In this article, we will look at the 14 Best Undervalued Stocks to Buy Under $50.
On November 5, Torsten Slok, Apollo Global Management’s chief economist, appeared on CNBC’s ‘Power Lunch’ to talk about reading the current market’s concentration.
He stated that since the beginning of the year, the market has been very bifurcated, not just in terms of performance but also in terms of earnings and profit margins. The 2025 EPS consensus estimates for the Mag 7 have gone up since earlier this year, but the same have been going down for the S&P 493, with the chart for 2026 showing a similar picture.
This, according to Slok, shows that the market has come to the conclusion that in saying that earnings have been revised higher for the S&P 500, the primary contributor is the Mag 7 stock group, and not the S&P 493. Profit margins are following a similar trend, having been revised up for the Mag 7, and down for S&P 493.
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He further stated that the Mag 7 group has been growing in size, making up more than 40% of the total market cap in the S&P 500, which is an unusually high concentration.
The key issue with investors right now, according to Slok, is that one is not being diversified in the S&P 500 if one puts money into the index today with a focus only on the Mag 7 because they are in high concentration. This is what makes the distinction between the Mag 7 and S&P 493 so critical, especially when it comes to earnings revisions.
With these trends in view, let’s look at the best undervalued stocks to buy under $50.
Our Methodology
We used Finviz to compile a list of the best stocks under $50 with a forward P/E below 15. We selected the top 14 with the highest number of hedge fund holders as of Q2 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 November 7.
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).
14 Best Undervalued Stocks to Buy Under $50
14. Banco Santander, S.A. (NYSE:SAN)
Stock Price: $10.29
Forward P/E: 10.40
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the best undervalued stocks to buy under $50. Banco Santander, S.A. (NYSE:SAN) received a rating update from RBC Capital on November 3, with the firm lifting the price target to EUR 8.50 from EUR 7.50 while keeping a Sector Perform rating on the shares.
The rating followed Banco Santander, S.A.’s (NYSE:SAN) release of results for the nine months of 2025, with revenue stable at €46.3 billion and record net fee income, up 4% year-over-year. Operating expenses, however, dropped by 1%, with management attributing the decrease to the bank’s pivot towards a more digital, simpler, and globally integrated model.
Banco Santander, S.A. (NYSE:SAN) further reported €10.337 billion in attributable profit for the first nine months of 2025, up 11% from the same period last year and marking a record performance for the period for the company. Attributable profit for fiscal Q3 2025 also achieved a new record of €3.504 billion, marking an 8% year-on-year growth and a sixth consecutive record quarter.
In addition, its customer base experienced the addition of more than seven million new customers over the past 12 months, bringing the total number to 178 million. These strong results were attributed to record levels of fee income and further efficiency gains, solid performance in net interest income, and continued improvement in credit quality.
Banco Santander (NYSE:SAN) is a Spain-based company that operates as a retail and commercial bank. Its segments are scattered across Continental Europe, the United Kingdom, Latin America, and the United States.
13. Equinor ASA (NYSE:EQNR)
Stock Price: $24.04
Forward P/E: 8.68
Number of Hedge Fund Holders: 19
Equinor ASA (NYSE:EQNR) is one of the best undervalued stocks to buy under $50. On October 31, TD Cowen analyst Jason Gabelman reiterated a Hold rating on Equinor ASA (NYSE:EQNR) and set a $22 price target.
Separately, Equinor ASA (NYSE:EQNR) reported on November 9 the awarding of new framework agreements for insulation, scaffolding, and surface treatment (ISS) at its onshore plants in Norway, signed with the the joint venture Beerenberg Services AS / Linjebygg AS, KAEFER Energy AS, Bilfinger ISP Offshore Norway AS, and StS-ISONOR AS.
Management reported that this collectively represents over a thousand full-time equivalents, with a duration of up to eight years; four years firm with options for extra two-year extensions. The agreements have an estimated value of around NOK 17 billion.
Equinor ASA (NYSE:EQNR) further reported that with the current agreements expiring at year end, the new ones would be formally put into effect on January 1, 2026. The company expects a “gradual transition” between the new and existing suppliers to ensure operational continuity.
Equinor ASA (NYSE:EQNR) explores, transports, produces, refines, and markets petroleum and petroleum-derived products. The company’s operations are divided into the following segments: Exploration and Production Norway, Exploration and Production International, Exploration and Production USA, Marketing, Midstream, and Processing, Renewables, and Other.
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