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.
10. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is one of the best stocks under $50 to invest in. On January 26, Susquehanna analyst Charles Minervino lowered the firm’s price target on Occidental to $51 from $55 while keeping a Positive rating. This decision was made as part of the firm’s Q4 2025 exploration and production group preview.
Minervino noted that the oil market remains oversupplied due to the unwinding of OPEC’s voluntary production cuts, which, combined with soft global demand growth, is expected to pressure pricing. Consequently, the firm reduced its 2026 West Texas Intermediate price assumption to $60 per barrel from $65. Still, Susquehanna remains bullish on the long-term demand for natural gas driven by data centers and electrification.
On January 23, Morgan Stanley analyst Devin McDermott lowered the firm’s price target on Occidental Petroleum Corporation (NYSE:OXY) to $50 from $51 with an Equal Weight rating. In a Q4 preview for E&Ps, oil majors, and Canadian producers, the firm updated its 2026-27 oil price deck to reflect strip prices as of January 7. The firm informed investors that while Q4 operational updates are expected to be fairly clean, cash flow may be lighter due to price realizations.
Occidental Petroleum Corporation (NYSE:OXY), together with its subsidiaries, acquires, explores, and develops oil & gas properties in the US and internationally. It operates through three segments: Oil & Gas, Chemical, and Midstream & Marketing.
9. Fluor Corporation (NYSE:FLR)
Number of Hedge Fund Holders: 64
Fluor Corporation (NYSE:FLR) is one of the best stocks under $50 to invest in. On January 14, Bank of America analyst Michael Feniger raised the firm’s price target on Fluor to $47.50 from $43 and kept a Neutral rating. This adjustment was made as part of the firm’s 2026 outlook for the machinery, engineering, construction, and waste sectors.
While much of Feniger’s coverage experienced a multiple re-rating to a recovery valuation as demand and earnings per share reached their lows, the analyst suggested that future outperformance depends on a transition from multiple expansion to actual earnings growth and noted that not all companies will successfully make this transition.
In Q3 2025, Fluor Corporation (NYSE:FLR) reported a $653 million revenue reversal and a $533 million segment loss in Energy Solutions following an adverse court ruling regarding the Santos project. Despite this impact, the company raised its 2025 adjusted EBITDA guidance to a range of $510 to $540 million and adjusted EPS guidance between $2.10 and $2.25, supported by $3.3 billion in new awards and a robust $28 billion backlog.
Fluor Corporation (NYSE:FLR) provides engineering, procurement, and construction; fabrication and modularization; and project management services worldwide. The company operates through three segments: Urban Solutions, Energy Solutions, and Mission Solutions.
8. Block Inc. (NYSE:XYZ)
Number of Hedge Fund Holders: 64
Block Inc. (NYSE:XYZ) is one of the best stocks under $50 to invest in. On February 5, Citi analyst Bryan Keane lowered the firm’s price target on Block to $85 from $105 while keeping a Buy rating. The firm reset the target ahead of the company’s Q4 2025 report, though Citi still expects Block to achieve its 19% gross profit growth estimate.
On January 27, Cantor Fitzgerald initiated coverage of Block with an Overweight rating and an $87 price target and noted that the company’s turnaround is gaining momentum. The firm highlighted that new product initiatives suggest the firm’s innovation engine is performing at a high level. While Cantor found Block’s medium-term guidance impressive, it emphasized that the company’s future success now depends on its ability to execute those plans.
Additionally, on January 20, Truist analyst Matthew Coad raised the firm’s price target on Block Inc. (NYSE:XYZ) to $72 from $68 with a Hold rating as part of a broader Q4 earnings preview for the FinTech sector. Coad expects solid quarterly results but noted that difficult year-over-year comparisons might limit volume-related beats.
While Truist remains optimistic about the sector throughout 2026, the firm suggested that some management teams could provide initial 2026 guidance that resets Street expectations slightly lower.
Block Inc. (NYSE:XYZ), together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the US and internationally. It has two segments: Square and Cash App.
