On February 4, Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, joined ‘Squawk Box’ on CNBC to discuss the latest market trends and the 2026 outlook. Parker characterized the current market action as healthy and specifically noted that major averages remain near all-time highs even as the tech sector has become the worst-performing sector in the S&P 500.
He explained that this represents a broadening story where cyclical sectors are picking up the slack. This rotation alleviates long-standing investor anxiety regarding concentration risk in tech. While he favored the long-term tech story, he anticipates a period of consolidation as companies grow into their earnings. He also highlighted cyclical opportunities in the US, particularly in the industrial and power sectors.
Parker’s projections for the S&P 500 include a base case of high single-digit returns (targeting 7,200 to 7,400) and an aggressive bull case (targeting 8,000 to 8,200). He explained that the base case relies on low double-digit earnings growth with some multiple contraction. To reach the bull case, the market needs a broadening cyclical recovery, earnings growth from non-tech sectors, and AI productivity benefits transitioning from theoretical talk into measurable action. If these conditions are met, Parker believes that investors will be willing to pay higher multiples on top of mid-teens earnings growth.
That being said, we’re here with a list of the 12 best stocks under $50 to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of stocks with share prices under $50. We then selected 12 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. The hedge fund data was sourced from Insider Monkey’s database.
Note: All data was sourced on February 16.
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).
12 Best Stocks Under $50 to Invest In
12. CoStar Group Inc. (NASDAQ:CSGP)
Number of Hedge Fund Holders: 57
CoStar Group Inc. (NASDAQ:CSGP) is one of the best stocks under $50 to invest in. On February 4, Wells Fargo reduced its price target for CoStar Group from $55 to $48 with an Underweight rating. The firm noted that information services shares recently declined due to AI-related concerns following Gartner’s earnings and Anthropic’s expansion into legal workflows. Despite these trends, the firm views many of these market reactions as unwarranted and identifies attractive buying opportunities among information services companies that possess proprietary data.
However, on January 27, BTIG analyst Jake Fuller recently upgraded CoStar Group from Neutral to Buy with an $80 price target, citing low market expectations and investment levels that have moved past their peak. Fuller noted that Homes.com is gaining momentum and anticipates that an upcoming AI-driven product update will resonate with investors.
Furthermore, the firm raised its revenue estimates for Q4 and FY 2026, expressing expectations for CoStar Group Inc. (NASDAQ:CSGP) to ramp up bookings, achieve double-digit organic growth, and potentially exceed Street expectations.
CoStar Group Inc. (NASDAQ:CSGP) provides information, analytics, and online marketplace services in the US, Canada, Europe, the Asia Pacific, and Latin America.
11. Maplebear Inc. (NASDAQ:CART)
Number of Hedge Fund Holders: 60
Maplebear Inc. (NASDAQ:CART) is one of the best stocks under $50 to invest in. On February 13, Needham raised its price target for Instacart from $50 to $55 and maintained a Buy rating. The firm noted that the company’s ongoing execution serves as a positive indicator against competition concerns.
On the same day, Cantor Fitzgerald lowered its price target on Instacart to $47 from $54 while keeping an Overweight rating. The firm noted that Instacart reported a record 14% GTV growth in Q4 2025 and exceeded EBITDA forecasts by 4%, with Q1 2026 guidance suggesting continued growth and margin expansion. Cantor remains confident in the company’s grocery fundamentals and noted that key initiatives in marketplace expansion, enterprise, advertising, and AI integration are on track.
However, Benchmark raised its price target on Maplebear Inc. (NASDAQ:CART) to $55 from $53 with a Buy rating following a Q4 report described as solid across the board, despite gross margin pressure from an off-site advertising revenue mix-shift. The firm noted that Instacart does not see a meaningful impact from competition, stating that Amazon focuses on smaller fill-in orders and that its growth appears to stem more from in-store activity than market share shifts.
Maplebear Inc. (NASDAQ:CART), doing business as Instacart, provides online grocery shopping services to households in North America. Its service can be provided through the company’s mobile application or website.
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