Stocks under $50 present investors with an interesting decision. On the one hand, these stocks are inexpensive enough that an investor can accumulate a significant amount of shares with a modest investment.
If these stocks have a significant catalyst, they can quickly turn this modest investment into the core of a growing portfolio. This potential growth is why investors should never forget that many of the Magnificent 7 stocks were trading under $50 at one time.
However, there are times when stocks are cheap for a reason. That means that you can lose some or all of your investment. That's why investors should take extra care to understand why stocks under $50 are trading at that level.
This special presentation looks at seven of the best stocks to buy under $50. For each stock, we'll give you a reason to consider owning it and do our best to mention any reasons for caution.
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- DigitalBridge Group
- Uranium Energy
- Verizon Communications
- Delta Air Lines
- Bristol-Myers Squibb
- SLB
- Dyne Therapeutics
#1 - DigitalBridge Group (NYSE:DBRG)
DigitalBridge Group (NYSE: DBRG) is a picks-and-shovels way for investors to capitalize on the growing demand for artificial intelligence (AI) applications. But instead of providing the actual picks and shovels, DigitalBridge invests in the companies that make the picks and shovels. In the case of AI, that means the data centers, fiber networks, and edge infrastructure that are essential to the growth of AI.
In its fourth quarter and full-year 2023 earnings report, DigitalBridge reported record growth in its pipeline and data center leasing. The company this is the early impact of generative AI (GenAI) demand. As evidence of that, the company’s data center portfolio posted a 24% year-over-year (YOY) increase in annual recurring revenue (ARR) during the quarter.
This was also DigitalBridge Group’s second consecutive profitable quarter and the third straight quarter when it posted YOY revenue beats. Analysts forecast a 60% increase in earnings in the next 12 months. That supports their consensus Buy rating and $22.08 price target, which is 26.8% higher than its price on April 24, 2024.
About DigitalBridge Group
DigitalBridge is an infrastructure investment firm specializing in digital infrastructure assets. They provide services to institutional investors. They primarily invest in data centers, cell towers, fiber networks, small cells, and edge infrastructure. DigitalBridge Group, Inc was founded in 1991 and is headquartered in Boca Raton, Florida with additional offices in Los Angles, California, and New York New York.
- Current Price
- $11.74
- Consensus Rating
- Buy
- Ratings Breakdown
- 7 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $18.13 (54.4% Upside)
#2 - Uranium Energy (NYSEAMERICAN:UEC)
The world continues to shift away from fossil fuels. However, finding renewable energy sources that are truly clean is proving to be elusive. That’s turning more experts back to nuclear energy, which is why Uranium Energy Corp. (NYSEAMERICAN: UEC) is an under $50 stock that should get your attention.
The spot price of uranium is down from its all-time high in February 2024, but it’s still selling at over 15-year highs. And at around $90 per pound, uranium is trading at what’s considered the breakeven point for most Western mining companies.
Uranium Energy is well positioned to take advantage of the rise in uranium’s spot price. The company has restarted production at its Christensen Rance In-Situ Recover (ISR) operations in Wyoming. It also has plans to restart production at its South Texas ISR platform.
And despite a 139% rise in the UEC stock price in the last 12 months, analysts continue to be bullish with a consensus Buy rating and a price target of $8.80 which gives the stock about a 32% upside.
About Uranium Energy
Uranium Energy Corp., together with its subsidiaries, engages in exploration, pre-extraction, extraction, and processing uranium and titanium concentrates in the United States, Canada, and Paraguay. It owns interests in the Palangana mine, Goliad, Burke Hollow, Longhorn, and Salvo projects located in Texas; Anderson, Workman Creek, and Los Cuatros projects situated in Arizona; Dalton Pass and C de Baca project located in New Mexico; Roughrider, Shea Creek, Christie Lake, Horseshoe-Raven, Hidden Bay, Diabase, West Bear, JCU, and other project located in Canada; and Yuty, Oviedo, and Alto Paraná titanium projects in Paraguay.
Read More - Current Price
- $8.16
- Consensus Rating
- Buy
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $10.50 (28.8% Upside)
#3 - Verizon Communications (NYSE:VZ)
In a volatile market, the best offense can be to get defensive. That’s what you get with Verizon Communications Inc. (NYSE: VZ). The wireless phone model is about as predictable as it gets. But Verizon is a leader in the space. The company’s major investment in 5G technology is a reason for that.
The buildout of that network raised the company’s debt to uncomfortable levels, particularly at a time of rising interest rates. However, the bulk of that spending is done, and the company is now seeing some benefit to that investment on the top and bottom lines.
In addition to predictable revenue and earnings, investors get a reliable, high-yield dividend. Verizon's dividend yield, which has increased for 19 consecutive years, is 6.75%. That’s higher than the rate on the current two-year U.S. Treasury note. That, along with expectations of an 11.4% increase in the VZ stock price this year, is a reason for income-oriented investors to consider Verizon.
About Verizon Communications
Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Read More - Current Price
- $42.22
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $46.37 (9.8% Upside)
#4 - Delta Air Lines (NYSE:DAL)
On April 24, 2024, the March reading on durable goods orders beat expectations. One reason for the beat was non-defense aircraft, which surged by 30.6%. Is it a coincidence that earlier in April, Delta Air Lines Inc. (NYSE: DAL) kicked off earnings season with a strong beat on the top and bottom lines.
