As we step into 2024, the quest for affordable yet promising stocks continues to be a top priority. In this article, we delve into a curated list of stocks that not only fit a modest budget but also hold the potential for significant returns. Whether you’re a seasoned investor or just starting out, these under-$50 gems could be the perfect addition to diversify your portfolio.
The 8 best stocks under $50: Enrich your portfolio with these investment picks in 2024
In the following sections, we will examine some of the best investment opportunities in the stock market for shares that are priced below $50.
1. DraftKings – A leader in sports betting in the US
DraftKings, a leader in digital sports entertainment and gaming, offers daily fantasy sports, sports betting, and online casino games. Established in 2012, it has grown rapidly, especially following the legalization of sports betting in the U.S. DraftKings combines technology and user engagement to innovate in the expanding market of online sports and gaming.
Buy DraftKings Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in DraftKings guide.
Why we picked it?
The sports betting industry is expanding, especially as more states and countries legalize it, creating new markets and customer bases. Companies in this sector, with DraftKings at the helm, are investing heavily in technology to enhance user experiences and odds accuracy, suggesting potential for innovation-driven growth.
Over the trailing twelve-month (TTM) period, DraftKings has generated $1.23 in gross profit on $3.3 billion in revenue. At the same time, earnings per share (EPS) grew by over +36%, showcasing that the sports betting giant is slowly but surely laying the foundation for a massively profitable operation. At the moment, however, that’s not the case, with DraftKings posting a $1 billion net income loss in the past year.
2. Intel Corporation – A US-based chip-making giant
Intel Corporation is a global leader in the technology sector, renowned for its innovative development and manufacturing of microprocessors and semiconductor chips. Founded in 1968, Intel’s products are integral to the functioning of computers and data centers worldwide. Intel remains at the forefront of technological innovation, driving progress in areas like artificial intelligence, 5G network transformation, and autonomous driving.
Buy Intel Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Intel guide.
Why we picked it?
Intel is focusing on the rapidly growing AI market, which is projected to exceed $1 trillion by 2030. With new AI GPUs and processors, Intel is positioned to compete in this lucrative market. In addition, Intel is investing heavily in chip manufacturing facilities in the US, with the most prominent being the $20 billion investment in the Ohio chip making plant.
Another important caveat to consider regarding Intel is the fact that the world’s leading manufacturing hub in Taiwan is under ever-increasing pressure due to China’s geopolitical goals, which means that a lot of industry currently located on the island will likely return stateside in the near to medium term as a part of a strategic shift. In the long run, Intel seems poised to benefit from this trend.
3. United States Steel – A US producer of steel
United States Steel Corporation, commonly known as U.S. Steel, is a major American integrated steel producer with major production operations in the United States and Central Europe. Founded in 1901 and headquartered in Pittsburgh, Pennsylvania, it is one of the leading steel manufacturers globally. U.S. Steel is known for its significant contributions to the expansion of the steel industry in the U.S. and plays a crucial role in the country’s industrial sector.
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Why we picked it?
U.S. Steel is making strategic investments in production facilities to leverage increased demand for steel. The company is well-positioned to benefit from the United States’ plans to revitalize infrastructure using American-made steel and the anticipated global demand recovery for steel.
In the past 12 months, the company generated a very respectable $895 million in net income from $18.1 billion in total revenue. Furthermore, the low P/E of just 13 indicated that the stock might be trading below its fair value right now (and that’s despite gaining over 50% in the past year).
4. Marathon Digital Holdings – A leading Bitcoin mining company
Marathon Digital Holdings is a leading cryptocurrency mining company, focusing on the blockchain ecosystem and the generation of digital assets. Established in 2010, it originally began as an IP licensing and management company but pivoted to cryptocurrency mining in 2017. Marathon operates vast mining operations, leveraging advanced technologies to efficiently mine Bitcoin.
Buy Marathon Digital Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Marathon Digital guide.
Why we picked it?
Marathon is targeting a significant growth in its hash rate, aiming to reach 50 exahashes in the next 18 to 24 months. This increase is expected to boost Bitcoin production capacity, potentially impacting future revenue and profitability positively, which makes MARA one of the best Bitcoin mining stocks in 2024.
Marathon currently holds a significant market share among public Bitcoin mining firms. This is seen as a justification for its premium valuation when compared to its peers in the industry. Last but not least, Marathon Digital offers investors an alternative way to gain exposure to Bitcoin. Given the inherent volatility of Bitcoin, investing in MARA can be seen as a high-beta trading instrument.
5. Palantir Technologies – A big data-focused firm
Palantir Technologies is a public American software company specializing in big data analytics. Founded in 2003, Palantir develops software that integrates, manages, and secures data from disparate sources. Their platforms, Palantir Gotham and Palantir Foundry, are widely used in government, finance, and health sectors.
