7 Best Low Cost Stocks To Buy Under $50

2. Pfizer Inc. (NYSE:PFE)

Share Price: $29.09

Forward P/E Ratio: 10.97

Earnings Growth This Year: 43.50%  

Number of Hedge Fund Holders: 84

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that engages in researching, developing, and selling medicines. This healthcare stock is trading at an incredibly low price-to-earnings ratio of 11, whereas analysts expect its earnings to grow by 43.50% during the year.

The company is focused on developing its pipeline of new medicines and increasing its market reach. As of the second quarter of 2024, the number of patients impacted by the company’s medicines stood at more than 192 million on a year-to-date basis.

Pfizer Inc. (NYSE:PFE) has also been active in acquiring other biotech companies to develop a world-class research and production portfolio. It recently acquired Seagen, which is a biotechnology firm. The acquisition is expected to add more than $10 billion in revenues by 2030.

Speaking of revenue, the company generated around $13.3 billion in revenue for the second quarter which was up 3% operationally. Moreover, its large-scale production levels are helping reduce the cost of sales which was down by 6% operationally.

In addition to this Pfizer Inc. (NYSE:PFE) also offers a stable dividend yield of around 5.7%. This high dividend yield is expected to benefit the company when combined with the recent interest rate cuts. Its cheap valuation makes it one of the best low cost stocks to buy under $50.

Parnassus Value Equity Fund stated the following regarding Pfizer Inc. (NYSE:PFE) in its first quarter 2024 investor letter:

“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”