In this article, we discuss the 10 Best Inexpensive Stocks to Buy Right Now.
As the markets are recovering from the distressing effects of the pandemic, investors seek refuge in inexpensive stocks to save themselves from big losses. Another reason for these investments is the rise of small investors in the market, fueled by the pandemic, as more and more people tried to turn profits during the lockdown. However, inexpensive stocks require patience from shareholders, and it could be months before they start generating profits.
As platforms like Robinhood gain popularity, average Americans are taking interest in investing in inexpensive stocks. According to a report published by Wall Street Journal, there were over 1.9 trillion transactions in OTC markets in February 2021, up 2000% from 2020.
Our Methodology:
Let’s analyze our list of the best inexpensive stocks to buy right now. The stocks mentioned below are trading under $50 per share as of November 12. We took into account basic business fundamentals, hedge fund sentiment, and companies’ future growth potential while choosing these stocks.
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10 Best Inexpensive Stocks to Buy Right Now
10. Ares Capital Corporation (NASDAQ:ARCC)
Number of Hedge Fund Holders: 12
Share Price as of November 12: $20.94
Ares Capital Corporation (NASDAQ:ARCC), an American Business Development company, announced its Q3 results on October 26 and posted an EPS of $0.47, beating the estimates by $0.02. The company’s total investment income stood at $442 million, up 25.6% from the prior-year quarter.
At the end of Q2, 12 hedge funds tracked by Insider Monkey reported owning stakes in Ares Capital Corporation (NASDAQ:ARCC), compared with 15 in the previous quarter. The total value of these stakes is over $86.6 million, up from $84 million in Q1.
Recently, Citigroup lifted its price target on Ares Capital Corporation (NASDAQ:ARCC) to $23, with a Buy rating on the shares, highlighting the company’s strong Q3 results. On October 26, Ares Capital Corporation (NASDAQ:ARCC) announced a quarterly dividend of $0.41 per share, with a dividend yield of 7.7%.
9. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
Number of Hedge Fund Holders: 21
Share Price as of November 12: $22.55
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) presented a positive hedge fund sentiment in Q2, as 21 hedge funds tracked in Insider Monkey’s database were bullish on the company, compared with 18 in the previous quarter. The total value of these stakes is $242.5 million, up significantly from $99.6 million in Q1.
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) specializes in the manufacturing of firearms, ammunition, and restraints. In fiscal Q1, the company posted an EPS of $1.57, beating the estimates by $0.31. This September, Lake Street reiterated a $43 price target on the stock, with a Buy rating on the shares. The firm’s analyst appreciated the company’s efforts to increase its flexible manufacturing capacity.
Since the beginning of the year, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) delivered a 24.04% return to shareholders, while the stock gained 40.1% in the past year.
8. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 25
Share Price as of November 12: $20.29
American Airlines Group Inc. (NASDAQ:AAL) remains one of the best inexpensive stocks to buy right now as recently, the U.S. has lifted pandemic-related travel restrictions for international visitors.
In Q3, American Airlines Group Inc. (NASDAQ:AAL) posted an EPS of -$0.99, beating the estimates by $0.04. The company’s revenue for the quarter stood at $8.9 billion, up 183% from the prior-year quarter.
As of Q2, 25 hedge funds tracked by Insider Monkey reported owning stakes in American Airlines Group Inc. (NASDAQ:AAL), down from 32 in the previous quarter. The total value of these stakes is over $620.2 million, compared with $561.7 million in Q1. As of Q3, Renaissance Technologies is the largest shareholder of American Airlines Group Inc. (NASDAQ:AAL), with over 5 million shares.
7. KB Home (NYSE:KBH)
Number of Hedge Fund Holders: 27
Share Price as of November 12: $42.65
Recently, KB Home (NYSE:KBH), an American homebuilding company, announced its expansion into Idaho, where it will maintain over 1,100 homesites across three planned new-home communities. The company expects its first home deliveries by the end of 2022.
Fisher Asset Management is the leading shareholder of KB Home (NYSE:KBH) in Q3, owning over 2.4 million shares. Of the 873 elite funds, 27 hedge funds tracked by Insider Monkey had stakes in KB Home (NYSE:KBH) in Q2, up from 24 in the previous quarter. The total value of these stakes is over $287.6 million.
This September, RBC Capital lifted its price target on KB Home (NYSE:KBH) to $50, with a Sector Perform rating on the shares. On October 7, the company’s board announced a quarterly dividend of $0.15 per share, with a dividend yield of 1.53%.
6. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 30
Share Price as of November 12: $27.53
Levi Strauss & Co. (NYSE:LEVI) is an American clothing company, famous for its denim jeans. The company pays an annual dividend of $0.32 per share, yielding 1.16%.
Levi Strauss & Co. (NYSE:LEVI) announced its Q3 results on October 6 and posted an EPS of $0.48, beating the estimates by $0.11. The company’s revenue also presented a 41.5% year-over-year growth at $1.5 billion. This August, Wells Fargo initiated its coverage on Levi Strauss & Co. (NYSE:LEVI) with an Overweight rating and a $31 price target, highlighting the company’s global position in the denim market.
