In this article, we will be taking a look at the 10 best low cost stocks to buy under $50.
As businesses release their Q2 2025 quarterly profits, Jordan Jackson, global market strategist at JPMorgan Asset Management, joins CNBC Television on July 19 to discuss the market’s future. In an earlier message, he said he did not believe the market would enter a recession in the upcoming year. Nonetheless, there may be some short-term challenges that affect the market. Jackson elaborated on these obstacles and mentioned possible reciprocal tariffs that might begin on August 1. According to him, this could lead to a significant rise in the average tariff effective rate. According to the market, if reciprocal tariffs are implemented, the present 15% market share would increase to almost 22%. Although this is a significant increase, he pointed out that it is still less than the 30% average that was revealed earlier on April 2.
Jackson also noted that August 12 is a significant date since it is anticipated that trade agreements with China will be revealed on this day. He pointed out that despite these short-term challenges, the markets are already at all-time highs and will continue to rise over the next months. Jackson also mentioned the companies’ perseverance throughout the uncertain time when discussing the results season. He emphasized that the majority of businesses had taken significant steps to manage the impact of tariffs, freeze employment, and reduce staff. He thinks that some of the major market players will show greater resiliency as the earnings season goes on.
With this in mind, let’s look at the 10 Best Low-Cost Stocks to Buy Under $50.
Stocks
Our Methodology
Our methodology involved filtering stocks using a stock analysis screen based on two key criteria: a forward price-to-earnings (PE) ratio below 20 and a stock price under $50. From the filtered results, we then ranked the stocks by lowest stock price as of July 29, aiming to highlight affordable, potentially undervalued opportunities.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 10 best low-cost stocks to buy under $50.
10. Lucid Group, Inc. (NASDAQ:LCID)
Stock Price: $3.040
Lucid Group, Inc. (NASDAQ:LCID) is among the cheap stocks to buy. It is a U.S.-based luxury EV manufacturer known for its Lucid Air sedan and is expanding its footprint with the upcoming Gravity SUV and a growing emphasis on advanced technology. The company operates high-tech manufacturing facilities in Arizona and focuses on performance, efficiency, and premium features.
In July 2025, Lucid Group, Inc. (NASDAQ:LCID) launched key updates to its DreamDrive Pro driver-assistance system, including new hands-free driving and automated lane change features. These enhancements, delivered via over-the-air updates, place the company among leaders in driving automation and align with its long-term push toward autonomous capabilities.
The corporation also announced that Air owners will gain access to Tesla’s Supercharger network starting July 31, 2025, through a NACS adapter. This dramatically improves charging accessibility for LCID drivers and addresses a core challenge for EV adoption.
The business expanded its manufacturing capacity with the opening of the Phoenix Hub, acquired from Nikola Corporation. This facility will support the production of the Gravity SUV and a future midsize EV platform, and is expected to create up to 500 jobs over the next few years.
On the supply chain front, Lucid Group, Inc. (NASDAQ:LCID) partnered with critical mineral producers to strengthen sourcing resilience and support sustainable vehicle production in the U.S.
Looking ahead, the company is ramping up Gravity SUV production and plans a 1:10 reverse stock split aimed at attracting a broader investor base. Additionally, a new marketing campaign featuring actor Timothée Chalamet will debut in fall 2025, reinforcing the corporation’s image as a premium, innovative brand.
9. Grupo Aval Acciones y Valores S.A. (NYSE:AVAL)
Stock Price: $2.990
Grupo Aval Acciones y Valores S.A. (NYSE:AVAL), founded in 1994, is a prominent Colombian financial holding company with a strong presence in Colombia and Central America. It operates through a diverse portfolio of subsidiaries, including Banco de Bogotá, Banco de Occidente, Banco Popular, and Corficolombiana, offering services in banking, lending, pensions, insurance, and investments.
In 2025, Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) has shifted strategic focus toward digital transformation and ESG (environmental, social, and governance) leadership. The company continues to enhance digital banking across its subsidiaries, responding to fintech competition and evolving customer preferences. Investment in digital infrastructure is enabling new loyalty programs and customer engagement platforms, signaling a long-term commitment to innovation.
