In this article, we will take a look at the 5 stocks under $50 to buy now. To read our analysis of the recent market activity, you can go to the 11 Stocks Under $50 to Buy Now.
5. Coupang, Inc. (NYSE:CPNG)
Share Price as of November 23: $16.31
Number of Hedge Fund Holders: 55
Coupang, Inc. (NYSE:CPNG) is a leading ecommerce company based in Seoul, South Korea. It offers a variety of ecommerce related services including same-day and next-morning delivery of groceries and general merchandise, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play.
According to Insider Monkey data on 910 hedge funds, 55 hedge funds held shares of Coupang, Inc. (NYSE:CPNG), valued at $3.6 billion, as of Q3 2023. The largest shareholder was Lee Ainslie’s Maverick Capital holding 77 million shares valued at $1.3 billion.
Like other stocks under $50 such as, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), and Teck Resources Ltd (NYSE:TECK), hedge funds are also loading up on Coupang, Inc. (NYSE:CPNG) shares.
In its Q3 2023 investor letter, Baron Funds, an investment management firm, made the following comments about Coupang, Inc. (NYSE:CPNG):
“When we originally invested in Coupang, our thesis was constructed around the company’s wide product selection, low prices, and unrivaled convenience thanks to its investments in an end-to-end infrastructure that covers over 70% of Korea’s population, enabling over 99% of orders to be delivered within one day or less, rather than the industry norm of two to three days, driving customer satisfaction, which translates to higher customer retention rates and lifetime value. We thought that Coupang would continue to gain market share in the U.S. $500 billion-plus Korean retail market, while expanding its offerings into additional categories, expanding its ecosystem via a third-party marketplace, and continuing to invest in infrastructure density to further capture inefficiencies, enhancing the customer experience, and improving profit margins. The company has since outperformed our expectations, growing its market share to 25% (#1 in the industry), despite not being a first mover, while building an unrivaled user experience with 99.8% of products delivered the next day (with the majority of them by dawn) and becoming profitable significantly faster than we expected. Our biggest takeaway from the visit was that despite all of Coupang’s success, there is still a long runway of growth ahead.”
4. Bristol-Myers Squibb Company (NYSE:BMY)
Share Price as of November 23: $49.69
Number of Hedge Fund Holders: 65
Based in New Jersey, Bristol-Myers Squibb Company (NYSE:BMY) is a biotechnology company focused on the discovery, development, and delivery of innovative medicines for serious diseases across oncology, hematology, immunology, cardiovascular disease, and fibrosis.
On October 8, Bristol-Myers Squibb Company (NYSE:BMY) announced that it had entered into a definitive merger agreement to acquire Mirati Therapeutics, Inc. (NASDAQ:MRTX), in an all-cash transaction which values the target company at $4.8 billion. The acquisition is expected to strengthen and diversify the oncology portfolio of the company.
After a quarterly performance report released on October 26 which showed an in-line topline and an adjusted EPS of $2.00 which beat consensus by $0.23, Goldman Sachs analyst Chris Shibutani lowered the price target on Bristol-Myers Squibb Company (NYSE:BMY) shares to $69 from $81, while maintaining a ‘Buy’ rating for the shares.
3. General Motors Company (NYSE:GM)
Share Price as of November 23: $28.27
Number of Hedge Fund Holders: 66
General Motors Company (NYSE:GM) is a leading multinational automotive company focused on manufacturing and sale of trucks, crossovers, cars and automobile parts and accessories across the globe. Major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling fall under its wings.
General Motors Company (NYSE:GM) posted a strong quarterly performance in Q3 2023. Its revenue increased by 5% y-o-y to $44.1 billion while net income decreased by 7% y-o-y to $3.1 billion. It managed to beat consensus estimates for EPS by $0.37 with quarterly figures of $2.20.
Following the earnings release, RBC Capital analyst Tom Narayan raised the price target for General Motors Company (NYSE:GM) shares to $48 from $47 and maintained an ‘Outperform’ rating. The target price represents a potential upside of 69.79%, based on the share price on November 23.
General Motors Company (NYSE:GM) ranks 3rd on our list of stocks under $50 to buy now. The shares of the company were owned by 66 hedge funds with a total value of $2.0 billion according to the Insider Monkey database. Harris Associates was the largest hedge fund shareholder with ownership of 35.5 million shares valued at $1.2 billion.
2. Pfizer Inc. (NYSE:PFE)
Share Price as of November 23: $30.6
Number of Hedge Fund Holders: 73
Founded in 1849, New York-based, Pfizer Inc. (NYSE:PFE) is a leading research-based biopharmaceutical company. Its product portfolio and pipeline includes several pharmaceutical therapies for primary care, specialty care, and oncology, including mRNA-based COVID-19 vaccine – COMIRNATY, and covid-19 treatment – PAXLOVID.
On October 31, Pfizer Inc. (NYSE:PFE) released its financial results for the third quarter of 2023. Its revenues declined by 42% y-o-y to $13.2 billion, while it reported a net loss of $2.4 billion. The drastic drop resulted from a decline in the company’s revenue from Comirnaty and Paxlovid. On the other hand, the revenues for non-Covid products of the company increased 10% operationally.
As of Q3 2023, 73 of the 910 hedge funds tracked by Insider Monkey were long Pfizer Inc. (NYSE:PFE), holding shares worth $2.4 billion. Prominent hedge funds such as Citadel Investment Group, D E Shaw, and Two Sigma Advisors, among others, held the most shares of the company.
1. Teck Resources Ltd (NYSE:TECK)
Share Price as of November 23: $36.57
Number of Hedge Fund Holders: 75
Vancouver, Canada-based, Teck Resources Ltd (NYSE:TECK) is a leading mining company with major business units focused on copper, zinc, and steelmaking coal. It ranks among the top 10 copper producers in the Americas and is the largest net Zinc miner globally.
On November 13, Teck Resources Ltd (NYSE:TECK) announced agreements to sell its entire stake in its steelmaking coal business at an implied value of $9.0 billion. The transaction comprises the sale of 77% stake to Glencore plc for $6.9 billion in cash, and a minority stake to Nippon Steel Corporation. The company intends to use the proceeds to strengthen its balance sheet, return cash to shareholders and to realize value from its copper growth portfolio.
As of Q3 2023, Teck Resources Ltd (NYSE:TECK) was ranked highest on our list of stocks under $50 to buy now. The stock was held by 75 hedge funds with the total shares held by hedge funds valued at $2.7 billion. Eric Mandelblatt’s Soroban Capital Partners held the most shares with ownership of 10.1 million shares valued at $434 million.
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