When looking for new stocks to invest in, it can be hard to find a good balance of affordability and growth potential. In this article, we’ll talk about some of the best stocks under $50 but over $20. These stocks typically have more stability and long-term potential than a penny stock, but are more affordable than some of the biggest names on the stock market.
Looking for something a bit more affordable? Don’t worry – we also have recommendations for the best stocks under $20, best stocks under $10, best stocks under $5, and best stocks under $1. No matter what you are looking for, there are investment options on the market for every price point.
When looking at stocks under $50, you’ll want to look at their most recent financial data as well as their recent stock performance. If their revenue and earnings per share numbers have been beating analyst expectations, that is often an indication that the stock price will follow.
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Best Stocks Under $50 To Buy
Slack Technologies (NYSE: WORK)
Slack is a software company that helps teams communicate online. Their product offers direct messaging and group chat rooms, and it integrates with many other popular productivity tools. They were founded in 2009, but only went public in 2019.
This product has been particularly helpful for people working from home during the COVID-19 pandemic. With Slack, teams can communicate efficiently, even while working from home.
Slack stock went up at the beginning of December 2020 when Salesforce announced a deal to acquire them. However, it will be at least a year until that sale goes through.
This means investors have to use a unique strategy when investing in Slack. When the deal goes through, Slack shareholders will receive a fixed cash payout as well as a portion of Salesforce stock.
There are a few different ways to approach this. The first is to invest in Slack for its short-term growth and sell before the acquisition.
Slack has had strong earnings reports over the last year. They’ve also had a very strong customer retention rate, which is an important factor to consider during tough economic times like these.
You could also plan on keeping the stock when Salesforce absorbs it. Salesforce is another platform that has been performing well during the pandemic. Their shares are currently much more expensive than Slack’s. This means that shareholders would likely profit if the price of both stocks were to stay roughly the same.
Salesforce stock has been more volatile than Slack’s, which could be cause for concern among some investors. However, Salesforce is already a market leader and adding Slack to their suite of products could help them grow even more.
Right now, Slack seems like an affordable growth stock to add to your portfolio for the next year. We’re curious to see how the merger will affect both companies involved.
MGM Resorts (NYSE: MGM)
Given the global COVID-19 shutdowns, it may seem counterintuitive to invest in this resort chain. However, they’re poised to make a comeback, and now could be the right time to get in on the action.
MGM currently has resorts in Las Vegas, Nevada and Macao, China. They also have smaller properties all over the United States.
Both of these cities are starting to reopen after a year of rolling shutdowns. Many people are starting to get vaccinated for COVID-19, which should help slow the spread of the disease so that non-essential businesses can open.
MGM stock has slowly recovered from the stock market crash in March. While they have still lost money, they haven’t been hit as hard as some of their competitors.
They also haven’t been resting on their laurels either – they’ve also been moving into the lucrative online gambling business to keep their revenue up. They launched their BetMGM service with Entain, which is currently operational in nine states.
While this online service is still in its early stages, it has plenty of room to grow. As other states and countries loosen their online gambling laws, BetMGM can expand their customer base.
Since MGM stock has slowly been going up, now could be the right time to buy. They are currently trading for approximately $36 per share. This is a good long-term stock to add to your portfolio as the world recovers from the pandemic.
Teck Resources (NYSE: TECK)
Teck is a Canadian mining company based in Vancouver. They focus on coal, copper, and zinc, but mine for other metals as well. They have operations in Canada, the US, Peru, and Chile.
This stock is currently trading for approximately $23 per share. Their stock price recently shot up after a promising earnings report.
Expert investors are now predicting that Teck’s earnings will continue to go up dramatically over the next year. They also would likely become profitable if they hit this financial target.
As with many other mining stocks, Teck Resources saw a drop in demand for their products during the beginning of the pandemic. However, now that the economy is improving, demand for Teck’s products has gone up.
Teck Resources stock actually went up earlier in the fall as demand went up in China reopened. Now that countries in the US and Europe are distributing the COVID-19 vaccine, manufacturing will likely increase as well.
Top Stocks Under 50 Dollars
Blink Charging (NASDAQ: BLNK)
Savvy investors have their eyes on the electric vehicle market right now. With the threat of global climate change looming, many people have been looking for more eco-friendly modes of transportation. While electric vehicles were once considered a luxury item, they are quickly becoming mainstream.
