10 stocks under $50 to buy now

In this article, we’ll look at 10 stocks under $50 to buy. If you want to see more stocks under $50 to buy, head over to 5 stocks under $50 to buy now.

According to the Labor Department on Friday, the US economy gained 263,000 jobs and the unemployment rate remained at 3.7%. Additionally, the average hourly wage rose 5.1% year over year in November, a welcome increase for workers battling inflation.

In terms of inflation, October’s core personal consumption expenditure price index rose 5% year-over-year from September’s 5.2% year-on-year rise on the other. The measure, which is favored by the Federal Reserve, was better than some expectations and indicated that inflation could potentially peak.

Perhaps in part due to strong underlying inflation data in October, Federal Reserve Chairman Jerome Powell said in late November: “So it makes sense to moderate the pace of our rate hikes at As we approach the level of restriction that will be sufficient to bring inflation back The time to moderate the pace of rate hikes may come as early as the December meeting.

With slower interest rate hikes, a potential spike in inflation and a still strong labor market, the broader market has recently rallied with the S&P 500 index up nearly 14% from at its October lows.

Although the data has been more positive lately, many are wondering if inflation will stay high longer than the market expects or if interest rates will go higher than the market expects.

Indeed, former Treasury Secretary Lawrence Summers recently said that interest rates may need to rise more than the market deems.

If interest rates remain high for too long or rise too high, the economy may enter a recession and many stocks may not fare as well. Given the uncertainty, it might make sense for long-term investors to own a well-diversified portfolio of stocks across many different sectors.

New York Stock Exchange
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Methodology

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 stocks in the same action at the end of the third quarter.

10. Huntington Bancshares Incorporated (NASDAQ: HBAN)

Number of hedge fund holders: 23

Huntington Bancshares Incorporated (NASDAQ:HBAN) is a regional bank whose shares rose from under $7.25 to $15.46 on Dec. 3. Although shares of Huntington Bancshares Incorporated (NASDAQ:HBAN) may face downsides in a recession next year, the bank remains attractive over the long term given its normalized earnings capacity. Of the 920 hedge funds in our database, 23 were long on Huntington Bancshares Incorporated (NASDAQ:HBAN) at the end of Q3 2022.

Alongside Hewlett Packard Enterprise Company (NYSE:HPE), GlaxoSmithKline plc (NYSE:GSK) and CSX Corporation (NYSE:CSX), Huntington Bancshares Incorporated (NASDAQ:HBAN) is a sub-$50 stock that many hedge funds of our database hold at the end of the third quarter of 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 whose stock has more than tripled since 2014. Oakmark Global Fund outlines the long-term business potential of Keurig Dr Pepper Inc. (NASDAQ:KDP) in a fourth quarter investor 2020 letter,

Keurig Dr Pepper is one of North America’s leading beverage companies with a leadership position in single-serve coffee and flavored sodas. We believe that single-serve coffee pods will capture almost all of the incremental growth in 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, largest installed base of brewers, exclusive brand partnerships) allow it to collect a toll on most pods sold in North America. The company’s soda franchises remain highly profitable, and we don’t expect sugar-related health issues to have a significant impact on consumer trends. We believe Keurig’s brands should generate steady growth, consistent market share gains and significant excess cash.

Given the performance of Keurig Dr Pepper Inc. (NASDAQ:KDP) shares 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) maintains its market share.

8. Hormel Foods Corporation (NYSE:HRL)

Number of hedge fund holders: 29

Hormel Foods Corporation (NYSE: HRL) is a packaged food company whose stock has more than doubled in the past 10 years. Given this year’s macroeconomic headwinds, Hormel Foods Corporation’s (NYSE:HRL) results were weaker than expected in some respects. In the fourth quarter, the company reported EPS of $0.51 on sales of $3.3 billion versus consensus of $0.50 on revenue of $3.38 billion. For FY23, Hormel Foods Corporation (NYSE:HRL) sees EPS of $1.83 to $1.93 against consensus of $2. Nonetheless, shares of Hormel Foods Corporation (NYSE:HRL) are only down 2.4% year-to-date and the company still has plenty of potential. 29 hedge funds in our database held 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 very 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) also has an easier time making money. While the broader market has fallen this year in the United States, ICICI Bank Limited (NYSE:IBN) stock is up 17.2% year-to-date. 29 hedge funds, we track shares held in ICICI Bank Limited (NYSE:IBN) at the end of the third quarter, ranking the company No. 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 stock has risen over the long term. However, with the current macroeconomic headwinds, shares of KeyCorp Inc (NYSE:KEY) have fallen nearly 20% year-to-date. As a result, the bank is trading for a forward price-to-earnings ratio of 9.02 and has a dividend yield of 4.42%. While the bank may face downsides in a recession next year, KeyCorp (NYSE:KEY) has a fairly attractive valuation that could offer upsides if market sentiment normalizes. 33 hedge funds in our database held stocks at the end of the third quarter, ranking KeyCorp (NYSE:KEY) #6 on our list of 10 stocks under $50 to buy now.

As KeyCorp (NYSE:KEY), Hewlett Packard Enterprise Company (NYSE:HPE), GlaxoSmithKline plc (NYSE:GSK) and CSX Corporation (NYSE:CSX) are sub-$50 stocks than many hedge funds in our base. data held at the end of the third quarter.

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