7. Chipotle Mexican Grill Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 65
Chipotle Mexican Grill Inc. (NYSE:CMG) is one of the best stocks under $50 to invest in. On February 5, Guggenheim lowered the firm’s price target on Chipotle to $36 from $37 with a Neutral rating. The firm noted that management established a conservative flat same-store sales growth guidance for 2026 and a framework for margin reinvestment, calling the move important while also observing that the stock’s current valuation does not yet reflect flat same-store sales for the year.
A day before that, Telsey Advisory analyst Sarang Vora lowered the firm’s price target on Chipotle Mexican Grill to $48 from $50 while maintaining an Outperform rating. Vora informed investors that the company’s Q4 results exceeded expectations, driven by successful marketing strategies, menu innovations, and operational improvements.
Additionally, the firm noted that Chipotle Mexican Grill Inc. (NYSE:CMG) remains on track to become a leading restaurant brand and considers the risk-reward profile favorable at its current valuation.
Chipotle Mexican Grill Inc. (NYSE:CMG), together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages, such as burritos, burrito bowls, quesadillas, tacos, and salads, as well as kids’ meals, chips, and sides
6. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 68
DraftKings Inc. (NASDAQ:DKNG) is one of the best stocks under $50 to invest in. On February 13, BMO Capital analyst Brian Pitz lowered the firm’s price target on DraftKings to $42 from $50 while maintaining an Outperform rating. The analyst noted that the company’s 2026 guidance fell 8% below revenue and 20% below EBITDA estimates at the midpoint.
This guidance is discouraging despite management’s claims that prediction markets have a minimal impact on business. Additionally, the firm also suggested that a softer January handle will likely persist in fueling concerns regarding competition from prediction markets as DraftKings expands its own prediction offerings.
On the same day, Canaccord lowered its price target on DraftKings Inc. (NASDAQ:DKNG) to $44 from $50 while maintaining a Buy rating following solid Q4 results. Despite the positive quarter, which was supported by favorable sports outcomes and a 4% year-over-year increase in January handle, the stock experienced an after-hours sell-off due to disappointing FY 2026 guidance. Management also addressed competition from prediction markets, noting only a modest impact on engagement centered primarily among lower-value customers, which resulted in an immaterial effect on overall revenue.
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company in the United States and internationally.
5. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 70
Antero Resources Corporation (NYSE:AR) is one of the best stocks under $50 to invest in. On February 13, Jefferies resumed coverage of Antero Resources with a Buy rating and increased its price target to $50 from $46. The firm noted that the company’s Q4 2025 results highlighted its strong positioning to benefit from tightening natural gas fundamentals driven by demand from LNG and data centers.
Earlier on January 23, Morgan Stanley lowered its price target on Antero Resources Corporation (NYSE:AR) to $46 from $48 with an Overweight rating. In a Q4 preview for E&Ps, oil majors, and Canadian producers, the firm updated its 2026-27 oil price deck to reflect strip prices as of January 7. The firm informed investors that while Q4 operational updates are expected to be fairly clean, cash flow may be lighter due to price realizations.
On January 21, Barclays lowered its price target on Antero Resources to $41 from $46 with an Equal Weight rating. As part of a Q4 preview for the E&P sector, the firm adjusted several ratings and targets, noting that the upstream sector’s cash return model remains resilient despite macroeconomic volatility. While Barclays sees attractive opportunities in the US onshore, it advised investors to tread carefully due to near-term commodity uncertainty.
Antero Resources Corporation (NYSE:AR) is an independent oil and natural gas company that develops, produces, explores, and acquires natural gas, NGLs, and oil properties in the US. It has three segments: Exploration & Production, Marketing, and Equity Method Investment in Antero Midstream.
4. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 72
Centene Corporation (NYSE:CNC) is one of the best stocks under $50 to invest in. On February 10, Deutsche Bank raised its price target for Centene from $32 to $39 while keeping a Hold rating on the shares. The firm noted that the shares had previously been caught in a downward trend affecting its industry peers.
Earlier on February 6, Centene Corporation (NYSE:CNC) reported its Q4 2025 earnings report, where the company’s diluted loss totaled $1.19 per share, though full-year adjusted EPS of $2.08 slightly exceeded expectations. Total premium and service revenue for 2025 reached $174.6 billion, supported by a Medicaid membership of 12.5 million and a year-end medical claims liability of $20.5 billion.
