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.
11. Suncor Energy Inc. (NYSE:SU)
Stock Price: $39.42
Forward P/E: 13.45
Number of Hedge Fund Holders: 44
Suncor Energy Inc. (NYSE:SU) is one of the best cheap stocks under $50 to buy now. On July 11, Scotiabank raised the firm’s price target on Suncor Energy Inc. (NYSE:SU) to C$60 from C$57, keeping a Sector Perform rating on the shares.
The analyst told investors that the firm is updating its price targets on the E&P stocks it has in coverage, stating that it anticipates weak global oil prices to affect Canadian oil benchmarks in 2025 and 2026.
Suncor Energy Inc. (NYSE:SU) is an integrated energy company that develops petroleum resource basins. Its operations are divided into the following segments: Oil Sands, Exploration and Production, Refining and Marketing, and Corporate and Eliminations.
10. BP p.l.c. (NYSE:BP)
Stock Price: $31.86
Forward P/E: 12.89
Number of Hedge Fund Holders: 51
BP p.l.c. (NYSE:BP) is one of the best cheap stocks under $50 to buy now. On July 16, RBC Capital analyst Biraj Borkhataria maintained a Hold rating on BP p.l.c. (NYSE:BP) and set a price target of £4.50.
BP p.l.c. (NYSE:BP) reported $1.4 billion in underlying replacement cost profit in fiscal Q1 2025, compared to $1.2 billion in the previous quarter.
Operating cash flow for the quarter reached $2.8 billion, including a working capital build of $3.4 billion and around $4.6 billion lower than the previous quarter.
The drop reflects the effects of seasonal inventory and the timing of a number of payments, including payments related to low-carbon assets held for sale and annual bonus payments.
BP p.l.c. (NYSE:BP) also reported $27.0 billion net debt at the end of fiscal Q1 2025, driven primarily by lower operating cash flow.
Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.
9. Canadian Natural Resources Limited (NYSE:CNQ)
Stock Price: $31.29
Forward P/E: 12.96
Number of Hedge Fund Holders: 52
Canadian Natural Resources Limited (NYSE:CNQ) is one of the best cheap stocks under $50 to buy now. On July 14, BMO Capital analyst Randy Ollenberger maintained a Buy rating on Canadian Natural Resources Limited (NYSE:CNQ) and set a price target of C$56.00.
The analyst based the rating on the company’s financial resilience and operational excellence, stating that its notable efficiency and scale reflect its potential to maintain cost-effectiveness and industry-leading reliability. This holds especially true at the Albian Sands.
Ollenberger reasoned that Canadian Natural Resources Limited’s (NYSE:CNQ) strategic asset management and considerable reserves further support this operational expertise, lending it a competitive market position.
Canadian Natural Resources Limited (NYSE:CNQ) is an oil and natural gas production company that explores, develops, markets, and produces natural gas and crude oil. Its operations are divided into the following segments: Oil Sands Mining & Upgrading, Midstream & Refining, and Exploration & Production.
8. Truist Financial Corporation (NYSE:TFC)
Stock Price: $44.37
Forward P/E: 11.39
Number of Hedge Fund Holders: 57
Truist Financial Corporation (NYSE:TFC) is one of the best cheap stocks under $50 to buy now. On July 13, BofA analyst Ebrahim Poonawala raised the firm’s price target on Truist Financial Corporation (NYSE:TFC) to $50 from $46, keeping a Buy rating on the shares.
The firm told investors that it adjusted its regional bank price targets as part of a preview of the fiscal Q2 2025 earnings season.
The analyst further said in a research note that several factors are acting as catalysts for the stocks, including accelerated loan growth, an absence of interest rate cuts delaying growth rebound and yet “resilient” earnings emerging, and investment banking activity.
Truist Financial Corporation (NYSE:TFC) is a financial holding company that provides banking services to businesses, individuals, and municipalities. The company operates through the following segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Other, Treasury and Corporate.
7. US Bancorp (NYSE:USB)
Stock Price: $45.69
Forward P/E: 10.57
Number of Hedge Fund Holders: 63
US Bancorp (NYSE:USB) is one of the best cheap stocks under $50 to buy now. On July 13, BofA raised the firm’s price target on US Bancorp (NYSE:USB) to $54 from $49, keeping a Buy rating on the shares.
The firm told investors that it adjusted its price targets on regional banks as part of a preview of the Q2 earnings season.
On June 18, US Bancorp’s (NYSE:USB) Board of Directors announced a regular quarterly dividend of $0.50 per common share to stockholders of record at the close of business on June 30, 2025. The annual dividend at this quarterly dividend rate comes up to $2.00 per common share.
US Bancorp (NYSE:USB) is a bank holding company that offers financial services including cash management, lending and depository services, foreign exchange, and trust and investment management.
It also offers refinance, mortgage, boat, and RV loans, credit card services, credit lines, auto, merchant, checking, and savings accounts, ATM processing, debit cards, insurance, and more.
6. Verizon Communications Inc. (NYSE:VZ)
Stock Price: $41.26
Forward P/E: 8.84
Number of Hedge Fund Holders: 65
Verizon Communications Inc. (NYSE:VZ) is one of the best cheap stocks under $50 to buy now. In a report released on July 7, Michael Elias from TD Cowen maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ) and set a price target of $50.00.
Verizon Communications Inc. (NYSE:VZ) reported an EPS of $1.15 in fiscal Q1 2025 compared to $1.09 in the same quarter last year. Adjusted EPS for the quarter, excluding special items, also increased, rising from $1.15 in fiscal Q1 2024 to $1.19 in fiscal Q1 2025.
