5 Best Stocks to Buy Under $50

4. GoPro, Inc. (NASDAQ:GPRO)

Stock Price as of May 27: $6.99

Number of Hedge Fund Holders: 26

GoPro, Inc. (NASDAQ:GPRO) is a San Mateo, California-based corporation involved in the production and distribution of action cameras and has now further diversified into mobile applications and video-editing software.

The company realized that its products do not have a high replacement cycle like smartphones, so it has expanded its product portfolio by offering high-end cameras and budget-friendly options as well. GoPro, Inc. (NASDAQ:GPRO) has also introduced a $50/year subscription service that provides a discount on GoPro products and access to the cloud to save videos. The company has transitioned more towards e-commerce sales and has reduced its reliance on channel partners and resellers to generate sales.

GoPro, Inc. (NASDAQ:GPRO) is expected to benefit from higher traveling activity as borders across the world are reopening after an ease in restrictions following the COVID-19 pandemic. The company has been able to get its gross margin to the low 40s and is currently trading at a forward EV multiple of 6x only, which makes it an attractive value play. Furthermore, GoPro, Inc. (NASDAQ:GPRO) has authorized a share buyback plan of $100 million.

As of Q1 2022, 26 hedge funds held a stake in GoPro, Inc. (NASDAQ:GPRO).