On January 21, Liz Ann Sonders, Chief Investment Strategist at Schwab Center for Financial Research, appeared on CNBC to state that markets face instability marked by fading risk appetite, rotating leadership, higher volatility, and a global sell-off that rewards diversification and discipline over prediction. The conversation began with a look at the then-current market behavior following the worst sell-off since October. Sonders noted that futures are slightly higher and anticipates a rubber band effect at the opening bell, where the market bounces back from the previous day’s losses. This is described as a repetitive pattern seen over the last year in response to geopolitical shock crises. She attributed this resilience to a powerful cohort of retail traders who remain conditioned with a buy-the-dip mentality, leading to knee-jerk reactions that move in the opposite direction of a major downturn.
Sonders introduced instability as the word of the day and argued that the term uncertainty no longer goes far enough to describe the current backdrop. This instability applies to geopolitics, trade policy, and monetary policy, creating an environment that keeps market participants on their toes. Unlike a normal cycle, where one simply waits for a specific data point to resolve an uncertainty, instability is described as adifferent animal that lacks such a straightforward resolution.
That being said, we’re here with a list of the 10 best large cap stocks to buy under $50.
Our Methodology
We used the Finviz stock screener to compile a list of large-cap stocks that were trading between $10 billion and $200 billion and had a share price under $50. We then selected 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on February 3.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Large Cap Stocks to Buy Under $50
10. SLB (NYSE:SLB)
Number of Hedge Fund Holders: 70
SLB (NYSE:SLB) is one of the best large cap stocks to buy under $50. On February 1, Jefferies increased its price target for SLB from $51 to $58, while maintaining a Buy rating. The firm credits the stock’s recent gains to a valuation catch-up and notes that its current valuation remains attractive. Additionally, Jefferies anticipates further upside as the business cycle potentially improves.
In other news, on January 28, SLB secured two five-year contracts from Petroleum Development Oman/PDO to provide wellheads and artificial lift technologies for Block-6, which is the largest oil and gas concession in Oman. The agreement focuses on enhancing production efficiency and recovery rates through the supply of electric submersible pumps, progressive cavity pumps, and specialized wellhead systems. The deal also advances in-country value, with SLB committing to expand local manufacturing, including the production of made-in-Oman gate valves within the first six months.
A day before that, UBS analyst Josh Silverstein increased the price target for SLB (NYSE:SLB) from $50 to $61, while maintaining a Buy rating.
SLB (NYSE:SLB) provides technology for the energy industry worldwide. It operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems.
9. Kenvue Inc. (NYSE:KVUE)
Number of Hedge Fund Holders: 73
Kenvue Inc. (NYSE:KVUE) is one of the best large cap stocks to buy under $50. On January 30, Jefferies downgraded Kenvue to Hold from Buy and lowered the price target to $18 from $23. Following shareholder approval for the Kimberly-Clark merger, the firm noted that Kimberly-Clark Corp. (NASDAQ:KMB) seems comfortable with Kenvue’s litigation risks and slowing trends. Jefferies expects limited upside as shares trade near the $18 offer value, resulting in the stock’s removal from its Franchise Pick list.
On January 29, Shareholders of Kimberly-Clark and Kenvue overwhelmingly approved all proposals for Kimberly-Clark’s acquisition of Kenvue. Preliminary results show that approximately 96% of Kimberly-Clark shares present at the meeting supported the issuance of common stock for the deal, while roughly 99% of Kenvue’s voting shares (representing about 77% of all outstanding stock) voted in favor of the merger agreement.
CEOs from both companies expressed confidence that the combination will create a global leader in health and wellness by uniting iconic brands like Huggies and Kleenex with Tylenol and Neutrogena. The transaction is currently expected to close in H2 2026, pending final regulatory approvals and customary closing conditions.
Kenvue Inc. (NYSE:KVUE) operates as a consumer health company in the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America. It operates through three segments: Self Care, Skin Health and Beauty, and Essential Health.
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