The company also raised its guidance for the second half of 2024, anticipating that strong demand will continue. Delta is crediting a revival of business travel as a key reason for the resurgence in demand. And as the revenue comes in, the airline is strengthening its balance sheet, which means it will likely continue to raise its dividend, which it had cut sharply in 2020 at the onset of the pandemic.
The Delta Air Lines Analyst Ratings on MarketBeat give DAL stock a consensus Buy rating with a price target of $58.29, which is a 21.9% increase from the stock price on April 24, 2024.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.
Read More - Current Price
- $63.64
- Consensus Rating
- Buy
- Ratings Breakdown
- 14 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.22 (11.9% Upside)
#5 - Bristol-Myers Squibb (NYSE:BMY)
Bristol-Myers Squibb (NYSE: BMY) presents investors with an interesting case. The stock has a consensus Hold rating but a price target of $61.18, which would give the stock a 25% upside. BMY stock is down 30.5% in the last twelve months and 4.5% in 2024.
The issue is two-fold. First, analysts are concerned about generic competition (i.e., the patent cliff) for several of the company’s flagship drugs, such as Reylimid, Eliquis, and Opdivo. Reylimid is currently seeing revenue loss with Eliquis and Opdivo due to patent expiration in 2026 and 2028, respectively.
Bristol-Myers has also pursued a growth-through-acquisition strategy to beef up its pipeline. The plan is to get new drugs into market before the others reach the patent cliff. However, the company has taken on debt to accomplish that.
What investors are left with is a stock that is trading for around 7x forward earnings, is expected to grow earnings by about 6.6% in the next 12 months and one that pays a dividend with a 4.92% yield.
About Bristol-Myers Squibb
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia.
Read More - Current Price
- $57.88
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 14 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $54.07 (6.6% Downside)
#6 - SLB (NYSE:SLB)
If you can find energy stocks in a list of quality stocks under $50, you should give it strong consideration. And that’s the case with SLB (NYSE: SLB), the company formerly known as Schlumberger. SLB is an oil services company specializing in providing the equipment needed for offshore drilling, which is less carbon-intensive than traditional drilling methods.
SLB stock is down 13% in the last six months despite rising oil production. But most of that production is coming from existing sites. If oil prices shoot to $100, which they may do as inflation holds sway over the world economy, then new drilling sites will have to be explored.
One example of that comes from Petrobras (NYSE: PBR), which recently awarded SLB three contracts to provide hardware and services for up to 35 subsea wells the company is developing.
The SLB Analyst Ratings on MarketBeat give the stock a consensus Buy rating with a $69.67 price target, which would be a 42% gain. And that goes along with a sustainable dividend that has a 2.12% yield.
About Schlumberger
Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products.
Read More - Current Price
- $43.53
- Consensus Rating
- Buy
- Ratings Breakdown
- 18 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $60.97 (40.1% Upside)
#7 - Dyne Therapeutics (NASDAQ:DYN)
The field of stocks under $50 is filled with many biotechnology companies. Taking a position in these companies while they’re still in the clinical trial stage can reap huge gains if they successfully bring a drug to market.
That’s the case with Dyne Therapeutics Inc. (NASDAQ: DYN). The company’s FORCE platform is targeting muscle diseases with the goal of stopping or potentially reversing the progression of diseases such as myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD), and facioscapulohumeral muscular dystrophy (FSHD).
The company’s lead candidates, DYNE-101 and DYNE-251, are in early-stage trials. That puts the company years away from revenue and earnings. However, analysts are bullish on DYN stock with a consensus Buy rating and a $37.43 price target.
Investors looking to take a long position must be patient as short interest is above 16%, which could lead to short-term volatility. But companies like these require a belief in the story. In this case, you won’t be alone.
About Dyne Therapeutics
Dyne Therapeutics, Inc, a clinical-stage muscle disease company, operates as a biotechnology company that focuses on advancing therapeutics for genetically driven muscle diseases in the United States. It is developing a portfolio of muscle disease therapeutics, including programs in myotonic dystrophy type 1; duchenne muscular dystrophy; and facioscapulohumeral dystrophy, as well as rare skeletal muscle, and cardiac and metabolic muscle diseases using its FORCE platform that delivers disease-modifying therapeutics.
Read More - Current Price
- $29.99
- Consensus Rating
- Buy
- Ratings Breakdown
- 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $51.40 (71.4% Upside)
As of April 2024, there are about 6,000 publicly traded companies on the New York Stock Exchange (NYSE) and the Nasdaq (NASDAQ). And the list of those that trade under $50 is much larger than the seven stocks on this list.
MarketBeat has several tools that make it easy to find stocks under $50. The most direct way is to go to the Market Data drop-down menu and find Low Priced Stocks. There, you'll find “Stocks Under $50." This provides a list of stocks that consistently receive “Buy" and “Strong Buy" ratings from Wall Street's top analysts.
You can also use MarketBeat's free stock screener tool and filter for stocks with a maximum price of $50. The screener also allows you to filter for other attributes, such as market cap or market sector. If dividends are important to you, you can also screen for that.
It's another way that MarketBeat can be a one-stop resource to help make you a more informed investor.
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