15 Best Affordable Stocks To Buy Now
In this article, we discuss the 15 best affordable stocks to buy now. You can skip our detailed analysis of the current stock market investment trends, and go directly to read 5 Best Affordable Stocks To Buy Now.
On Friday, January 19, the S&P 500 achieved a historic milestone by closing at an all-time high, as investors enthusiastically reentered the equity market after a brief stumble at the beginning of 2024. The broad market index recorded a 1.23% increase, settling at 4,839.81, surpassing both the prior intraday and closing highs set in January 2022. Simultaneously, the Dow Jones Industrial Average, which had established its own record at the close of the previous year, surged by 395.19 points or 1.05%, concluding at 37,863.80. The Nasdaq Composite saw a 1.70% uptick, reaching 15,310.97, while the more tech-focused Nasdaq-100 gained 1.95%, also attaining a new record high. Notably, all three major averages are now in positive territory for the year 2024, with the 30-stock Dow turning green during Friday's robust rally.
In addition, traders are now betting that the Federal Reserve will delay easing its policy until May, marking the conclusion of a week characterized by robust economic data and statements from central bankers that eroded confidence in the possibility of earlier interest-rate cuts. On January 19, a key gauge of consumer sentiment reached its highest level in 2-1/2 years, and Chicago Fed President Austan Goolsbee stated that the U.S. central bank would refrain from committing to rate cuts until there is greater certainty regarding inflation aligning with a healthy 2%. Futures contracts tied to the Fed's policy rate declined, indicating approximately a 47% chance of a rate cut by March, down from 55% earlier in the day. Just a week ago, the likelihood of an interest-rate cut in March stood at nearly 80%, reflecting a swifter-than-anticipated decline in inflation.
In such an economic environment, it makes sense for investors to turn to stocks that are both lucrative and affordable to navigate such macroeconomic conditions. While these stocks may not always offer the same level of security as mega-cap firms like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), they present an opportunity for decent short-term returns due to their volatility. Some of the best affordable stocks in this context include Hewlett Packard Enterprise Company (NYSE:HPE), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), among others listed below.
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Our Methodology
For our list of the best affordable stocks to buy, we used stock screeners to shortlist stocks that were trading at a share price of less than $50. The compilation of stocks is derived from their popularity among the 910 hedge funds monitored by Insider Monkey. The following list is organized in ascending order based on the count of hedge funds that held each stock.
Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
15. Teladoc Health, Inc. (NYSE:TDOC)
Share Price as of January 19: $20.32
Number of Hedge Fund Holders: 28
Teladoc Health, Inc. (NYSE:TDOC) is a prominent global telemedicine and virtual healthcare company headquartered in the United States. The company's core services include telehealth, medical opinions, AI and analytics, telehealth devices, and licensable platform services.
In its Q3 financial report, Teladoc Health, Inc. (NYSE:TDOC) disclosed an impressive 8% growth in third-quarter revenue, reaching $660 million. This growth was attributed to robust performance in its chronic condition management business and sustained expansion of its membership base, which now stands at 90 million users. Moreover, the telehealth company managed to reduce its losses during the past quarter, reporting a net loss of $57 million, or $0.35 per share. This marked an improvement compared to the net loss of $73.5 million, or $0.45 per share, in the third quarter of the previous year.
As of the third quarter of 2023, 28 out of the 910 hedge funds tracked by Insider Monkey held a stake in Teladoc Health, Inc. (NYSE:TDOC). Notably, the largest shareholder during this period was ARK Investment Management, which possessed 20.31 million shares valued at $377.59 million.
Similar to Hewlett Packard Enterprise Company (NYSE:HPE), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), Teladoc Health, Inc. (NYSE:TDOC) ranks as one of the best affordable stocks to invest in.
14. Palantir Technologies Inc. (NYSE:PLTR)
Share Price as of January 19: $16.57
Number of Hedge Fund Holders: 31
Palantir Technologies Inc. (NYSE:PLTR) is a software company specializing in the development of data fusion platforms that facilitate both machine-assisted and human-driven data analysis. The company's product platform includes Palantir Gotham, Palantir Apollo, and Palantir Foundry.
In the third quarter, Palantir Technologies Inc. (NYSE:PLTR) surpassed expectations, reporting an adjusted EPS of $0.07, exceeding estimates by $0.01. The revenue for the period experienced a substantial 16.8% year-over-year growth, reaching $558 million and surpassing estimates by $2.08 million. Looking ahead to the fourth quarter, Palantir Technologies Inc. (NYSE:PLTR) anticipates revenue in the range of $599 million to $603 million, surpassing the consensus estimate of $599.26 million.
