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.
10. Carnival Corporation & plc (NYSE:CCL)
Upside Potential as of January 21, 2026: 35.42%
Number of Hedge Fund Holders: 69
On January 13, TD Cowen lifted the price target on Carnival Corporation & plc (NYSE:CCL) to $38 from $35 and maintained a Buy rating. Matching the consensus 1-year median price target, the new price target reflects an upside potential of 35.42%.
Although Caribbean yield pressures will make a “tough” earnings season for Royal and Norwegian, underlying demand for cruise remains strong, and capacity dynamics are positive through FY29, the analyst noted. With investors looking beyond “temporary” Caribbean headwinds, TD Cowen forecasts share upside in 2026.
On the same day, UBS reaffirmed its Buy rating and $38 price target on Carnival Corporation & plc (NYSE:CCL). Robin Farley, an analyst at UBS, anticipates FY26 yield growth 0.3% higher than the company’s projection of 2.5%. Despite this, the firm lowered its reported net yield forecast to 4% YoY, down from 4.4%, due to a more modest foreign exchange tailwind. The firm’s FY28 net yield estimate remains the same at 2.5% YoY growth.
Carnival Corporation & plc (NYSE:CCL) is a Florida-based provider of leisure travel services. Founded in 1972, the cruise company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other.
9. Antero Resources Corporation (NYSE:AR)
Upside Potential as of January 21, 2026: 37.41%
Number of Hedge Fund Holders: 70
On January 16, BofA cut the price target on Antero Resources Corporation (NYSE:AR) to $39 from $47 and maintained a ‘Buy’ rating on the stock. According to TheFly, market optimism for natural gas has persisted for 18 months, but BofA anticipates the risk of oversupply in the coming year. This, coupled with reduced price guidance, results in a 12% average reduction in BofA’s price projections for the gas-levered E&P group.
Just a day earlier, Benchmark reiterated its ‘Hold’ rating on Antero Resources Corporation (NYSE:AR) right after the company’s debt issuance for the $2.8 billion acquisition of HG Energy II. The firm notes that this issuance of $750 million of 5.4% notes, along with the $800 million sale of its Ohio Utica assets, is to partially fund its purchase. The remaining half, on the other hand, will be paid through a $1.5 billion term loan with a three-year maturity.
By the end of 2027, Antero Resources Corporation (NYSE:AR) will be able to fully repay the term loan, marking a clear path to debt reduction after this acquisition, concluded Benchmark.
Antero Resources Corporation (NYSE:AR) is a Colorado-based independent oil and natural gas company providing natural gas, natural gas liquids (NGLs), and oil properties. Incorporated in 2002, the company operates through three segments: Exploration and Production, Marketing, and Equity Method Investment in Antero Midstream.
8. Caesars Entertainment, Inc. (NASDAQ:CZR)
Upside Potential as of January 21, 2026: 40.58%
Number of Hedge Fund Holders: 71
On January 16, TheFly reported that Morgan Stanley has trimmed the price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $27 from $29 and maintained an Equal Weight rating on the company. According to the analyst’s remarks in a 2026 look-ahead note, gaming, lodging, and leisure fundamentals were “muted” in the previous year, as growth mainly focused on enterprises catering to more affluent customers. For 2026, the firm anticipates “more of the same fundamentally.”
On the other hand, Susquehanna lifted the price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $31 from $25 on January 8, while upgrading the stock to “Positive” from “Neutral”. The firm believes that the company has an “attractive risk/reward set-up,” with earnings guidance expected to move upward in the times ahead. From the company’s regional portfolio to improvements in Las Vegas operations, Susquehanna backed its bullish stance with many reasons.
Overall, the firm noted that although Caesars Entertainment, Inc. (NASDAQ:CZR) still has “strategic gaps” relative to premium offerings from peers, the company has successfully established itself as “largely the lowest-cost operator.”
Caesars Entertainment, Inc. (NASDAQ:CZR) is a Nevada-based gaming and hospitality company. Founded in 1937, the company manages domestic properties, operates retail and online sports wagering, and provides staffing and management services.
7. Chewy, Inc. (NYSE:CHWY)
Upside Potential as of January 21, 2026: 41.84%
Number of Hedge Fund Holders: 57
On January 13, Morgan Stanley increased the price target on Chewy, Inc. (NYSE:CHWY) to $51 from $48 and maintained an ‘Overweight’ rating. The firm believes that, for the internet space, this year will be “thematically similar” to the previous year, as the market will favour companies that report significantly positive Return on Invested Capital (ROIC) from GenAI or GPU-enabled technologies.