Looking ahead to 2026, Centene issued revenue guidance of $170 to $174 billion and expects adjusted EPS to grow by over 40% to more than $3. Management anticipates meaningful margin recovery in the ACA marketplace, where membership is projected to hit 3.5 million, and continues to move toward a breakeven point in Medicare Advantage. Despite a projected 5% to 6% decline in Medicaid membership and pressure on 2027 Medicare rates, the firm expressed confidence in its 2026 outlook.
Centene Corporation (NYSE:CNC) operates as a healthcare enterprise that provides programs and services to underinsured & uninsured families and commercial organizations in the US.
3. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 74
Unity Software Inc. (NYSE:U) is one of the best stocks under $50 to invest in. On February 13, Deutsche Bank analyst Benjamin Black reduced the firm’s price target on Unity from $45 to $30 while maintaining a Hold rating.
A day before that, Needham lowered its price target on Unity to $35 from $50 with a Buy rating following the company’s Q4 results. The firm highlighted positive execution regarding Vector and noted double-digit sequential growth and expectations for continued momentum throughout FY26. According to the analyst, Vector remains the primary reason to own the shares and would likely cover Unity’s current enterprise value in a sum-of-the-parts valuation.
Separately, Wedbush lowered its price target on Unity Software Inc. (NYSE:U) to $30 from $37 and kept an Outperform rating. The firm noted that Unity’s decent Q4 results were overshadowed by soft Q1 2026 guidance and the persistent perceived threat from AI. Additionally, the firm highlighted a strategy shift that they believe undermines the company’s current business model structure.
Unity Software Inc. (NYSE:U) operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the US, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America.
2. Zillow Group (NASDAQ:Z)
Number of Hedge Fund Holders: 74
Zillow Group (NASDAQ:Z) is one of the best stocks under $50 to invest in. On February 12, Susquehanna lowered its price target for Zillow Group from $80 to $50 and maintained a Neutral rating. The firm noted that the company is executing effectively despite a challenging housing market and expressed belief that its current initiatives will drive incremental growth and margin expansion over time. While near-term legal expenses are currently impacting EBITDA, Susquehanna indicated that management remains comfortable with its annual EBITDA expectations.
On the same day, DA Davidson lowered its price target on Zillow Group to $75 from $95 with a Buy rating on the shares. The firm characterized the company’s recent quarterly report as mixed but noted that management issued a solid outlook despite a still tepid housing market. However, the firm kept its 2026 adjusted EBITDA estimate unchanged, citing elevated legal expenses as a primary factor.
At the same time, Citi also lowered its price target on Zillow Group (NASDAQ:Z) to $78 from $100 while maintaining a Buy rating.
Zillow Group (NASDAQ:Z) operates a real estate application and website that connects consumers with technology, agents & loan officers, and digital solutions in the US. The company operates through four categories: Residential, Mortgages, Rentals, and Other.
1. PayPal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 86
PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best stocks under $50 to invest in. On February 10, Truist lowered the firm’s price target on PayPal to $39 from $58 and kept a Sell rating as part of the firm’s broader research note. The note updated models for payment companies following Q4 2025 earnings. Truist cited lower estimates for the company due to a combination of slower volume growth and take rate compression.
Furthermore, on February 4, RBC Capital lowered its price target on PayPal to $59 from $91 and maintained an Outperform rating. The firm noted that the abrupt CEO change indicates the pace of turnaround for Branded Checkout’s TPV growth was moving too slowly, leading to a material reduction in FY 2026 guidance. Consequently, the firm also withdrew the FY 2027 projections that were previously provided during PayPal’s last Investor Day.
On the same day, Susquehanna lowered its price target on PayPal Holdings Inc. (NASDAQ:PYPL) to $63 from $90 with a Positive rating. Although the firm noted that some initiatives showed progress, it expressed disappointment that branded checkout growth slowed to 1% on a currency-neutral basis, down from 5% in Q3. The firm highlighted that this deceleration was driven by headwinds in both US and international retail, as well as a slowdown in high-growth verticals like crypto.
PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers.
While we acknowledge the potential of PYPL 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 PYPL and that has 100x upside potential, check out our report about this cheapest AI stock.
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