15 Stocks under $50 to Buy and Hold Forever
In this article, we will take a look at 15 stocks under $50 to buy and hold forever. To skip our analysis of the recent market activity, you can go directly to see the 5 Stocks under $50 to Buy and Hold Forever.
Analysts and experts often advise against choosing stocks solely based on their price tags. They recommend investors to evaluate stock prices based on their underlying business fundamentals and valuation metrics. But it's also a fact that budget limitations force beginner investors to filter out stocks based on their price tags. The good thing is that one can find strong companies trading for lower price tags with long-term growth potential. But how to find such companies? Insider Monkey's database of 910 hedge funds shows there are many companies trading under $50 in which hedge funds are piling into. In this article we will look at some under-$50 stocks popular among hedge funds.
While the likes of Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), NVIDIA Corporation (NASDAQ:NVDA), and Microsoft Corporation (NASDAQ:MSFT) offer an exciting way of gaining exposure to burgeoning technology stocks, their premium valuation is always a big distraction. With the stocks trading for hundreds of dollars, they are sometimes beyond the reach of most beginner investors.
Photo by Ruben Sukatendel on Unsplash
Our Methodology
Given the recent events of the past year, exploring stocks under $50 seems timely. With equity market valuations possibly stretched, these stocks present an appealing risk-reward opportunity to access diverse sectors of the economy. Using stock screeners, we identified stocks under $50, focusing on those with high market capitalization, favorable recommendations, and potential upside based on average price targets. This refined list was then cross-referenced with our hedge fund ownership database. The final step involved ranking these stocks by their popularity among 910 hedge funds tracked by Insider Monkey, resulting in a curated list of 15 stocks under $50, ranked by the number of hedge funds owning each stock.
Stocks under $50 to Buy and Hold Forever
15. Enterprise Products Partners L.P. (NYSE:EPD)
Share Price as of November 27: $26.74
Market Capitalization: $57.99 Billion
Number of Hedge Fund Holders: 25
Enterprise Products Partners L.P. (NYSE:EPD) is an energy stock trading under $50 that offers exposure to midstream energy services. The company provides natural gas processing and related NGL marketing services and operates natural gas processing facilities and crude oil pipelines in the United States.
14. The Williams Companies, Inc. (NYSE:WMB)
Share Price as of November 27: $36.32
Market Capitalization: $44.18 Billion
Number of Hedge Fund Holders: 27
Headquartered in Tulsa, Oklahoma, The Williams Companies, Inc. (NYSE:WMB) is one of the top stocks under $50 for gaining exposure in the energy sector. The company operates as an energy infrastructure company whose core business revolves around natural gas processing and transportation. The Williams Companies, Inc. (NYSE:WMB) also boasts additional petroleum and electricity generation assets.
13. UBS Group AG (NYSE:UBS)
Share Price as of November 27: $26.33
Market Capitalization: $84.21 Billion
Number of Hedge Fund Holders: 33
UBS Group AG (NYSE:UBS) is one of the largest financial services providers trading under $50. The company offers worldwide financial advice and solutions to private, institutional, and corporate clients. UBS Group AG (NYSE:UBS)’s wealth management segment provides investment advice and lending solutions. It also includes estate and wealth planning, corporate, and banking services.
12. BP p.l.c. (NYSE:BP)
Share Price as of November 27: $35.82
Market Capitalization: $ 100.06 Billion
Number of Hedge Fund Holders: 35
BP p.l.c. (NYSE:BP) is an ideal under-$50 stock for gaining exposure in the energy sector as one of the world's largest oil and gas companies. The company engages in the production of natural gas and crude oil. BP p.l.c. (NYSE:BP) also participates in the power and storage of digital transformation and low carbon-related products
11. Altria Group, Inc. (NYSE:MO)
Share Price as of November 27: $41.47
Market Capitalization: $72.85 Billion
Number of Hedge Fund Holders: 40
Altria Group, Inc. (NYSE:MO) is a consumer defensive trading under $50 specializing in manufacturing and selling smokeable and oral tobacco products. Altria Group, Inc. (NYSE:MO) provides cigarettes under the Marlboro brand, cigars, and pipe tobacco.
While Altria Group, Inc. (NYSE:MO) is down about 8% this year, analysts rate it as a Buy with a $44.90 price target, implying an 8.27% upside potential.
10. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Share Price as of November 27: $32.62
Market Capitalization: $45.32 Billion
Number of Hedge Fund Holders: 40
Keurig Dr Pepper Inc. (NASDAQ:KDP) is another consumer defensive play trading under $50. It operates as a beverage company with its coffee systems segment manufacturing and distributing various finished products related to coffee systems, cup piers, and brewers.
Keurig Dr Pepper Inc. (NASDAQ:KDP) has been under pressure, as evidenced by its 8.57% slide year to date. Nevertheless, Wall Street rates Keurig Dr Pepper Inc. (NASDAQ:KDP) as a Buy with a share price target of $35.29, implying 8.19% upside potential.
9. AT&T Inc. (NYSE:T)
Share Price as of November 27: $16.21
Market Capitalization: $115.62 Billion
Number of Hedge Fund Holders: 52
AT&T Inc. (NYSE:T) offers wireless voice and data communication services. It also sells handsets, wireless data cards, wireless computing, and hands-free devices. AT&T Inc. (NYSE:T) also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, security, and cloud solutions.
8. Verizon Communications Inc. (NYSE:VZ)
Share Price as of November 27: $37.41
Market Capitalization: $ 157.02 Billion
Number of Hedge Fund Holders: 61
Verizon Communications Inc. (NYSE:VZ) is another communication service stock trading for less than $50 that specializes in providing communications technology information and entertainment products. Verizon Communications Inc. (NYSE:VZ)’s consumer segment offers wireless services across wireless networks, data video conferencing and a corporate network.
As one of the largest careers in the US, Verizon Communications Inc. (NYSE:VZ) remains a top stock pick of hedge funds and offers a 7.12% dividend yield.
7. CSX Corporation (NASDAQ:CSX)
Share Price as of November 27: $32.64
Market Capitalization: $65.31 Billion
Number of Hedge Fund Holders: 62
CSX Corporation (NASDAQ:CSX) is a stock under $50 that offers exposure in the industrial sector. The company transports freight by rail, using containers and trailers. CSX Corporation (NASDAQ:CSX) transports chemicals, agricultural and food products, minerals, automobiles, forests, fertilizers, and metals.
With the opening of the global economy following the COVID-19 lockdown, CSX Corporation (NASDAQ:CSX) has recorded booming business. The stock is currently up by 6% for the year and comes with a 1.35% dividend yield.
6. Comcast Corporation (NASDAQ:CMCSA)
Share Price as of November 27: $42.58
Market Capitalization: $170.9 Billion
Number of Hedge Fund Holders: 68
Comcast Corporation (NASDAQ:CMCSA) is one of the most affordable stocks in the communication service sector. Comcast, a media and technology company, offers residential broadband and wireless connectivity services, business video services, and advertising sales. Comcast Corporation (NASDAQ:CMCSA) also provides broadband voice and wireless services.
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Disclosure: None. 15 Stocks under $50 to Buy and Hold Forever is originally published on Insider Monkey.