On the other hand, on January 6, Wolfe Research trimmed the price target on Chewy, Inc. (NYSE:CHWY) to $44 from $46, keeping an ‘Outperform’ rating, according to TheFly. The firm believes that although 2026 will be a successful year for Internet companies, the outperformance will still lag the previous three years’ performance. This is due to the ongoing stretched multiples for some companies. The prospects for upside ahead are supported by AI-related developments, solid capital allocation, and targeted re-rating opportunities.
Overall, Chewy, Inc. (NYSE:CHWY) has a ‘Buy’ rating from 69% of the analysts covering the stock, while the remaining 31% recommend a Hold, as of January 21. With a consensus 1-year median price target of $46, the stock boasts an upside potential of 41.84%.
Chewy, Inc. (NYSE:CHWY) is a Florida-based company providing pet food, pet medications, and other pet-health products, as well as pet services. Incorporated in 2010, the company offers its products through its retail websites and mobile applications.
6. DraftKings Inc. (NASDAQ:DKNG)
Upside Potential as of January 21, 2026: 43.13%
Number of Hedge Fund Holders: 68
On January 20, Benchmark reaffirmed a ‘Buy’ rating on DraftKings Inc. (NASDAQ:DKNG) with an unchanged price target of $37. This optimistic stance, suggesting an upside potential of 18%, comes even after the company’s weak performance in the New York online sports betting market. According to Investing.com, New York’s online sports betting market witnessed a sharp reversal in Week 19, with handle down 2.0% YoY and revenue drop 39.9% YoY.
Earlier on January 8, Texas Capital Securities began coverage of DraftKings Inc. (NASDAQ:DKNG) with a price target of $39, following the company’s recent valuation stability. The firm described the company as a “blue chip online gaming stock,” without specifying whether the rating was a buy, hold, or sell recommendation.
Texas Capital Securities outlined various factors tied to DraftKings Inc. (NASDAQ:DKNG)’s “outsized stock volatility” in the times ahead, including the company’s status as a pure play in the online gaming space. Additionally, the firm identified potential online gaming tax hikes, current investor concerns about hold and win rates, and the expansion of prediction markets as drivers of the aforementioned volatility.
DraftKings Inc. (NASDAQ:DKNG) is a Massachusetts-based digital sports entertainment and gaming company that offers products such as online sports betting, lottery courier services, sportsbooks, and iGaming.
5. Pinterest, Inc. (NYSE:PINS)
Upside Potential as of January 21, 2026: 43.83%
Number of Hedge Fund Holders: 66
According to TheFly, UBS trimmed the price target on Pinterest, Inc. (NYSE:PINS) to $40 from $48 and maintained a Buy rating on the stock, on January 20. As the analyst stated in a research note, fourth-quarter earnings for ad-driven firms are likely to show lower-than-usual beats, following a lagging October due to a government shutdown and a subsequent rebound in November and December. UBS notes that while five out of nine companies surpassed previous guidance, two matched the estimates, and remaining two missed expectations.
Similarly, on January 13, Goldman Sachs reduced the price target on Pinterest, Inc. (NYSE:PINS) to $32 from $36, keeping a ‘Buy’ rating. The analyst notes that both industry work and channel checks reflect a robust, steady fourth quarter, highlighting that it is backed by supportive auction trends, strong pricing per ad impression, and solid seasonal ad spend.
Overall, Pinterest, Inc. (NYSE:PINS) has a ‘Buy’ rating from 76% of the analysts covering the stock, as of January 21. With a median price target of $36, the stock has an upside potential of 43.83%.
Pinterest, Inc. (NYSE:PINS) is a California-based company operating as a visual search and discovery platform. Incorporated in 2008, the company allows users to find ideas, search, save, and shop, and to offer various advertising products.
4. Grab Holdings Limited (NASDAQ:GRAB)
Upside Potential as of January 21, 2026: 57.42%
Number of Hedge Fund Holders: 59
On January 15, Jiong Shao, an analyst at Barclays, reaffirmed a Buy rating on Grab Holdings Limited (NASDAQ:GRAB), setting a price target of $7. Slightly above the consensus 1-year median price target of $6.95, the firm’s guidance reflects an upside potential of nearly 58%.
Later on January 19, BofA Securities upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Neutral, keeping an unchanged price target of $6.30. Despite the stock’s underperformance, with the stock down 17.85% in the last six months, the firm remains confident in the company. For core mobility and deliveries businesses, the firm highlighted muted competition and better margins, and thus projected a 17% CAGR for gross merchandise value (GMV) from FY24 to FY27.
