In this article, we will take a look at the stocks under $50 to buy now.
These days, everyone is seeking high returns with the minimum possible investment, and in a market dominated by big names and elevated valuations, it is challenging to identify stocks that are actually worthy of attention. The truth is, most of the compelling investment prospects don’t come with a heavy price tag and are often found among stocks that remain reasonably priced and overlooked.
According to a Goldman Sachs article, titled “Market Know-How 1Q 2026,” published on January 15, three factors will influence 2026: solid market expansion, normalizing inflation, and continued AI spending. With billions of dollars spent on AI models and compute, investment opportunities are being reshaped globally, placing emerging markets in the middle of this structural transition, the article notes.
The authors anticipate that, in the U.S., activity is likely to remain strong, backed by AI-related capex, a relatively easy financial environment, and a supportive fiscal impulse from the “One Big Beautiful Bill.” However, risks such as a weaker US labor market, greater circularity in the AI ecosystem, and higher inflation persist in the long run.
As stated in the article by Simona Gambarini, Senior Market Strategist, Strategic Advisory Solutions, and one of the authors of the publication,
“The 2026 backdrop is constructive, but several key risks could still materially reshape the economic and market outlook over the next year.”
Keeping this macroeconomic outlook in mind, we have compiled a list of stocks under $50 to buy now.
Our Methodology
For this article, we began by filtering for companies with a market capitalization of over $2 billion and a trading price under $50. After this initial screening, we shortlisted stocks with the highest number of hedge fund holdings, based on Insider Monkey’s database, as of Q3 2025. Finally, we selected the stocks with the highest upside potential from the top 20 stocks by hedge fund holdings.
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. QXO, Inc. (NYSE:QXO)
Upside Potential as of January 21, 2026: 27.61%
Number of Hedge Fund Holders: 65
On January 16, Oppenheimer lifted the price target on QXO, Inc. (NYSE:QXO) to $30 from $27 and maintained an Outperform rating. According to TheFly, the firm believes the company is likely to report “sizable, incremental M&A,” which it believes will be a growth driver. In the initial two weeks of 2026, the company issued equity for the third time, with the first two equity raises tied to the condition that QXO will announce meaningful M&A activity by July 15, 2026.
On the same day, Benchmark maintained its Buy rating on QXO, Inc. (NYSE:QXO), with a price target of $50. As the consensus high price target, it implies an upside potential of 112.68%.
The company remains the “Best Idea” for the firm, given a potential deal announcement that could lead to “multiple arbitrage” for the stock. Benchmark notes that the equity raise, along with $3 billion recently secured, places QXO, Inc. (NYSE:QXO) favorably for its next acquisition target.
QXO, Inc. (NYSE:QXO) is a Connecticut-based distributor of roofing, waterproofing, and other building products. The company serves a wide range of clients, including contractors, distributors, and suppliers.
11. Amer Sports, Inc. (NYSE:AS)
Upside Potential as of January 21, 2026: 27.80%
Number of Hedge Fund Holders: 63
On January 14, Joseph Civello, an analyst at Truist, lifted the price target on Amer Sports, Inc. (NYSE:AS) to $46 from $45 and reiterated a Buy rating. According to the firm, the “durable growth levers across the business” are the basis for its sustained positive outlook.
What strengthens this bullish story is the company’s modest brand awareness in the U.S., low competition, and appealing higher-income clientele, as these factors back substantial growth prospects in the long haul for Amer Sports, Inc. (NYSE:AS), the firm highlighted. It also added that the company’s management remains positive as well. The leadership has outlined a long-term model through 2030 that includes a CAGR in the low double-digits to mid-teens and an annual acceleration in adjusted operating margin of 30-70 basis points or more.
With multiple growth projects across several brands, a set execution history in China, and the probability of margin improvements from scale and transition toward softgoods, Amer Sports, Inc. (NYSE:AS) is well-positioned to achieve its five-year EPS CAGR of more than 25% and FY30 EPS of over $2.50 targets.
Amer Sports, Inc. (NYSE:AS) is a Finland-based provider of sports equipment, apparel, footwear, and other related accessories. Founded in 1950, the company operates through Technical Apparel, Outdoor Performance, and Ball & Racquet Sports segments.
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