You don’t need deep pockets to snag promising stocks. The market teems with gems priced under $50, offering ample opportunities for investors seeking quality without breaking the bank. Companies are stirring up excitement by slicing their stock prices, making them more wallet-friendly to the masses. Take for instance the recent 50-to-1 stock split by Chipotle Mexican Grill (NYSE: CMG), which brought its share price down from over $3,200 to a mere $60.
But not all attractive stocks require a split for affordability. Many firms boast stocks trading at reasonable prices, adorned with appealing valuations and handsome dividend yields. Here are three stellar picks priced under $50 to consider in July 2024.
Why Hewlett Packard Enterprise (HPE) Sparkles
Gliding into the limelight is Hewlett Packard Enterprise (NYSE: HPE). With a recent 18% surge in its stock price following a stellar financial performance, this IT powerhouse is on cloud nine. HP Enterprise, as it is fondly known, notched an EPS of 42 cents, surpassing the 39 cents consensus mark among analysts. Its revenue of $7.20 billion breezed past Wall Street’s $6.80 billion estimate.
The latest earnings report, the company’s strongest in two years, has set HPE stock on fire. What’s fueling this fervor? Well, rising interest in its artificial intelligence (AI) servers, a segment that saw revenues at HP Enterprise more than double sequentially in the quarter, soaring to $900 million. With a 25% uptick in the stock year-to-date and a modest $21 share price, tech-savvy investors eyeing bargains under $50 need to look no further.
Bank of America (BAC) Riding the Financial Waves
Amidst the financial frenzy stands Bank of America (NYSE: BAC), the nation’s second-largest lender, witnessing a commendable 37% climb in its share price over the past year, including an 18% hike in 2024. The ascent of BAC stock can be attributed to a blend of robust earnings, a resilient economy, and expectations of easing interest rates. Despite this impressive run, shares of Bank of America are a steal at $40 each.
The bank’s stellar first-quarter results, propelled by surges in interest income and a rebound in investment banking activities, paint a prosperous picture. Investment banking revenue jumped by an impressive 35% to $1.57 billion, as deal-making regained vigor on Wall Street post the 2022 bearish spell. Moreover, Bank of America’s trading segment celebrated its most dazzling first quarter in over a decade, fueled by a bountiful stock market. With the financial elements aligning favorably, now could be an ideal juncture to scoop up BAC stock.
Ford Motor Co. (F) – A Stocky Underdog
For a cost-effective pick, cast your gaze upon Ford Motor Co. (NYSE: F). Trading at a humble sub-$13 per share, this Detroit automaker has weathered a 16% decline over the past year riddled with challenges – from a costly strike by the United Auto Workers (UAW) last fall to a strategic pivot away from all-electric vehicles towards gas-electric hybrids.
Yet, there’s plenty to fancy about F stock. Shares are currently priced at a mere 13 times future earnings estimations. Ford dishes out a generous quarterly dividend of 15 cents per share, yielding a hefty 4.69%. Earlier this year, investors were pleasantly surprised by a bonus 18-cent dividend atop the regular payout. Despite the rough road, Ford shines with its iconic F-150 pick-up trucks and Mustang muscle cars. For a value-driven deal, F stock is an intriguing contender for savvy investors.