What’s even more interesting is Grab Holdings Limited (NASDAQ:GRAB)’s over $5 billion net cash position, which the firm believes reduces the downside risk. That said, higher-than-anticipated performance in GrabMart or quick commerce operations can lead to additional upside, BofA Securities asserted.
Grab Holdings Limited (NASDAQ:GRAB) is Southeast Asia’s leading superapp based on GMV in food deliveries, mobility, and the financial services sector. From necessities to earning opportunities, the company claims to be an all-in-one platform that makes each day better.
3. Riot Platforms, Inc. (NASDAQ:RIOT)
Upside Potential as of January 21, 2026: 62.55%
Number of Hedge Fund Holders: 57
On January 20, Needham raised the price target on Riot Platforms, Inc. (NASDAQ:RIOT) to $30 from $28 and maintained a Buy rating, as reported by TheFly. This updated target, reflecting an upside potential of nearly 74%, is attributed to the company’s 25MW lease contract with AMD at its recently purchased Rockdale site.
The analyst says that the yield on cost is appealing, with capital expenditure forecasted to be just $3.6 million per megawatt, despite lease economics “significantly lower than peers.” With this view in mind, Needham slightly lifted its 2026 outlook, along with 2027 estimates and target multiple, on emerging High-Performance Computing revenue.
Earlier on January 16, BTIG reaffirmed its Buy rating and $28 price target on Riot Platforms, Inc. (NASDAQ:RIOT). In its analysis, the firm highlighted opportunities arising from data center expansion. What’s even more noteworthy is the company’s Corsicana location, which the firm believes is among the most appealing large-scale data center locations in the United States.
Riot Platforms, Inc. (NASDAQ:RIOT) is a Colorado-based Bitcoin mining company operating two segments: Bitcoin Mining and Engineering. Incorporated in 2000, the company offers facilities in Texas and mining sites in Kentucky.
2. Coupang, Inc. (NYSE:CPNG)
Upside Potential as of January 21, 2026: 71.74%
Number of Hedge Fund Holders: 83
On January 16, Peter Milliken from Deutsche Bank upgraded Coupang, Inc. (NYSE:CPNG) to Buy from Hold, while setting a price target of $25, according to TheFly. Slightly above the lowest 1-year price target of $22, the firm’s price reflects an upside potential of 23%.
A day earlier, BofA Securities trimmed the price target on Coupang, Inc. (NYSE:CPNG) to $32.00 from $38.00 and maintained a Buy rating on the company. The firm attributed this downward revision to a stringent regulatory environment stemming from a personal-data leak incident, with the investigation still ongoing.
Although Coupang, Inc. (NYSE:CPNG) has struggled with other issues, such as fair trade, labor, and tax concerns, that are currently being examined by regulators, the firm highlights that this isn’t something new, adding that the Korean industry has persistently seen regulation as a risk. That said, BofA Securities believes these ongoing investigations could weigh down investor sentiment and create uncertainties for the company.
Coupang, Inc. (NYSE:CPNG) is a Washington-based company that operates a retail business through its mobile applications and websites in South Korea and internationally. Founded in 2010, the company operates in two segments: Product Commerce and Developing Offerings.
1. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Upside Potential as of January 21, 2026: 154.16%
Number of Hedge Fund Holders: 58
On January 20, TheFly reported that H.C. Wainwright lifted the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $120 from $110 and maintained a Buy rating. The new target suggests an upside potential of 177%.
This positive outlook comes right after Soleno Therapeutics, Inc. (NASDAQ:SLNO) announced its preliminary 4Q25 and full-year 2025 financial results for its VYKAT XR offering, in which the company’s preliminary unaudited full-year 2025 net revenue surpassed the firm’s estimates by $16.5 million to $18.5 million. That said, preliminary fourth-quarter 2025 net revenue is anticipated to be between $90 and $92 million. This is substantially higher than the analyst’s guidance of $73.8 million.
On the same day, Derek Archila from Wells Fargo also increased the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $114 from $106 and reaffirmed an Overweight rating, according to TheFly. While highlighting the fourth-quarter Vykat extended-release revenues beat, the firm believes FY26 forecasts are reasonable and notes that the shares are trading at a significant discount considering its free cash flow profile.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a California-based clinical-stage biopharmaceutical company specializing in novel therapeutics to treat serious illnesses. Founded in 1999, the company provides Diazoxide Choline Extended-Release tablets.
While we acknowledge the potential of SLNO 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 SLNO and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