The business has also made notable progress in sustainability. Its April 2025 sustainability report outlines advancements in financial inclusion, sustainable financing, job creation, and environmental protection. The corporation improved its standing on the Merco ESG index and expanded various social and environmental programs across the region.
Financially, Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) demonstrated strong investor confidence by issuing $300 billion in bonds in early 2025, which will support further growth and ESG initiatives. Regionally, it continues to strengthen operations in Central America, using its diversified model to ensure stability and expansion.
8. Gerdau S.A. (NYSE:GGB)
Stock Price: $2.850
Gerdau S.A. (NYSE:GGB) is Brazil’s largest steel producer and a major global supplier of long and special steels, with operations in seven countries and over 30,000 employees. With more than 120 years of history, the company serves industries such as construction, automotive, energy, and machinery, and is Latin America’s largest recycler, producing around 70% of its steel from scrap. It is also among the cheap stocks to buy for investors seeking exposure to industrials and sustainability.
In recent years, Gerdau S.A. (NYSE:GGB) has ramped up investment in green steel and advanced technologies. In March 2025, the corporation inaugurated a new hot-rolled coil line at its Ouro Branco facility in Brazil, aiming to increase competitiveness in high-value steels and add R$400 million to its annual EBITDA. It is also studying the feasibility of building a special steel unit in Mexico to serve the fast-growing automotive market, using scrap-based, low-carbon production.
Gerdau S.A. (NYSE:GGB)’s North American operations are central to its global strategy, marked by a record order backlog in Q1 2025 and the completion of a cutting-edge steel heat treatment facility in Texas. This plant supports renewable energy sectors and produces extra-long, heat-treated bars used in wind energy and infrastructure.
Sustainability remains a core focus. The business earned international recognition for environmental and social initiatives, improved water management, and received B Corp Certification in North America, strengthening its position as a sustainability leader in the steel industry.
7. Ultrapar Participações S.A. (NYSE:UGP)
Stock Price: $2.830
Ultrapar Participações S.A. (NYSE:UGP), a leading Brazilian conglomerate in fuel, gas distribution, and logistics, is expanding its footprint in integrated infrastructure through the recent acquisition of a controlling 50.15% stake in Hidrovias do Brasil S.A. Announced on May 8, 2025, this strategic move strengthens the business’s presence in Brazil’s critical agribusiness and transportation sectors by adding river-based logistics to its portfolio. Though near-term EBITDA contribution and synergies are expected to be modest, the acquisition marks a pivotal step in the company’s transition into a diversified energy and logistics platform.
S&P Global noted that while the acquisition may temporarily increase Ultrapar Participações S.A. (NYSE:UGP)’s leverage, the company’s solid operational performance is likely to support gradual financial improvement as integration advances. The corporation continues to invest heavily across its subsidiaries: Ipiranga is enhancing its digital and service infrastructure, Ultragaz is growing its bulk gas segment, and Ultracargo is undergoing major terminal expansions in Santos, Palmeirante, Rondonópolis, Itaqui, and Suape, with completion expected by 2026.
These initiatives reflect a broader strategy to modernize and expand Ultrapar Participações S.A. (NYSE:UGP)’s role in Brazil’s infrastructure ecosystem. Supported by stable cash flows, the corporation is also pursuing shareholder-friendly actions such as dividends and share buybacks. Market sentiment has responded positively, Scotiabank recently upgraded the stock to “sector outperform” following the Hidrovias deal.
6. Banco Bradesco, S.A. (NYSE:BBD)
Stock Price: $2.810
Banco Bradesco, S.A. (NYSE:BBD), one of Brazil’s largest financial institutions, is currently in a phase of strategic consolidation following years of growth and digital transformation. Founded in 1943 and headquartered in Osasco, São Paulo, the company offers a wide range of services, including retail banking, insurance, and asset management. Its ongoing emphasis on digital innovation and customer-centric solutions has positioned it as a key player in Brazil’s evolving financial landscape.
