You don’t have to shell out big bucks to buy quality stocks. There are a lot of great stocks available to buy for less than $50. In fact many companies are actively splitting their stocks to make them more affordable to retail investors. Chipotle Mexican Grill (NYSE:CMG), for example, just split its stock 50-to-1, taking the share price down to $60 from more than $3,200.
A lot of other stocks do not need to split for the share price to be affordable. There are plenty of great companies that have stocks trading at reasonable prices. A lot of these stocks also offer cheap valuations and big dividend yields, making them even more attractive to average investors. Here are the three best stocks under $50 to buy in July 2024.
Hewlett Packard Enterprise (HPE)
The stock of Hewlett Packard Enterprise (NYSE:HPE) is having a moment in the spotlight. In the past month, HPE stock has gained 18% after the information technology company posted strong financial results. HP Enterprise, as the company is known, reported EPS of 42 cents, which beat the consensus expectation among analysts of 39 cents. Revenue came in at $7.20 billion, topping the $6.80 billion forecast on Wall Street.
It was the company’s best earnings print in two years and has lit a spark under the share price. Best of all, management attributed the strong results to rising demand for its artificial intelligence (AI) servers, which seemed to be exactly what investors wanted to hear from HP Enterprise. Executives said that the AI systems revenue at HP Enterprise more than doubled sequentially in the quarter to $900 million.
HPE stock is now up 25% on the year but still trading for only $21 a share. Investors looking for the best stocks under $50 should consider this technology company.
Bank of America (BAC)
The stock of Bank of America (NYSE:BAC) is also on an upswing. The second largest lender in the U.S. has seen its share price rise 37% over the last 12 months, including an 18% gain so far this year. BAC stock has been growing due to a combination of factors that include strong earnings, a resilient economy, and expectations for lower interest rates. Despite its impressive run, Bank of America stock is changing hands at $40 a share.
For this year’s first quarter, Bank of America reported better-than-expected results due largely to higher interest income and a rebound in investment banking activity. Specifically, investment banking revenue jumped 35% to $1.57 billion as deals continue to return to Wall Street after the 2022 bear market. Also, Bank of America said that its trading business turned in its best first quarter in more than a decade as the stock market boomed.
With so many things working in its favor, now would be a great time to buy BAC stock.
Ford Motor Co. (F)
For a really affordable stock, consider the Ford Motor Co. (NYSE:F). The Detroit automaker’s shares are currently trading for less than $13 a share. The stock is down 16% over the last 12 months due to issues ranging from last fall’s costly strike by the United Auto Workers (UAW) union, mixed financial results, and a change of strategy that has the company moving away from fully electric vehicles and embracing gas-electric hybrids.
Yet there are many reasons to like F stock. The shares currently trade at only 13 times future earnings estimates. Ford also pays a hefty quarterly dividend of 15 cents per share, giving it a yield of 4.69%. Earlier this year, Ford paid a special dividend of 18 cents per share in addition to its regular dividend. The company also continues to make several bestselling nameplates such as the F-150 pick-up truck and Mustang muscle car.
On the date of publication, Joel Baglole 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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
