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities worldwide.
On October 31, Noble Corporation (NYSE:NE) released its financial results for Q3 2023 which surpassed consensus estimates by a significant margin with a revenue of $697 million and an EPS of $1.09. The top and bottom line figures exceeded estimates by $60 million and $0.25, respectively.
Noble Corporation (NYSE:NE) initiated quarterly dividends in July this year at an annualized rate of $1.20 per share. The Board of Directors of the company raised the dividend amount to $0.40 per share for Q4 2023.
Like other stocks such as Pfizer Inc. (NYSE:PFE), General Motors Company (NYSE:GM), and Bristol-Myers Squibb Company (NYSE:BMY), the shares of Noble Corporation (NYSE:NE) are among the stocks under $50 to buy now.
8. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Share Price as of November 23: $38.05
Number of Hedge Fund Holders: 50
Based in Phoenix, Arizona, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is a leading business services provider specializing in temporary space solutions. Its product offerings include modular office complexes, mobile offices, classrooms, temporary restrooms, portable storage containers, and climate-controlled storage units, among others.
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) mostly in-line results in Q3 2023. Following the earnings release, Deutsche Bank lowered the price target on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) shares to $51 from $53 and maintained a ‘Buy’ rating.
During the last twelve months, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) has invested $494 million for tuck-in acquisitions. Notable acquisitions include 616 Global Clearspans, a clearspan structure company based in Tucson, Arizona, and temporary cold storage solutions providers Cold Box based in California and A&M Cold Storage based in Ohio, among others.
7. Devon Energy Corporation (NYSE:DVN)
Share Price as of November 23: $45.51
Number of Hedge Fund Holders: 52
Devon Energy Corporation (NYSE:DVN) is a leading oil and gas producer based in Oklahoma with a multi-basin portfolio underpinned by world-class Delaware Basin position.
On November 7, the board of directors of Devon Energy Corporation (NYSE:DVN) declared a quarterly dividend of $0.77 per share which includes fixed as well as a variable component. This represents a dividend yield of 6.56%, the highest on our list of 11 stocks under $50 to buy now. The company has repurchased 40 million of its shares since late 2021 at a total cost of $2.1 billion.
As of Q3 2023, Devon Energy Corporation (NYSE:DVN) shares were held by 52 hedge funds with the total shares held by them valued at $864 million.
Like other stocks such as Pfizer Inc. (NYSE:PFE), General Motors Company (NYSE:GM), and Bristol-Myers Squibb Company (NYSE:BMY), the shares of Devon Energy Corporation (NYSE:DVN) are among the stocks under $50 to buy now.
6. Sea Limited (NYSE:SE)
Share Price as of November 23: $36.66
Number of Hedge Fund Holders: 55
Singapore-based Sea Limited (NYSE:SE) is a leading consumer internet company in Southeast Asia and Taiwan. It operates 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) released its quarterly results for Q3 2023. Its total revenues increased by 5% y-o-y to $3.3 billion, while net loss declined by 75% y-o-y to $144 million. It reported a normalized EPS of $0.04 for the quarter, which missed the consensus estimates by $0.05.
As of Q3 2023, 55 hedge funds out of the 910 hedge funds tracked by Insider Monkey were bullish on Sea Limited (NYSE:SE) and held shares valued at $2.2 billion. Tiger Global Management LLC held the highest number of shares among hedge funds with ownership of 11.7 million shares, valued at $514 million.
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Disclosure: None. 11 Stocks Under $50 To Buy Now is originally published on Insider Monkey.
