In this article, we will look at the 13 Cheap Stocks Under $50 to Buy Now.
On July 15, Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist, appeared on CNBC’s ‘Squawk Box’ to talk about market outlooks and the effects Trump’s tariffs may have on the market.
Discussing tariffs, he noted that the market is not experiencing the reciprocal tariffs it saw in abundance in April, which is a positive sign, as they would have been “extremely damaging.” He reasoned that President Trump is showing flexibility in this domain, and anybody who comes to the table is likely to get a deal.
READ ALSO: 12 Oversold NASDAQ Stocks to Buy Now and 10 Undervalued Medical Device Stocks to Buy Now.
Siegel further stated that while the “drama” unfolding at the Fed is unprecedented, he believes that firms will face higher prices. However, since necessity is the mother of invention, they will likely try to find a way around it.
With these trends in view, let’s look at the 13 cheap stocks under $50 to buy now.
An asset manager studying data on a stock market monitor to make informed investment decisions.
Our Methodology
We used Finviz to compile a list of top stocks with a forward P/E below 15 and stock price under $50. We then selected the top 13 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Cheap Stocks Under $50 to Buy Now
13. GSK plc (NYSE:GSK)
Stock Price: $37.82
Forward P/E: 8.78
Number of Hedge Fund Holders: 32
GSK plc (NYSE:GSK) is one of the best cheap stocks under $50 to buy now. On July 15, BofA analyst Sachin Jain maintained a Sell rating on GSK plc (NYSE:GSK) and set a price target of p1,510.00.
The analyst based the rating on factors related to the company’s Blenrep drug, stating that the FDA briefing documents highlighted considerable concerns regarding its ocular toxicity and dosing.
Issues associated with these factors are central, and the FDA questioned if suitable dosages have been identified, given the poor tolerability seen in trials.
The analyst further reasoned that the high ocular toxicity rates, including keratopathy and visual acuity changes, are especially alarming, as a majority of the patients experienced severe and recurrent ocular events.
Jain also noted the limited applicability of trial results to the US markets because of the use of a comparator arm not approved in the US and low enrollment of US patients, resulting in an uncertain risk-reward balance for the drug and warranting a cautious stance.
Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global healthcare and biopharmaceutical corporation that develops and distributes a range of vaccines, medications, and consumer health items.
It is based in the United Kingdom and has over 20 vaccines in its portfolio, positioning it as a leader in vaccines, immunology, and respiratory therapies. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer in addition to other drugs.
12. Energy Transfer LP (NYSE:ET)
Stock Price: $17.59
Forward P/E: 13.1
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the best cheap stocks under $50 to buy now. On July 7, Energy Transfer LP (NYSE:ET) was initiated with a new Buy rating by TD Cowen analyst Jason Gabelman, setting a price target of $22.
The analyst based the rating on the company’s considerable involvement in the natural gas sector and its diversified operations.
He reasoned that Energy Transfer LP (NYSE:ET) generates a considerable portion of its earnings from natural gas, which positions it well to capitalize on sector growth. The firm considers the company’s current valuation to be attractive, despite some accounting complexities, due to its publicly traded subsidiaries.
Gabelman further stated that Energy Transfer LP (NYSE:ET) has a strong presence in key natural gas basins in the US, which increases its potential and connectivity to benefit from rising natural gas demand.
He expects Energy Transfer LP (NYSE:ET) to experience EBITDA growth as well, supported by projects such as the Hugh Brinson pipeline. Future projects may also drive growth for the company, including data center-related supply initiatives and Lake Charles LNG.
Energy Transfer LP (NYSE:ET) offers natural gas pipeline transmission and transportation services. The company operates through the following segments: Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other.
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