The essence of stock investing is bargain hunting. Every single investor hopes to buy low and sell high. Fortunately, there are hundreds and hundreds of undervalued stocks under $50 to buy. The stocks discussed in this article are each priced between $40 and $50.

That’s an arbitrary choice but it’s also a share price level at which a lot of stability is offered while also exposing investors to substantial upside.

Recent decisions from Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) to split their stocks, as each grew above $1,000 per share, show that investors appreciate affordability. $50 shares are abundant and there are a lot of ways to assert a given share is underappreciated and underpriced. Here are three shares that exhibit those factors.

Altria (MO)

Altria (NYSE:MO) stock is fully priced at the moment. That would seem to contradict any assertion that it’s undervalued or underpriced. 

The most likely base case scenario is that Altria’s shares remain flat over the next 12 to 18 months. Thus, the only upside at the moment is the off chance that it rises to $56 which is the high analyst price. However, it’s simply more likely to trade in the $45 to $46 range for the foreseeable future.

Of course, Altria also includes a dependable dividend yielding 8.5%. Altria hasn’t reduced its dividend since 1970. The company took steps to ensure that funding for that dividend will continue with a sale of unrelated shares in March. As a result, investors are essentially ensured an 8.5% return. Even if share prices go down, Altria is going to continue paying its dividend and those investors can simply ride out the low period.

Altria’s most recent earnings report was stronger than expected, suggesting that its pivot away from cigarette revenues is working. There’s value, income stability, and upside based on Altria’s pivot strategy that make it a strong investment at $46.

Fortis (FTS)

Fortis (NYSE:FTS) is a lot like any of dozens of other utilities stocks available to investors. It offers stable operations from its semi-monopoly status and pays income in the form of dividends.

However, Fortis and other utilities stocks like it have seen demand fall as yields on bonds continue to be high. That has made the dividend income from utilities stocks, which is usually attractive to investors in the range of 1% to 3%, much less so.

Take a look at the financial statements of Fortis and it’s essentially unremarkable. However, it currently offers a dividend yielding 4.4%. I believe that will entice investors toward Fortis especially as rate cuts approach. Remember, lower rates will decrease bond coupons making them relatively less attractive. Thus, early investors who get in now can buy Fortis shares for just under $40 a share with a dividend yielding 4.4%. 

The analysts covering the utilities company expect those shares will trade between $61 and $63. 

Dynatrace (DT)

Dynatrace (NYSE:DT) is a multi-cloud security platform serving customers globally. The company has been growing at annual rates of between 25 to 30% over the past 5 years. Yet, analysts covering the equity continue to assign target prices that undervalue the stock.

While annual results from Dynatrace have been impressive, the company also continues to impress on a quarterly basis. The company’s fiscal year ends on March 31. It was there that the company exceeded all guidance metrics at the high end. 

Annual recurring revenues grew by more than 20% during the period. Meanwhile, the company also announced a share repurchase plan valued at $500 million. That should help to increase earnings for shareholders as the overall pool of shares shrinks.

Dynatrace continues to benefit from increasing demand from enterprise firms that often utilize multiple cloud systems. The company’s products help to reduce the risks inherent in doing so. As AI continues to take hold, it’s likely that demand for Dynatrace products will only continue to rise.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.