In this article, we discuss 5 stocks under $50 to buy. If you want to see more stocks under $50 to buy, the risk/reward, and methodology of this list, go directly to 10 Stocks Under $50 to Buy Now.
5. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 33
Conagra Brands, Inc. (NYSE:CAG) is a consumer packaged goods company whose shares have almost doubled from 2012 although the stock has been fairly volatile on the way there. For the first quarter, the company reported EPS of $0.57 on revenue of $2.9 billion versus the consensus of $0.52 on sales of $2.85 billion. For FY23, Conagra Brands, Inc. (NYSE:CAG) sees adjusted EPS growth of 1% to 5% compared to fiscal 2022. 33 hedge funds in our database owned shares of Conagra Brands, Inc. (NYSE:CAG) at the end of Q3 2022, ranking the company #5 on our list of 5 Stocks Under $50 to Buy Now.
4. Fifth Third Bancorp (NASDAQ:FITB)
Number of Hedge Fund Holders: 35
Fifth Third Bancorp (NASDAQ:FITB) is a regional bank whose shares have rallied from under $15 in 2012 to $35.25 on December 3. Given the macroeconomic headwinds this year, however, shares of Fifth Third Bancorp (NASDAQ:FITB) are down around 19% year to date and the stock could have more downside if the U.S. economy slows more than expected. In early November, Vivek Juneja of JPMorgan raised his price target on Fifth Third Bancorp (NASDAQ:FITB) to $39 from $37.5 and kept a ‘Neutral’ rating on shares. Juneja thinks some impact of a recession is already priced into shares and the analyst believes the bank’s revenues will benefit from higher interest rates.
3. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 36
Hewlett Packard Enterprise Company (NYSE:HPE) ranks #3 on our list of 10 Stocks Under $50 to Buy Now given 36 hedge funds we track owned shares of the company at the end of the third quarter. Hewlett Packard Enterprise Company (NYSE:HPE) is an enterprise tech company that provides solutions to allow customers to process data more efficiently. The company also offers computer servers and communications equipment. Although its shares initially fell after its IPO in 2015, Hewlett Packard Enterprise Company (NYSE:HPE) is around 50% higher and the stock has rallied 5.83% year to date. In Q4, the company reported adjusted EPS of $0.57 on sales of $7.9 billion versus the consensus of $0.56 on revenues of $7.42 billion. For FY23, Hewlett Packard Enterprise Company (NYSE:HPE) sees EPS of $1.96-$2.04 versus the consensus of $2.03.
2. GlaxoSmithKline plc (NYSE:GSK)
Number of Hedge Fund Holders: 37
GlaxoSmithKline plc (NYSE:GSK) is a leading pharmaceutical giant whose shares have declined around 20% from 2012. Given that GlaxoSmithKline plc (NYSE:GSK) has a dividend yield of around 4.62% currently and the stock has been a substantial dividend payer in the past, the company’s total return over the last 10 years has still been positive, however. One reason for GlaxoSmithKline plc (NYSE:GSK)’s underperformance has been due to the stock’s 21.3% year to date decline due to litigation worries over Zantac.
Aristotle Capital commented on GlaxoSmithKline plc (NYSE:GSK) in a Q3 investor letter,
GSK plc (NYSE:GSK), the U.K.‐headquartered pharmaceutical company, was the largest detractor. GSK completed the demerger of its consumer health business in July, creating the independent, publicly traded company Haleon. As discussed below, we made Haleon a full position following the spinoff. We believe the separation unlocks value and allows remaining GSK to benefit from greater focus on biopharmaceuticals and vaccines. After managing the completed spinoff, CFO Iain Mackay announced his plans to retire in May 2023, to be replaced by Julie Brown. Having served in previous CFO posts at both the luxury goods brand Burberry, as well as the pharmaceutical firm AstraZeneca, we look forward to following Ms. Brown’s initiatives at GSK.
Moreover, the company has been advancing on our catalyst of market share gains for Shingrix, its vaccine to prevent shingles. Shingrix again delivered record sales growth and continues to be a key driver of GSK’s vaccine revenue expansion. Lastly, legal concerns related to potential side effects from the heartburn medicine Zantac made headlines. Although Zantac was marketed by several firms and its associated risks have been known for a number of years, upcoming lawsuits in the U.S. received media attention this quarter. We are closely following the litigation and may have more to share in future commentaries. In the interim, we find the price adjustment to be overdone. The largest side effect‐related drug settlements have been in the single‐digit billions, while more than £20 billion in market capitalization has been removed from GSK. Despite recent share price declines, we remain confident in GSK’s ability to further penetrate markets with its current products and evolve its pipeline of innovative medicines.
1. CSX Corporation (NYSE:CSX)
Number of Hedge Fund Holders: 61
CSX Corporation (NYSE:CSX) is a leading railroad company that has done really well in the long term with the stock price rallying from less than $8 in 2012 to $32.05 on December 3. With a fairly attractive forward P/E ratio of 16.83 in addition to more expected EPS growth in the next 5 years, CSX Corporation (NYSE:CSX) could continue to be a long term winner even if it has downside if there is a recession next year. Despite the macroeconomic headwinds in 2022, CSX Corporation (NYSE:CSX)’s third quarter sales rose 18% year over year to $3.9 billion and its operating income rose 10% year over year to $1.58 billion. Diluted EPS rose 21% year over year to $0.43. With 61 hedge funds in our database owning shares, CSX Corporation (NYSE:CSX) ranks #1 on our list of 10 Stocks Under $50 to Buy Now.
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