In June 2025, Banco Bradesco, S.A. (NYSE:BBD) reported no securities or derivatives activity by its management and their families, which is a rare move for a bank of its size. This suggests a deliberate period of operational steadiness, possibly signaling internal restructuring or preparation for future strategic initiatives. Despite this pause, market sentiment remains strong. The bank’s stock rose 2.19% over the past week and 17% over the past month (as of late May 2025), outperforming sector peers and attracting attention among cheap stocks to buy.
Analyst ratings have remained bullish, driven by Banco Bradesco, S.A. (NYSE:BBD)’s consistent earnings performance and technical strength. The corporation’s digital-first approach continues to play a critical role in enhancing customer experience and operational efficiency, especially in response to rising fintech competition across Latin America. The business’s current phase of stability likely serves as a foundation for its next wave of digital and market expansion, which positions it for long-term competitiveness as economic conditions improve.
5. Altice USA, Inc. (NYSE:ATUS)
Stock Price: $2.790
Altice USA, Inc. (NYSE:ATUS), one of the largest broadband and video service providers in the U.S., serves around 4.5 million customers across 21 states under the Optimum brand. It also operates Optimum Media for advertising solutions and News 12 for hyperlocal news coverage.
In a significant move, the company announced a $1 billion asset-backed loan facility on July 17, 2025, secured by its Hybrid-Fiber Coaxial (HFC) network assets in the Bronx and Brooklyn. Partnering with Goldman Sachs and TPG Angelo Gordon, this marks a strategic shift toward infrastructure-backed financing. By monetizing physical network assets, Altice USA, Inc. (NYSE:ATUS) aims to unlock liquidity for reinvestment without diluting equity or relying on traditional debt, strengthening its financial position.
This financing strategy aligns with the growing demand for high-speed internet and underscores the importance of maintaining and upgrading broadband infrastructure. It also reflects a broader industry trend of telecom companies leveraging physical assets to support growth and competitiveness. Altice USA, Inc. (NYSE:ATUS) is set to release its Q2 2025 earnings on August 7, which will offer deeper insights into the company’s progress.
4. Lufax Holding Ltd (NYSE:LU)
Stock Price: $2.770
Lufax Holding Ltd (NYSE:LU), a leading Chinese fintech firm serving small and micro businesses, is undergoing strategic shifts to navigate a challenging market in 2025. A key recent development was the sale of non-performing loans (NPLs) through its subsidiary, Ping An Consumer Finance. The transaction involved offloading 469 million yuan in NPLs for 36.44 million yuan to Sh China Merch Ping An Asset Management. This move reduced credit risk and supported a drop in the company’s loan portfolio by 18%, helping stabilize investor sentiment amid asset quality concerns.
In addition to asset optimization, Lufax Holding Ltd (NYSE:LU) is focusing on digital transformation through new partnerships and AI-driven innovation. These efforts aim to boost operational efficiency and profitability while enhancing its competitive edge in a crowded fintech market. The business is also pursuing cost-cutting measures as part of a broader strategy to improve earnings.
Despite these positive steps, cheap stocks to buy like Lufax Holding Ltd (NYSE:LU) saw sharp declines in late July, dropping over 11% and 12% on back-to-back days. The sell-off reflected investor concerns over limited near-term catalysts and persistent pressure from traditional banks.
Looking ahead, the corporation plans to continue managing credit risk proactively, expand its digital offerings, and pursue strategic partnerships. These efforts are expected to support earnings growth and may enable the resumption of dividends by the end of the 2025 fiscal year.
3. Ambev S.A. (NYSE:ABEV)
Stock Price: $2.350
Ambev S.A. (NYSE:ABEV), based in São Paulo, Brazil, is Latin America’s largest brewer and one of the world’s top beer producers. Operating across 18 countries, its brand portfolio includes Brahma, Skol, Antarctica, and premium labels like Budweiser, Stella Artois, and Corona.
