In this article, we will look at 10 stocks under $50 to buy. If you want to see more stocks under $50 to buy, go straight 5 Stocks Under $50 to Buy Today.
According to the Labor Department on Friday, the US economy gained 263,000 jobs, and the unemployment rate remained at 3.7%. In addition, average hourly wages rose 5.1% year-over-year in November, a welcome increase for workers who must contend with inflation.
In terms of inflation, the core personal consumption expenditures in October’s price index increased 5% annually compared to September’s increase of 5.2% annually. The metric, which is favored by the Federal Reserve, was better than some expectations and indicated that inflation is likely to rise.
Perhaps in part because of good October core inflation data, Federal Reserve Chairman Jerome Powell said in late November, “Therefore, it makes sense to moderate the pace of our rate hikes as we approach the level to prevent enough to drive inflation. The time to moderate the pace of rate hikes may come as soon as the December meeting.
With interest rate increases slowly, inflation potentially rising, and a still-strong job market, the broader market has rallied recently with the S&P 500 index up nearly 14% from the October lows.
While the data is more positive of late, many are wondering if inflation will remain high for a longer period than what the market expects or if interest rates will be higher than what the market is pricing in.
In fact, former Treasury Secretary Lawrence Summers recently said that the perceived interest rates may need to go higher than the market is judging.
If interest rates remain high for a long time or they are too high, there is a chance that the economy may enter a recession and many stocks will do poorly. Because of the uncertainty, it may be a good idea for long-term investors to own a well-diversified portfolio of stocks in many different sectors.
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For our list of 10 Stocks Under $50 to Buy Now, we selected 10 companies with earnings growth potential and ranked them based on the number of hedge funds in our database that held shares of the same stock at the end of third quarter.
10 Stocks Under $50 to Buy Today
10. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Hedge Fund Holders: 23
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a regional bank whose shares rallied from a low of $7.25 to $15.46 on December 3. Although shares of Huntington Bancshares Incorporated (NASDAQ:HBAN) may have downside if there is a recession next year, the bank remains attractive long term due to its normal earning power. Of the 920 hedge funds in our database, 23 were long Huntington Bancshares Incorporated (NASDAQ:HBAN) at the end of Q3 2022.
Along with Hewlett Packard Enterprise Company (NYSE:HPE), GlaxoSmithKline plc (NYSE:GSK), and CSX Corporation (NYSE:CSX), Huntington Bancshares Incorporated (NASDAQ:HBAN) is a stock under $50 among many hedge funds in our database owned by the end of Q3 2022.
9. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 23
Keurig Dr Pepper Inc. (NASDAQ:KDP) is a consumer beverage company that has seen shares more than triple since 2014. Oakmark Global Fund describes Keurig Dr Pepper Inc. (NASDAQ:KDP) business potential in a Q4 2020 investor letter,
Keurig Dr Pepper is one of the leading beverage companies in North America and commands dominant positions in single-serve coffee and flavored sodas. We believe that single-serve coffee pods will capture almost all of the incremental growth in at-home coffee consumption. Many consumers find that K-Cups offer better convenience, quality, variety and value, compared to drip brewing. Keurig’s competitive advantages (low-cost production, the largest installed base of brewers, exclusive brand partnerships) allow it to collect a fee for the most pods sold. in North America. The company’s soda franchises remain profitable, and we don’t expect health-related concerns about sugar to affect consumption trends. We believe the Keurig brands should deliver consistent growth, consistent market share growth and significant cash flow.
Due to the stock performance of Keurig Dr Pepper Inc. (NASDAQ:KDP) since 2021, the description of Oakmark Global Fund is accurate so far. There could be more growth in the future if Keurig Dr Pepper Inc. (NASDAQ:KDP) will maintain its market share.
8. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 29
Hormel Foods Corporation (NYSE:HRL) is a packaged foods company whose shares have doubled from 10 years ago. Due to this year’s macroeconomic headwinds, Hormel Foods Corporation (NYSE:HRL) results were weaker than expected in some ways. In Q4, the company reported EPS of $0.51 on sales of $3.3 billion compared to the consensus of $0.50 on revenue of $3.38 billion. For FY23, Hormel Foods Corporation (NYSE:HRL) saw EPS of $1.83 to $1.93 compared to the consensus of $2. However, shares of Hormel Foods Corporation (NYSE:HRL) are down just 2.4% year to date and the company has a lot of potential. 29 hedge funds in our database own shares of Hormel Foods Corporation (NYSE:HRL).
7. ICICI Bank Limited (NYSE:IBN)
Number of Hedge Fund Holders: 29
ICICI Bank Limited (NYSE:IBN) is one of India’s leading banks whose shares have performed exceptionally well since 2012. Although shares fell significantly during the pandemic, the Indian economy has recovered since then and the ICICI Bank Limited (NYSE: IBN ) stock is near an all-time high. With higher interest rates, ICICI Bank Limited (NYSE:IBN) is also having an easier time making money. While the broader market has declined this year in the United States, ICICI Bank Limited (NYSE: IBN ) stock is up 17.2% year to date. 29 hedge funds we tracked owned shares of ICICI Bank Limited (NYSE:IBN) at the end of the third quarter, ranking the company #7 on our list of 10 Stocks Under $50 to Buy Now.
6. KeyCorp (NYSE:KEY)
Number of Hedge Fund Holders: 33
KeyCorp (NYSE:KEY) is a regional bank whose shares have risen over the long term. With the current macroeconomic headwind, however, shares of KeyCorp (NYSE: KEY ) have fallen nearly 20% year to date. As a result, the bank trades for a forward P/E ratio of 9.02 and has a dividend yield of 4.42%. Although the bank may have downside if there is a recession next year, KeyCorp (NYSE: KEY ) has a relatively attractive valuation that could offer upside if market sentiment normalizes. 33 hedge funds in our database owned shares at the end of the third quarter, ranking KeyCorp (NYSE:KEY) #6 on our list of 10 Stocks Under $50 to Buy Now.
Like KeyCorp (NYSE:KEY), Hewlett Packard Enterprise Company (NYSE:HPE), GlaxoSmithKline plc (NYSE:GSK), and CSX Corporation (NYSE:CSX) stocks under $50 are many hedge funds in our database that are his at the end of the third quarter.
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Disclosure: None. 10 Stocks Under $50 to Buy Today originally published on Insider Monkey.
