In this article, we will look at the 5 best stocks to buy under $50. If you want to explore similar stocks, you can also take a look at 12 Best Stocks Under $50.
5. Murphy Oil Corporation (NYSE:MUR)
Share Price as of October 21: $48.42
Number of Hedge Fund Holders: 27
Murphy Oil Corporation (NYSE:MUR) is an international oil and gas company with upstream operations in the United States, Canada, Malaysia, and the United Kingdom. The company’s downstream operations include refining and marketing operations in the United States, Canada, the United Kingdom, and Ireland. The company has a strong cash position and a healthy balance sheet. Murphy Oil Corporation (NYSE:MUR) has free cash flows of $870.6 million and is trading at a PE multiple of 14x, as of October 21.
This October, Piper Sandler analyst Mark Lear raised his price target on Murphy Oil Corporation (NYSE:MUR) to $62 from $46 and maintained an Overweight rating on the shares. On October 19, Jefferies analyst Lloyd Byrne took coverage of Murphy Oil Corporation (NYSE:MUR) with a Hold rating and a $43 price target.
At the end of Q2 2022, 27 hedge funds were long Murphy Oil Corporation (NYSE:MUR) and held stakes worth $189.3 million in the company. This is compared to 20 positions in the previous quarter with stakes worth $167 million. The hedge fund sentiment for the stock is positive.
As of June 30, Encompass Capital Advisors is the largest investor in Murphy Oil Corporation (NYSE:MUR) and has stakes worth $31 million in the company.
4. Vale S.A. (NYSE:VALE)
Share Price as of October 21: $14.33
Number of Hedge Fund Holders: 27
Vale S.A. (NYSE:VALE) is a leading global mining company with a diversified portfolio of mineral assets, including iron ore, nickel, copper, thermal and coking coal, manganese, fertilizer, and kaolin. The company has a long history of delivering shareholder value and is well-positioned to continue doing so in the future as it benefits from continued global demand for its mineral products, particularly from China. The stock is currently trading at bargain levels and is presenting an attractive buying opportunity for investors. As of October 21, Vale S.A. (NYSE:VALE) has a trailing twelve-month PE ratio of 3x and is offering a forward dividend yield of 9.85%. The company has free cash flows of R$11.72 billion and is ranked high among the best stocks to buy now.
This October, Deutsche Bank analyst Liam Fitzpatrick revised his price target on Vale S.A. (NYSE:VALE) to $19 from $20 and reiterated a Hold rating on the shares.
At the close of Q2 2022, 27 hedge funds held stakes in Vale S.A. (NYSE:VALE). The total value of these stakes amounted to $1.78 billion. As of June 30, Fisher Asset Management is the most prominent investor in Vale S.A. (NYSE:VALE) and has stakes worth $324.5 million in the company.
Here is what GMO LLC had to say about Vale S.A. (NYSE:VALE) in its first-quarter 2022 investor letter:
“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. 4 What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”
3. Hormel Foods Corporation (NYSE:HRL)
Share Price as of October 21: $44.97
Number of Hedge Fund Holders: 27
Hormel Foods Corporation (NYSE:HRL) is a diversified food company with a strong track record of delivering shareholder value. The company’s brands are well-known and trusted by consumers, and its products are sold around the world. The company has a strong balance sheet and a history of paying dividends. Hormel Foods Corporation (NYSE:HRL) is well-positioned to continue growing its business and delivering value to shareholders. The company is offering a forward dividend yield of 2.31%, as of October 21, and has free cash flows of $1.04 billion. Hormel Foods Corporation (NYSE:HRL) is ranked among the best stocks to buy now.
This September, Piper Sandler analyst Michael Lavery revised his price target on Hormel Foods Corporation (NYSE:HRL) to $47 from $48 and maintained a Neutral rating on the shares. On September 22, Argus analyst John Staszak adjusted his price target on Hormel Foods Corporation (NYSE:HRL) to $53 from $54 and reiterated a Buy rating on the shares.
At the end of Q2 2022, 27 hedge funds were bullish on Hormel Foods Corporation (NYSE:HRL) and held stakes worth $434.5 million in the company. Of those, Renaissance Technologies was the largest shareholder in the company and held stakes worth $140.8 million.
2. Trex Company, Inc. (NYSE:TREX)
Share Price as of October 21: $44.02
Number of Hedge Fund Holders: 36
Trex Company, Inc. (NYSE:TREX) is a leading manufacturer and distributor of wood-alternative decking and railing products. The company has a strong competitive advantage due to its scale, brand recognition, and product innovation. The company’s products are eco-friendly and require less maintenance than traditional wood products, which is a key selling point for customers. Trex Company, Inc. (NYSE:TREX) is well-positioned to continue growing its market share in the U.S. and internationally. Moreover, the company has a strong balance sheet and generates significant cash flow. The company has free cash flows of $335 million and is one of the best stocks to buy now.
On October 20, Deutsche Bank analyst Joe Ahlersmeyer revised his price target on Trex Company, Inc. (NYSE:TREX) to $80 from $87 and reiterated a Buy rating on the shares.
At the close of Q2 2022, 36 hedge funds were eager on Trex Company, Inc. (NYSE:TREX) and held stakes worth $201 million in the company. Of those, Montanaro Asset Management was the largest investor in the company and held stakes worth $30.7 million.
1. FirstEnergy Corp. (NYSE:FE)
Share Price as of October 21: $36.41
Number of Hedge Fund Holders: 42
FirstEnergy Corp. (NYSE:FE) is a leading diversified utility company with operations in the Midwest and Mid-Atlantic regions of the United States. The company has a long history of paying dividends and is currently offering a forward dividend yield of 4.4%, as of October 21, and is also trading at a PE multiple of 15x. FirstEnergy Corp. (NYSE:FE) is one of the best undervalued and dividend-paying stocks to buy now.
This September, Morgan Stanley analyst Stephen Byrd reiterated an Overweight rating and his $53 price target on FirstEnergy Corp. (NYSE:FE).
At the end of Q2 2022, 42 hedge funds disclosed ownership of stakes in FirstEnergy Corp. (NYSE:FE). The total value of these stakes amounted to $1.78 billion. This is compared to 33 positions in the preceding quarter with stakes worth $1.88 billion. As of June 30, Icahn Capital LP is the largest investor in FirstEnergy Corp. (NYSE:FE) and has stakes worth $728 million.
You can also take a look at 10 Best Counter Cyclical Stocks To Buy and 12 Best Emerging Stocks To Buy Now.
