In this article, we will be looking at the 5 best stocks under $50. If you want to read our detailed analysis of these stocks, go directly to the 12 Best Stocks Under $50.
5. Ford Motor Company (NYSE: F)
Number of Hedge Fund Holders: 49
Ford Motor Company (NYSE: F) is an automobile manufacturer that is also dabbling in the EV business. The company provides Ford trucks, cars, sport utility vehicles, EVs, and Lincoln luxury vehicles across the globe. It ranks 5th on our list of the best stocks under $50.
This June, Ford Motor Company (NYSE: F) EV sales were reported to have surged by 117%, setting a new all-time-high record for first-half sales with 56,570 vehicles sold. JP Morgan also upped its price target on the stock to a Street-high $18, with analyst Ryan Brinkman commenting that Ford Motor Company (NYSE: F) shares are attractive because of their valuation and the company’s new vehicle lineups. In the first quarter of 2021, Ford Motor Company (NYSE: F) had an EPS of $0.89, beating estimates by $0.68. The company’s revenue was $33.55 billion, up 7.06% year over year and beating estimates by $1.34 billion. The stock has a forward PE ratio of 11.31 and has gained 68.89% in the past 6 months and 75.23% year to date. Ford Motor Company (NYSE: F) also has a gross profit margin of 8.07%.
As of the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ford Motor Company (NYSE: F), with a total stake value of about $2.19 billion. This is compared to 41 hedge funds in the previous quarter, with a total stake value of roughly $1.65 billion.
4. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 63
AT&T Inc. (NYSE: T) is a telecommunications, media, and technology services provider operating worldwide. The company has three segments: Communications, WarnerMedia, and Latin America. It ranks 4th on our list of the best stocks under $50.
This June, AT&T Inc. (NYSE: T) announced that it would be moving its 5G mobile network to Microsoft Corporation’s (NASDAQ: MSFT) Azure for Operator’s cloud in a strategic move. The company’s WarnerMedia segment is also bringing in $1.4 billion by selling the Playdemic platform to Electronic Arts Inc. (NASDAQ: EA). The stock also pays a regular high dividend with a 7.23% yield, making it a good income investment choice. Additionally, Tigress Financial reiterated its Buy rating on the stock this July with a 12-month price target of $36, in light of the firm’s positive response to news of the WarnerMedia sale.
In the first quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.86, beating estimates by $0.08. The company’s revenue was $43.94 billion, up 2.71% year over year and beating estimates by $1.27 billion. The stock has a forward PE ratio of 9.31 and has gained 0.52% in the past month.
As of the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T), with a total stake value of about $2.7 billion. This is compared to 58 hedge funds in the previous quarter, with a total stake value of roughly $1.04 billion.
3. Pfizer Inc. (NYSE: PFE)
Number of Hedge Fund Holders: 65
Pfizer Inc. (NYSE: PFE) is a healthcare sector company manufacturing biopharmaceutical products across the globe. The company’s vaccine released in collaboration with BioNTech is among the most effective and widely distributed vaccines against the coronavirus. The stock ranks 3rd on our list of the best stocks under $50.
In June, the consensus price target on Pfizer Inc. (NYSE: PFE) was $42.30, roughly 7% more than the share price for the stock at the time. The company has made a $40 million equity investment in Spero Therapeutics, alongside signing a licensing agreement for the latter’s SPR206 as well. In the first quarter of 2021, Pfizer Inc. (NYSE: PFE) had an EPS of $0.93, beating estimates by $0.15. The company’s revenue was $14.58 billion, up 21.23% year over year and beating estimates by $961.32 million. The stock has gained 7.76% in the past 6 months and 7.93% year to date and it has a forward PE ratio of 10.74. Pfizer Inc. (NYSE: PFE) has a gross profit margin of 76.66%.
As of the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Pfizer Inc. (NYSE: PFE), with a total stake value of about $2.01 billion. This is compared to 63 hedge funds in the previous quarter, with a total stake value of roughly $1.84 billion.
ClearBridge Investments, an investment management firm, mentioned Pfizer Inc. (NYSE: PFE) in its first-quarter 2021 investor letter. Here’s what they said:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
2. General Electric Company (NYSE: GE)
Number of Hedge Fund Holders: 68
General Electric Company (NYSE: GE) is a high-tech industrial company operating across the globe. The company offers heavy-duty and aero-derivative gas turbines for utilities, independent power producers, and industrial applications, among other products and services. It ranks 2nd on our list of the best stocks under $50.
On July 1st, Citigroup commented on General Electric Company (NYSE: GE), saying that the company was making progress on its turnaround plan, and maintaining its Buy rating on the stock alongside its $17 price target. General Electric Company (NYSE: GE) is also the company making engines for both Boeing and Airbus jets, and hence the stock rallied in light of United Airlines’ mass order of over 200 of these jets.
UBS also has a Buy rating on General Electric Company (NYSE: GE) with a $17 price target, with analyst Markus Mittermaier expecting adjusted free cash flow for the company to be $6.4 billion next year and $8.6 billion in 2023. In the first quarter of 2021, General Electric Company (NYSE: GE) had an EPS of $0.03, beating estimates by $0.02. The company’s revenue was $17.12 billion, missing estimates by -$363.49 million, and it has a gross profit margin of 16.98%. The stock has also gained 17.61% in the past 6 months and 27.6% year to date.
As of the end of the first quarter of 2021, 68 hedge funds out of the 866 tracked by Insider Monkey held stakes in General Electric Company (NYSE: GE), with a total stake value of about $6.16 billion. This is compared to 69 hedge funds in the previous quarter, with a total stake value of roughly $5.58 billion.
Vulcan Value Partners, an investment management firm, mentioned General Electric Company (NYSE: GE) in its first-quarter 2021 investor letter. Here’s what they said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
1. Bank of America Corporation (NYSE: BAC)
Number of Hedge Fund Holders: 97
Bank of America Corporation (NYSE: BAC) is a provider of banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The company operates globally and ranks 1st on our list of the best stocks under $50.
This June, Bank of America Corporation (NYSE: BAC) announced plans to increase its quarterly common stock dividend by about 17% for the third quarter of 2021, and being a regular dividend yielder with a 1.75% dividend yield, it can be a good option for income investors as well.
In light of the Federal Reserve’s stress tests, Bank of America Corporation (NYSE: BAC) was among the bank stocks witnessing notable gains and led other financials stocks this June. In the first quarter of 2021, Bank of America Corporation (NYSE: BAC) had an EPS of $0.86, beating estimates by $0.21. The company’s revenue was $22.82 billion, beating estimates by $959.56 million. The stock has also gained 27.99% in the past 6 months and 37.03% year to date, and it has a forward PE ratio of 13.56.
As of the end of the first quarter of 2021, 97 hedge funds out of the 866 tracked by Insider Monkey held stakes in Bank of America Corporation (NYSE: BAC), with a total stake value of about $45.3 billion. This is compared to 99 hedge funds in the previous quarter, with a total stake value of roughly $35.3 billion.
ClearBridge Investments, an investment management firm, mentioned Bank of America Corporation (NYSE: BAC) in its first-quarter 2021 investor letter. Here’s what they said:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
You can also take a look at 10 Cheap Stocks To Invest In (February 2021) and 10 Best Cheap Stocks To Buy Now.