Blink Charging is a stock that can really benefit from a growing electric vehicle market. Blink develops the charging stations and batteries that electric vehicles rely on. They make chargers for private use at homes and businesses, but there are also over 23,000 charging stations around the world.
This stock has plenty of momentum right now. It had a breakout moment at the end of November 2020, although its price has been fluctuating since then. Now is a great time to buy, before they break out of the $50 range.
MaxLinear Inc. (NYSE: MXL)
Electronic components are in high demand right now, as products like smartphones, tablets, and laptops are now considered essentials. There are plenty of microchip companies on the market, but MaxLinear is one that offers plenty of value.
MaxLinear makes broadband semiconductor chips. These chips make it so devices can download and stream video. Many people have been turning to streaming services to stay entertained during the pandemic. There’s plenty of demand for electronic devices with video capabilities.
They also make chips for broadband internet devices. This sector has been particularly successful over the past year, as people have been staying home and relying on their personal mobile devices more than usual.
This stock’s price has been steadily going up over the last year with only a few dips. If they can keep demand up among their biggest clients, MaxLinear has the potential to push higher. Investors will want to keep an eye on their earnings reports when investing in this company.
Best Dividend Stocks Under $50
Cisco Systems (NASDAQ: CSCO)
Cisco Systems is a tech company based in the Silicon Valley. Historically, they have focused on network hardware and telecommunications services, but recently they have been moving into software products as well.
Cisco has a long history of success, as they have been in business since 1984. As a company, they were one of the first to use a LAN network to connect multiple computers in the same building.
While their earnings have declined year over year in 2020, they have continued to beat market estimates. They’ve managed to keep a stable customer base and keep their expenses in check as well.
Cisco’s long history of success in the tech industry indicates that they can likely weather through the current economic storm. When compared with their competitors, they haven’t been hit as hard during the pandemic.
Cisco’s dividend is also a big reason to keep this stock in your portfolio. They currently pay a dividend of 3.24 percent, which means they’re a great choice for anyone interested in income investing.
Top Technology Stocks Under $50
Ping Identity (NYSE: PING)
Ping Identity is a cybersecurity company that makes identity protection products for both consumers and companies. Some of their products include multifactor authentication and cloud security products.
The company has a significant market share in the security industry. They have several large enterprise clients, and they create custom identity security systems to meet their needs.
These identity products and services have been particularly important during the pandemic. Companies needed to find a way for employees to access secure data from home. This has been a boon to Ping Identity, who hit all-time highs this year.
This stock has fluctuated over the last year. After hitting a low point in March, they rebounded, but the price started to drop in the fall before climbing back up again. They are currently trading for approximately $35 per share.
The company is due to announce their quarterly earnings report at the end of February. Some market experts are predicting a drop in sales numbers this quarter. This could dramatically affect their stock price moving forward.
Investors may want to consider waiting until these financial reports come out before they buy. Ping Identity is a stock with plenty of growth potential, but timing is essential when adding any investment to your portfolio.
Biotech Stocks Under $50
Sanofi (NASDAQ: SNY)
Sanofi is one of the largest prescription drug companies in the world. They are based in France and have been in business since 1973. Over the years, they have acquired many smaller pharmaceutical and biotech companies.
This company has a large portfolio of products, which include everything from cancer and MS treatments to vaccines to consumer healthcare items. They have plenty of new projects in development as well. This level of business diversity is very good for their long-term financial stability.
Sanofi also appointed a new CEO in late 2019. In the year and a half since this leadership change, the company has taken steps to increase their acquisitions and partnerships.
They’re also taking steps to streamline their business for future financial success. They recently spun off all of their active pharmaceutical ingredient manufacturing into a separate company. This will allow them to fully focus on developing new drugs.
Sanofi is one of many stocks under $50 that have been fluctuating in recent months. However, that doesn’t mean you should rule them out.
Right now, they are trading at approximately $46 per share. With successful drug sales and positive restructuring of the company, investors may see strong returns later this year.
Another reason to keep an eye on Sanofi is their dividend. They currently have a dividend yield of 3.64 percent, which means you can use this stock as part of an income investing strategy.
Best Stocks Under $50: Final Thoughts
Stocks in the range of $20 and $50 are a great option for investors on a budget. Investing in these stocks is much less risky than cheaper penny stocks, but buying a share still won’t break the bank.
Keep an eye on the stocks under $50 we listed in this article. Many could break out of the $50 range soon. This means you’ll want to add them to your portfolio while prices are still low.
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