You can start investing even on a shoestring budget with shares of established companies priced under $50. While big names like Meta Platforms may be out of reach for $500, there are plenty of other gems trading for $50 or less. Many of these low-priced stocks also come with attractive valuations, making them compelling buys in the current market.
Birkenstock: Walking Toward Success
German footwear brand Birkenstock Holding (NYSE:BIRK), renowned for its iconic sandals, recently made its foray into the public market. Since its IPO last fall, BIRK stock has surged by 25% to $45 per share, marking one of the standout debuts in recent years. Founded in 1774, the company is impressing investors with robust financial performance, exceeding Wall Street’s expectations.
Birkenstock reported a remarkable 22% increase in revenue year-over-year, fueled by higher prices and growing demand in the U.S. The company’s adjusted profit of 17 million euros ($18.46 million USD) outpaced analysts’ forecasts, setting a strong foundation for further growth. Analysts anticipate continued success for Birkenstock as it expands its sales globally, with a particular focus on the lucrative Chinese market.
Ford Motor Co.: Driving into New Territory
Ford Motor Co. (NYSE:F) has garnered favor among analysts following the resolution of last year’s labor strike by the United Auto Workers (UAW). Since January, F stock has climbed 11%, offering investors a bargain at under $14 per share. Ford’s stock is attractively valued at just 12 times future earnings estimates, with a robust quarterly dividend of 15 cents per share, yielding a generous 4.43%. Moreover, Ford’s pivot towards gas-electric hybrids, in response to market demands, has positioned the automaker for success.
Despite Ford’s decision to scale back electric vehicle production plans, the market has embraced the strategic shift. The company’s recent rally post-announcement reflects growing optimism among investors about Ford’s future trajectory.
American Airlines Group: Taking Flight Once Again
American Airlines Group (NASDAQ:AAL) stands out as another attractive option for investors seeking stocks priced under $50. With AAL shares trading at a discount, currently below $14, the largest airline in the world offers a compelling value proposition. American Airlines continues its recovery from the pandemic-induced downturn and looks undervalued, trading at just 11 times future earnings forecasts.
The uptick in global travel demand bodes well for American Airlines, with the airline poised to capitalize on an expected surge in passenger numbers. Strong earnings reports have buoyed investor confidence in AAL stock, hinting at a promising outlook for the company.
Disclaimer: The opinions expressed in this article are solely those of the author. Investing in stocks carries inherent risks, and individuals should conduct thorough research before making any investment decisions.