At the end of Q2, 30 hedge funds tracked by Insider Monkey reported owning stakes in Levi Strauss & Co. (NYSE:LEVI), valued at $414.2 million. In the previous quarter, 19 hedge funds had stakes in the company, highlighting a positive hedge fund sentiment in Q2.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 34
Share Price as of November 12: $43.14
Plug Power Inc. (NASDAQ:PLUG) is an American company that develops hydrogen fuel cells systems that are used to replace conventional batteries. Recently, Morgan Stanley raised its price target on Plug Power Inc. (NASDAQ:PLUG) to $65, with an Overweight rating on the shares. The firm’s analyst sees growth in the company’s hydrogen production and electrolyzer business.
At the end of Q2, 34 hedge funds tracked by Insider Monkey reported owning stakes in Plug Power Inc. (NASDAQ:PLUG), up significantly from 24 in the previous quarter. These stakes are valued at $878.4 million. With over 7.52 million shares, D E Shaw is one of the most prominent shareholders of Plug Power Inc. (NASDAQ:PLUG) in Q3.
Plug Power Inc. (NASDAQ:PLUG) announced its Q3 results on November 9 and saw a 34.5% year-over-year growth in its revenue at $143.9 million.
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 55
Share Price as of November 12: $19.5
In October, Credit Suisse upgraded Ford Motor Company (NYSE:F) to Outperform while lifting the stock’s price target to $20. The firm’s analyst signals an opportunity ahead as the company is well-positioned to benefit from improving fundamentals.
Since the beginning of the year, Ford Motor Company (NYSE:F) delivered a 128.8% return to shareholders, while the stock gained 121.5% in the past year. This October, Ford Motor Company (NYSE:F) reported its best SUV sales in the past 21 years, presenting a 17.4% year-over-year growth at over 70,000 units. In Q3, the company posted an EPS of $0.51, beating the estimates by $0.24.
Of the 873 hedge funds tracked by Insider Monkey, 55 hedge funds reported owning stakes in Ford Motor Company (NYSE:F) in Q2, up from 49 in the previous quarter. The total value of these stakes is over $2.1 billion.
3. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 67
Share Price as of November 12: $49.73
Pfizer Inc. (NYSE:PFE) made it to our list of the best inexpensive stocks to buy right now as the stock gained 11% on November 3, after the company announced that its Covid-19 antiviral treatment candidate will reduce the risk of hospitalization and death by 89%.
In Q3, Kahn Brothers is the leading shareholder of Pfizer Inc. (NYSE:PFE), owning shares worth over $42 billion. Overall, 67 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q2, up from 65 in the previous quarter. The total value of these stakes is over $2.3 billion.
Pfizer Inc. (NYSE:PFE) has a track record of 12 years of consistent dividend growth and pays an annual dividend of $1.56 per share, yielding 3.14%. In Q3, the company reported $14.5 billion in vaccine revenue, up significantly from $1.7 billion, reported during the same period last year. Recently, Cowen raised its price target on Pfizer Inc. (NYSE:PFE) to $56, with an Outperform rating on the shares.
ClearBridge Investments published its Q1 2021 investor letter and mentioned Pfizer Inc. (NYSE:PFE) in it. Here is what the firm has to say:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 76
Share Price as of November 12: $41.23
Recently, Argus raised its price target on Freeport-McMoRan Inc. (NYSE:FCX) to $45, with a Buy rating on the shares. The firm’s analyst highlighted the company’s Q3 earnings beat and expects it to benefit from the rising metal prices.
In Q3, Freeport-McMoRan Inc. (NYSE:FCX), a mining company, posted an EPS of $0.89, beating the estimates by $0.09. The company sold over 1.03 billion pounds of copper, up from 848 million pounds during the same period last year.
At the end of Q2, 76 hedge funds tracked by Insider Monkey had stakes in Freeport-McMoRan Inc. (NYSE:FCX), valued at $3.8 billion. The number of hedge funds having positions in the company stood at 68 in the previous quarter, presenting a positive hedge fund sentiment.
1. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 87
Share Price as of November 12: $46.91
Bank of America Corporation (NYSE:BAC) is an American investment bank and financial services company. It tops our list of the best inexpensive stocks to buy right now.
On October 20, Bank of America Corporation (NYSE:BAC) announced a quarterly dividend of $0.21 per share, yielding 1.78%. The company has been increasing its dividend for the past year. In Q3, Bank of America Corporation (NYSE:BAC) reported 3.2 million consumer investment accounts, presenting a 9% growth from the previous quarter. Moreover, the company’s sales and trading revenue also grew by 12% at $3.6 billion, compared with the prior-year quarter. This October, Wells Fargo lifted its price target on Bank of America Corporation (NYSE:BAC) to $60, while keeping an Overweight rating on the shares.
Of the 873 hedge funds tracked by Insider Monkey, 87 hedge funds had positions in Bank of America Corporation (NYSE:BAC) in Q2, compared with 97 in the previous quarter. The total value of these stakes is over $46.5 billion, up from $45.3 billion in Q1.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
You can also take a look at 10 Best Cheap Stocks To Buy Now and 10 Cheap Pharmaceutical Stocks For 2021.
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Disclosure. None. 10 Best Inexpensive Stocks to Buy Right Now is originally published on Insider Monkey.