Total operating revenue for the quarter rose 1.5% to $33.5 billion, while cash flow from operations rose from $7.1 billion in Q1 2024 to $7.8 billion in Q1 2025.
Verizon Communications Inc. (NYSE:VZ) also reported broadband net additions of 339,000, along with industry-leading $20.8 billion in total wireless service revenue in fiscal Q1 2025.
Verizon Communications Inc. (NYSE:VZ) provides communications, information, and entertainment services and products. Its operations are divided into the Consumer and Business segments.
The Consumer segment manages consumer-focused wireline and wireless communication products and services. In contrast, the Business segment focuses on services and products such as data, FWA broadband, video and conference services, corporate networking solutions, and more.
5. Schlumberger Limited (NYSE:SLB)
Stock Price: $35.07
Forward P/E: 11.42
Number of Hedge Fund Holders: 68
Schlumberger Limited (NYSE:SLB) is one of the best cheap stocks under $50 to buy now. In a report released on July 16, Stephen Gengaro from Stifel Nicolaus maintained a Buy rating on Schlumberger Limited (NYSE:SLB), lowering the price target on the stock to $52 from $54.
The analyst told investors in a research note that oil service stocks have underperformed the S&P 500 in 2025, with the catalysts for the industry being majorly negative.
The firm believes that as the market enters the fiscal Q2 2025 earnings season, shares will range-bound until estimates stop dropping.
Schlumberger Limited (NYSE:SLB) provides energy technology and operates through the following business segments: Digital and Integration, Reservoir Performance, Well Construction, and Production Systems.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Stock Price: $46.43
Forward P/E: 7.15
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best cheap stocks under $50 to buy now. In a report released on July 13, Terence Flynn from Morgan Stanley maintained a Sell rating on Bristol-Myers Squibb Company (NYSE:BMY), setting a price target of $34.00.
The analyst based the rating on the company’s current market standing and future prospects, reasoning that a key point of concern is Bristol-Myers Squibb Company’s (NYSE:BMY) reliance on Cobenfy.
Cobenfy is an approved drug for schizophrenia and is now being tested for Alzheimer’s Disease Psychosis (ADP). However, the analyst stated that while ADP has considerable potential market with no approved therapies available, it is uncertain whether Cobenfy will succeed in the domain, as it depends on the results of the ongoing Phase 3 trials.
Flynn also reasoned that the initial uptake for the drug has been slower than expected for the treatment of schizophrenia, which may falter investor confidence in Cobenfy’s potential to drive positive future revenue growth.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
3. AT&T Inc. (NYSE:T)
Stock Price: $27.02
Forward P/E: 13.06
Number of Hedge Fund Holders: 87
AT&T Inc. (NYSE:T) is one of the best cheap stocks under $50 to buy now. On July 16, Morgan Stanley analyst Benjamin Swinburne raised the firm’s price target on AT&T Inc. (NYSE:T) to $32 from $31, keeping an Overweight rating on the shares.
AT&T Inc. (NYSE:T) announced on June 10 that it surpassed more than 30 million fiber locations, edging halfway closer to its objective of reaching around 60 million businesses and homes across America.
The company is focused on expanding its fiber offerings in a number of ways, which includes expanding its commercial open-access agreements, organic in-region fiber network, public-private partnerships, Gigapower joint venture, and its plans to acquire all of Lumen’s Mass Markets fiber business, encompassing over 4 million fiber locations across 11 states and about 1 million fiber customers.
AT&T Inc. (NYSE:T) provides telecommunications and technology services and operates through the Communications and Latin America segments. Its Communications segment offers wireline telecom, wireless, and broadband services in the US and globally, while the Latin America segment manages services in Mexico.
2. Pfizer Inc. (NYSE:PFE)
Stock Price: $24.61
Forward P/E: 8.2
Number of Hedge Fund Holders: 99
Pfizer Inc. (NYSE:PFE) is one of the best cheap stocks under $50 to buy now. On July 10, Morgan Stanley analyst Terrence Flynn reiterated a hold rating on Pfizer Inc. (NYSE:PFE), setting a $32 price target.
The company declared a $0.43 fiscal Q3 2025 dividend on June 25 on its common stock, payable September 2 to holders of record at the close of business on July 25. The fiscal Q3 2025 cash dividend marks Pfizer Inc.’s (NYSE:PFE) 347th consecutive quarterly dividend.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
1. Bank of America Corporation (NYSE:BAC)
Stock Price: $46.15
Forward P/E: 12.77
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC) is one of the best cheap stocks under $50 to buy now. Bank of America Corporation (NYSE:BAC) reported its fiscal Q2 2025 earnings report on July 16, stating that the company expects to deliver operating leverage in the second half of 2025.
It also said that it is continuing to see “solid consumer” and good organic client activity in the quarter as clients see clarity amid tariff changes.
Barclays stated that it sees Bank of America Corporation’s (NYSE:BAC) fiscal Q2 2025 report as positive for Mastercard and Visa, as well as merchant processors. The firm told investors in a research note that the company’s card volumes suggest a resilient consumer spend backdrop.
Bank of America Corporation (NYSE:BAC) reported $7.1 billion in net income in fiscal Q2 2025, which translates to $0.89 per diluted share.
Revenue for the quarter reached $26.5 billion, net of interest expense, up 4% and reflecting lower investment banking fees, higher net interest income (NII), sales and trading revenue, and asset management fees.
Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments.
While we acknowledge the potential of BAC 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 BAC and that has 100x upside potential, check out our report about this cheapest AI stock.
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