7 Best Low Cost Stocks To Buy Under $50

5. Comcast Corporation (NASDAQ:CMCSA)

Share Price: $41.64

Forward P/E Ratio: 9.78 

Earnings Growth This Year: 5.50%  

Number of Hedge Fund Holders: 61

Comcast Corporation (NASDAQ:CMCSA) is one of the largest media and internet providers in the United States. It operates its media and content creation wings through renowned brands such as Telemundo, Universal Pictures, and NBC. It also operates various entertainment theme parks within the country.

The traditional media distribution channels are fading away internationally, Comcast Corporation (NASDAQ:CMCSA) has come out strong with its internet services segment to keep its profitability and revenue generation engines running. It has around 32 million broadband customers, which places it as a market leader in the United States.

The connections continued to grow during the second quarter of 2024, its wireless lines reached a 12% penetration rate adding around 322,000 new connections. The company also enjoys a healthy average revenue per user of 3.6% and has been able to maintain a historic average of 3% to 4%, indicating its operational robustness.

Lastly, although the overall revenue of the company came in with a decline of 2.7% year-over-year during the latest quarter, the earnings per share were above analyst expectations by around 9%.

Comcast Corporation (NASDAQ:CMCSA) is one of the best low-cost stocks to buy under $50. It was trading at $41.64 at the time of this writing. Moreover, the stock has a forward price-to-earnings ratio of only 10, making it undervalued at current levels.

ClearBridge Large Cap Value Strategy made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q3 2023 investor letter:

“Long-term holdings Charter and Comcast Corporation (NASDAQ:CMCSA) delivered strong second-quarter results relative to expectations; their stable recurring revenue streams and undemanding valuations were rewarded in the current environment. Cable multiples compressed over the past 24 months on fears of heightened competition in their core broadband business from fixed wireless and fiber providers. While fiber remains a competitive alternative to cable broadband over the long term, high upfront investments and a materially higher cost of capital are resulting in slower buildouts than previously expected. Fixed wireless also continues to gain traction, particularly in rural markets, but share gains also appear to be moderating. At the same time, both Comcast and Charter are expanding their footprints into rural and adjacent markets while gaining wireless market share, leveraging their mobile virtual network operator agreements with Verizon. We think both cable companies are well-positioned to continue to grow while generating substantial free cash flows. We added to Comcast during the quarter.”