7 Best Low Cost Stocks To Buy Under $50

4. Schlumberger Limited (NYSE:SLB)

Share Price: $42.29

Forward P/E Ratio: 11.77 

Earnings Growth This Year: 17.10%  

Number of Hedge Fund Holders: 67

Schlumberger Limited (NYSE:SLB) is an international technology company that focuses on the oil and gas industry. It mainly operates through 4 main business segments namely Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The comprehensive range of products and services offered by the company ensures that it supports oil and gas exploration at every stage with the latest artificial intelligence and data analytics technologies.

It is one of the best low cost stocks to buy under $50. The stock is trading at only 12 times its forward earnings, with earnings expected to grow by 17% during the year.

Schlumberger Limited (NYSE:SLB) has been making significant breakthroughs in the energy sector using artificial intelligence. It recently launched its Lumi data and AI platform which integrates AI capabilities into energy sector workflows. The platform provides high-quality data to help improve the collaboration and decision-making process for the industry.

Moreover, the company has also announced its collaboration with the famous chip maker NVIDIA to develop generative AI solutions that will specifically focus on the energy sector. The solution developed by the collaboration will be integrated into Schlumberger Limited’s (NYSE:SLB) existing platforms to enhance their capabilities.

These advancements topped with its robust financial performance put the company on a path for long-term growth. During the second quarter of 2024, the company improved its revenue by 13% year-over-year and net income by 8%. It also has strong cash flow generation capabilities and made $1.44 billion from operations and $776 million as free cash flow.

Artisan Value Fund stated the following regarding Schlumberger Limited (NYSE:SLB) in its fourth quarter 2023 investor letter:

“On the downside in Q4, our two energy holdings, Schlumberger Limited (NYSE:SLB), the world’s largest oil services company, and EOG Resources, a US shale-focused E&P company, were weak along with the broader sector. We have stringent criteria for business quality, which is particularly important in commodities sectors as these businesses do not control the underlying commodity prices, which can be volatile. We expect Schlumberger to continue to successfully navigate market volatility and deliver on its free cash flow and profit margin growth objectives from combination of activity growth and pricing gains. The stock has been among our top contributors since we initiated our position in December 2020.”