You don’t have to break the bank to find quality stocks worth investing in. Many gems are nestled below the $50 mark, accessible even to retail investors. While some companies opt for stock splits to adjust prices, the stock market still offers affordable opportunities. A prime example is Chipotle Mexican Grill, following its recent 50-to-1 stock split, bringing its price down to a mere $60 from over $3,200.
Hewlett Packard Enterprise (HPE)
The spotlight is shining bright on Hewlett Packard Enterprise (HPE) these days. With a robust 18% increase in the past month, the information technology giant impressed the market with stellar financial results. Surpassing analyst predictions, HPE reported earnings per share (EPS) of 42 cents, outstripping the consensus of 39 cents. Revenue also exceeded expectations at $7.20 billion, compared to the forecast of $6.80 billion.
The exceptional performance, the best in two years, propelled a surge in the stock price. The increasing demand for its artificial intelligence (AI) servers, with AI revenue more than doubling sequentially to $900 million, delighted investors. Among the best stocks under $50, HPE, with a trading value of only $21 per share, holds promise for savvy investors seeking technology opportunities.
Bank of America (BAC)
Bank of America (BAC), the second largest U.S. lender, is riding a wave of success, with a remarkable 37% growth in share price over the last year, including an impressive 18% rise this year. Driven by solid earnings, a resilient economy, and expectations of lower interest rates, BAC’s strategic positioning has paid off. Despite this incredible run, the stock remains a steal at $40 per share.
The bank’s resilient performance in the first quarter, fueled by increased interest income and a booming investment banking sector, signals a period of prosperity. Investment banking revenue surged by 35% to $1.57 billion, reflecting a resurgence in Wall Street dealings following the 2022 bear market. Furthermore, the trading business reported its strongest first quarter in over a decade, resonating with the flourishing stock market. With multiple factors working in its favor, BAC presents a lucrative opportunity for investors.
Ford Motor Co. (F)
For budget-conscious investors, Ford Motor Co. (F) stands out as an attractive option. Priced at less than $13 per share, Ford’s stock has experienced a 16% decline over the past year. Various challenges, including a costly strike by the United Auto Workers (UAW), mixed financial results, and a strategic shift towards gas-electric hybrids rather than fully electric vehicles, have impacted its performance.
Despite these hurdles, a silver lining emerges. With shares trading at a modest 13 times future earnings estimates, Ford boasts a substantial quarterly dividend of 15 cents per share, yielding a generous 4.69%. Earlier this year, Ford distributed a special dividend of 18 cents per share in addition to its regular payout. The company’s enduring success with popular models like the F-150 pick-up truck and Mustang muscle car cements its position as a promising pick.
On the date of publication, Joel Baglole had no direct or indirect positions in the securities discussed. The views expressed are solely those of the author, subject to InvestorPlace.com’s Publishing Guidelines.
Conclusion
July 2024 unveils a treasure trove of affordable stocks ripe for the picking. With Hewlett Packard Enterprise, Bank of America, and Ford Motor Co. each offering unique value propositions, investors have a buffet of opportunities to bolster their portfolios. In a market teeming with potential, these stocks under $50 gleam with promise, waiting to be unearthed by discerning investors.