Buy Palantir Technologies Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Palantir Technologies guide.
Why we picked it?
Palantir’s effective new marketing strategy and the strong traction of its Artificial Intelligence Program (AIP) are likely to drive customer growth and rapid revenue expansion. Additionally, the overall growth in the AI sector bodes well for Palantir’s future prospects.
The technical analysis data tracked by TradingView indicates that PLTR is currently a “Strong Buy”, which is underscored by growing revenue and net income, as well as a high research and development ratio of more than 18%.
6. Harmony Gold Mining Company – A leader in gold mining
Harmony Gold Mining Company Limited is a South African gold mining and exploration company, established in 1950. As one of the world’s leading gold mining companies, Harmony operates in South Africa and Papua New Guinea, focusing on gold extraction and related activities, including exploration, extraction, and processing.
Buy Harmony Gold Mining Company Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Harmony Gold Mining Company guide.
Why we picked it?
The company has demonstrated strong price performance and favorable valuation metrics compared to its competitors, with lower forward-looking P/E GAAP, EV/EBITDA, and EV/sales ratios. Gold’s long-term value and Harmony’s relatively low stock volatility might appeal to certain investors seeking diversification
Over the past 12 months, the company has reported a net income of $269 million and earnings per share of $0.44. In addition, the company has a very low price-to-earnings ratio, which could indicate that the market is slightly undervaluing the stock.
7. Pinterest – A unique social media platform
Pinterest, Inc. is a social media platform known for its visual discovery, collection, and storage tool. Founded in 2010, Pinterest allows users to create and manage theme-based image collections such as events, interests, hobbies, and more. Users can browse and save pins from others in a variety of categories, making it a popular tool for finding inspiration in areas like home decor, fashion, recipes, and DIY projects.
Buy Pinterest Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Pinterest guide.
Why we picked it?
Investing in Pinterest may be worthwhile due to several factors. Firstly, the company is expected to continue growing its user base, aiming to expand beyond 500 million monthly active users (MAUs). Secondly, while sales estimates are increasing, they appear conservative, suggesting room for potential growth beyond the 15% sales growth forecast for 2024. Finally, Pinterest is well-poised for consistent user growth, and any increase in Average Revenue Per User (ARPU) could drive strong sales growth.
One thing that stands out when looking at Pinterest is its unusually high investment in research and development, which stood at a whopping 36% in the past year. This indicated that the company is clearly looking ahead and investing in ways and strategies to expand its business in the long run.
8. ImmunoGen – A biotech company specializing in cancer treatment
Immunogen, Inc. is a biotechnology company specializing in the development of anticancer therapeutics. Founded in 1981 and headquartered in Waltham, Massachusetts, Immunogen focuses on antibody-drug conjugates (ADCs), a technology that uses antibodies to deliver potent cytotoxic agents directly to cancer cells. This approach aims to minimize the side effects commonly associated with traditional chemotherapy while maximizing the treatment’s efficacy against targeted cancer cells.
Buy ImmunoGen Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in ImmunoGen guide.
Why we picked it?
One of the key considerations for investors is the status of ImmunoGen’s drug Elahere, which is expected to move from Accelerated Approval to Full Approval in the first half of 2024. This transition, if successful, could be a significant catalyst for the company. Another important factor is the outcome of the ongoing Phase 2 PICCOLO study, which is evaluating Elahere in patients with FRa-high platinum-sensitive ovarian cancer. Positive results from this study, expected in mid-2024, could open up a new patient population for ImmunoGen to target.
However, it’s worth noting that both of these developments could face delays and other bottlenecks that would hinder ImmunoGen’s growth. Also, the healthcare stock sector is currently somewhat overvalued, with many companies boasting billion-dollar valuations that likely won’t be around in 5 to 10 years. Still, ImmunoGen is a sensible bet on the potential advancements made in the field of cancer treatment, which is a field that has the potential to revolutionize healthcare and society as a whole.
The bottom line: There are plenty of established companies trading in the sub-$50 range
While the price of a stock is not necessarily indicative of the company’s underlying performance, it does sometimes instill in investors a feeling of certain stocks being “cheap” or “expensive” based on the price alone. That’s not necessarily the case, especially when you consider that most brokers allow investors to buy a fraction of the stock, which means that the inherent price plays little to no role in the investment decision.
Still, we’ve hopefully demonstrated that there are quite a few stock investment options available in the sub-$50 range. If you want to go even lower, we suggest you take a look at the following articles:
For a more general overview of the best stock options, check our weekly updated list of the best stocks to buy.
*Technical analysis rating based on the last 1 month of market data collected by TradingView.
Source: https://coincodex.com/article/37567/best-stocks-under-50/