As of mid-2025, Ambev S.A. (NYSE:ABEV)’s stock surged 34.65% year-to-date, supported by earnings growth, improved operations, and a favorable Latin American macroeconomic backdrop. A key driver behind this momentum is the company’s strategic premiumization. Premium beers now account for 22% of total volumes, up from 18% in 2024, contributing to a 10% increase in gross margins.
In line with shifting consumer preferences, the business is also expanding its low-calorie and non-alcoholic beer offerings. The corporation’s sustainability initiatives, including its goal of using 100% renewable energy in Brazilian operations by 2026, further strengthen its appeal among ESG-focused investors.
Operationally, Ambev S.A. (NYSE:ABEV) is exploring AI to enhance supply chain efficiency and manage raw material costs. With a 60% market share in Brazil’s beer market and 25% in soft drinks, the company reported 0.7% volume growth in Q1 2025, driven by strong performance in Brazil and Argentina.
2. Plug Power Inc. (NASDAQ:PLUG)
Stock Price: $1.790
Plug Power Inc. (NASDAQ:PLUG) is a key player in the clean energy space, developing hydrogen fuel cells and electrolyzer systems to support the decarbonization of transport, logistics, and industrial sectors. The company offers a range of technologies, including fuel cell systems for vehicles, stationary fuel cells, and integrated hydrogen production and dispensing solutions.
In July 2025, Plug Power Inc. (NASDAQ:PLUG) secured a $1.66 billion conditional loan guarantee from the U.S. Department of Energy to build up to six green hydrogen plants, beginning in Texas. This major government backing reduces financial risk and fast-tracks infrastructure development. At the same time, the business extended a strategic hydrogen supply agreement through 2030 with a major U.S. industrial gas partner. This deal ensures steady hydrogen availability, lowers immediate costs, and supports the company’s growing network of over 275 hydrogen-consuming sites.
Recent U.S. Treasury guidance on hydrogen tax credits has further boosted the company’s position by allowing greater flexibility in power sourcing and widening credit eligibility. CEO Andy Marsh described this as a landmark win for both the company and the broader hydrogen industry, enhancing project feasibility and investor confidence.
Looking ahead, Plug Power Inc. (NASDAQ:PLUG) aims to produce 500 tons of green hydrogen per day in North America by 2025 and 1,000 tons globally by 2028. These targets support the company’s sustainability goals, including reducing CO₂ emissions from hard-to-electrify sectors. With proprietary technologies, strong government and industrial partnerships, and policy tailwinds, the firm is poised to lead the U.S. transition to green hydrogen at scale.
1. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Stock Price: $1.090
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) tops our list for being one of the cheap stocks to buy. It is a Swedish EV company founded in 2017 and focuses on producing premium battery electric vehicles with a strong emphasis on innovation and sustainability. Its product lineup includes the Polestar 2 sedan, Polestar 3 and 4 SUVs, Polestar 5 grand-touring sedan, and the Polestar 6 roadster.
As of mid-2025, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is demonstrating strong operational momentum and expanding strategically. In Q2 2025, the company reported retail sales of 18,049 vehicles, marking a 38% year-over-year increase. Sales in the first half of 2025 rose by 51% compared to the same period in 2024, driven by increasing consumer demand and market penetration. In Q1 2025 alone, sales surged 76% year-over-year, with gross margins turning positive at 7%, aided by a favorable sales mix and cost control.
To support future growth, the business is expanding its manufacturing capabilities through a strategic partnership with Volvo Cars. The upcoming Polestar 7, a premium compact SUV slated for launch in 2028, will be manufactured in Kosice, Slovakia. This decision enhances the corporation’s production capacity, leverages Volvo’s established infrastructure, and strengthens its position in the competitive electric SUV market.
Additionally, the company secured a $200 million equity investment from PSD Investment Limited, linked to Geely’s founder, bolstering its financial position to scale operations and roll out new models. While Polestar Automotive Holding UK PLC (NASDAQ:PSNY)’s trajectory shows promise, it must continue addressing typical EV start-up challenges, including cost structure management and cash flow improvements.
While we acknowledge the potential of PSNY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PSNY and that has 100x upside potential, check out our report about this cheapest AI stock.
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