In this article, we discuss 5 best stocks under $100. If you want to see more best stocks under $100, the risk/reward, and methodology of this list, go directly to 15 Best Stocks Under $100.
5. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 87
Wells Fargo & Company (NYSE:WFC) is one of the largest banks in the United States. Given mortgage rates have increased considerably, Wells Fargo & Company (NYSE:WFC)’s mortgage business didn’t do very well in 2022 and the bank’s overall earnings per share declined. Nevertheless, Wells Fargo & Company (NYSE:WFC)’s net interest income has increased as a result of the higher interest rates and the bank expects to resume stock buybacks in the first quarter. Although there could be near term headwinds if the economy slows, Wells Fargo & Company (NYSE:WFC) has a quality business that could grow over time.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 99
The Walt Disney Company (NYSE:DIS) ranks #4 on our list of 15 Best Stocks Under $100 given 99 hedge funds in our database owned shares of the entertainment giant at the end of Q4. In terms of valuation, The Walt Disney Company (NYSE:DIS) has a fairly attractive forward P/E of 18 and future potential growth in the metaverse and also in Disney+ which management estimates will potentially achieve profitability by the end of FY2024. Previously, heavy spending on Disney+ has led to substantial subscriber growth but also fairly substantial segment costs as well. For those of you interested, check out 10 Most Promising Metaverse Stocks to Buy.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Bank of America Corporation (NYSE:BAC) is one of the world’s leading financial institutions, serving individual consumers and businesses with a full range of banking, investing, asset management and other financial and risk management products and services. For Q4 2022, Bank of America Corporation (NYSE:BAC) had net income of $7.1 billion or $0.85 per diluted share, compared to $7 billion or $0.82 per diluted share for Q4 2021 with higher net interest income being one reason. In February, Bloomberg reported that Bank of America Corporation (NYSE:BAC) is planning to cut jobs in its investment bank with potentially under 200 bankers affected globally.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is perhaps the riskiest stock on our list of 15 Best Stocks Under $100 given AI search from Microsoft’s Bing could take market share from Google and also raise costs. Although it has other popular businesses, search is Alphabet Inc. (NASDAQ:GOOG)’s biggest and most profitable business. Any disruption to search could affect Alphabet Inc. (NASDAQ:GOOG)’s profits and valuation.
Nevertheless, Alphabet Inc. (NASDAQ:GOOG) arguably also has a lot of potential because it is one of the leaders in AI. If its future AI products can offset any search headwinds in terms of profitability, Alphabet Inc. (NASDAQ:GOOG) could be attractive given its forward P/E ratio of 15.54 as of March 8.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) ranks #1 on our list of 15 Best Stocks Under $100 given 240 hedge funds in our database owned shares of the e-commerce and cloud leader at the end of Q4. In terms of e-commerce, Amazon.com, Inc. (NASDAQ:AMZN) is expanding its same day delivery business to potentially increase demand. In terms of its cloud business, Amazon.com, Inc. (NASDAQ:AMZN) is positioned to benefit from more AI processing demand in the future given AWS’ leading market share in the cloud.
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