You don’t have to break the bank to secure quality stocks. Numerous gems are available for less than $50, making investing more accessible for the masses. Companies are actively slicing their stocks to democratize investing, as seen in Chipotle Mexican Grill (NYSE:CMG), where a recent 50-to-1 stock split took the share price down to $60, a much friendlier figure than the previous $3,200.
While many stocks don’t require splits to offer affordable prices, several great companies boast stocks with reasonable price tags. These stocks often present attractive valuations and generous dividend yields, heightening their appeal to everyday investors. Let’s dive into the three exceptional stocks under $50 deserving attention in July 2024.
Technology Powerhouse: Hewlett Packard Enterprise (HPE)
Within the realm of information technology, Hewlett Packard Enterprise (NYSE:HPE) is enjoying a well-deserved moment in the spotlight. In the last month, HPE stock surged by 18% following the company’s strong financial performance. HP Enterprise, as it’s commonly known, reported an earnings per share (EPS) of 42 cents, surpassing analysts’ expectation of 39 cents. It also boasted revenue of $7.20 billion, exceeding the $6.80 billion forecast on Wall Street.
This outstanding showing marks the company’s best earnings report in two years and has ignited a wave of optimism among investors. Notably, the surge was attributed to the burgeoning demand for its artificial intelligence (AI) servers, a sweet sound to investors’ ears. Reported AI systems’ revenue at HP Enterprise more than doubled sequentially in the quarter, reaching $900 million.
With HPE stock up by 25% this year and trading modestly at $21 a share, investors seeking top stocks under $50 should give serious consideration to this technology juggernaut.
Financial Titan: Bank of America (BAC)
Bank of America (NYSE:BAC) is another stock on the rise. As the second-largest U.S. lender, its share price has soared by 37% over the last 12 months, including an impressive 18% gain this year. BAC stock’s growth can be attributed to a blend of factors, including strong earnings, a robust economy, and expectations of lower interest rates. Despite this remarkable journey, Bank of America stock is currently priced at $40 a share.
In the first quarter of this year, Bank of America reported stellar results, driven largely by increased interest income and a resurgence in investment banking activity. Notably, investment banking revenue rose by 35% to $1.57 billion, as deals returned to Wall Street following the bear market of 2022. Moreover, Bank of America’s trading business recorded its best first quarter in over a decade during a booming stock market.
With numerous tailwinds propelling its growth, now seems like an opportune moment to invest in BAC stock.
Auto Industry Icon: Ford Motor Co. (F)
For a truly budget-friendly option, look no further than Ford Motor Co. (NYSE:F). Currently trading at under $13 per share, the Detroit automaker’s stock has faced a 16% decline over the past year, attributed to issues like a costly strike by the United Auto Workers (UAW) union last fall, mixed financial results, and a strategic shift towards gas-electric hybrids as opposed to fully electric vehicles.
However, there are numerous reasons to consider investing in F stock. Trading at just 13 times future earnings estimates, Ford offers a substantial quarterly dividend of 15 cents per share, equating to a 4.69% yield. Earlier this year, Ford distributed a special dividend of 18 cents per share in addition to its regular dividend. Moreover, the company continues to produce several bestsellers, including the F-150 pick-up truck and Mustang muscle car.
As of the publication date, neither the author nor the responsible editor held any positions in the securities discussed in this article.
Author Joel Baglole has been a business journalist for two decades, with stints at renowned publications like The Wall Street Journal, The Washington Post, and Toronto Star, and contributions to financial platforms such as The Motley Fool and Investopedia.