As of the end of the third quarter of 2023, 31 hedge funds tracked by Insider Monkey held stakes in Palantir Technologies Inc. (NYSE:PLTR). Notably, the largest stakeholder during this period was D E Shaw, with a stake valued at $387.84 million in the company.
13. The Kraft Heinz Company (NASDAQ:KHC)
Share Price as of January 19: $37.25
Number of Hedge Fund Holders: 40
The Kraft Heinz Company (NASDAQ:KHC), commonly known as Kraft Heinz, is an American multinational food corporation that emerged from the merger of Kraft Foods and H.J. Heinz Company. With dual headquarters located in Chicago and Pittsburgh, the company is involved in the manufacturing and distribution of a diverse range of products. Its product portfolio includes items such as cheese, prepared meals, meats, dairy products, condiments, coffee, and various other food items.
During the third quarter of the previous year, 40 hedge funds out of the 910 examined by Insider Monkey maintained holdings in The Kraft Heinz Company (NASDAQ:KHC).
12. The Kroger Co. (NYSE:KR)
Share Price as of January 19: $46.08
Number of Hedge Fund Holders: 41
The Kroger Co. (NYSE:KR), widely known as Kroger, is a prominent American retail corporation that oversees an extensive network of supermarkets and multi-department stores across 35 states in the United States. With a presence in over 2,700 supermarkets and multi-department stores, Kroger holds a significant position in the global food retail industry.
Kroger Co (NYSE:KR)'s third-quarter results revealed adjusted earnings per share (EPS) of $0.95, exceeding expectations by $0.03. The reported revenue amounted to $33.96 billion, surpassing estimates by $60 million.
As of the end of the third quarter of 2023, 41 hedge funds tracked by Insider Monkey held investments in The Kroger Co. (NYSE:KR), representing a slight decline from 43 in the previous quarter. The combined value of these stakes is over $3.13 billion.
11. Ford Motor Company (NYSE:F)
Share Price as of January 19: $11.20
Number of Hedge Fund Holders: 43
Headquartered in Dearborn, Michigan, United States, Ford Motor Company (NYSE:F) stands as an American multinational automobile manufacturer. The company specializes in selling automobiles and commercial vehicles under the Ford brand, while its luxury cars are marketed under the distinguished Lincoln brand.
On November 1, Barclays upgraded the rating of Ford Motor Company (NYSE:F) stock to Overweight and maintained a $14 price target. The firm highlighted the stock's "historically cheap valuation," with analyst Dan Levy suggesting the potential for an attractive upside in the event of a "modest reversal of sharply negative sentiment."
As of Q3 2023, 43 elite hedge funds tracked by Insider Monkey held shares of Ford Motor Company (NYSE:F), with a total valuation of $1.3 billion. Among them, Ken Fisher's Fisher Asset Management emerged as the largest hedge fund shareholder, owning 55.6 million shares valued at $691 million.
10. Hewlett Packard Enterprise Company (NYSE:HPE)
Share Price as of January 19: $15.38
Number of Hedge Fund Holders: 47
The Hewlett Packard Enterprise Company (NYSE:HPE) is a multinational information technology firm headquartered in Spring, Texas, United States, established on November 1, 2015, following the split of the Hewlett-Packard company in Palo Alto, California. In the third quarter of 2023, Hewlett Packard Enterprise Company (NYSE:HPE) achieved notable success in its Intelligent Edge segment, encompassing Internet of Things (IoT), Operational Technology (OT) devices, and edge computing hardware. The Intelligent Edge segment generated revenues of $1.4 billion, marking a substantial 50% increase compared to the corresponding quarter of the previous year. These revenues constituted approximately 20% of HPE’s total earnings for the quarter.
At the end of Q3 2023, 47 hedge funds tracked by Insider Monkey reported having stakes in Hewlett Packard Enterprise Company (NYSE:HPE), a slight decline from 50 in the previous quarter. These stakes have a total value of roughly $864.4 million.
9. Devon Energy Corporation (NYSE:DVN)
Share Price as of January 19: $40.80
Number of Hedge Fund Holders: 52
Devon Energy Corporation (NYSE:DVN) is a company specializing in hydrocarbon exploration, with a primary focus on operations in the United States. Incorporated in Delaware, its main corporate headquarters is located at the Devon Energy Center, a 50-story skyscraper in Oklahoma City, Oklahoma.
On December 11, Morgan Stanley upgraded Devon Energy Corporation (NYSE:DVN) stock from Equal Weight to Overweight and raised the price target to $52, up from $48. The firm cited its anticipation of improved capital efficiency for the company in 2024.
Among the 910 hedge funds tracked by Insider Monkey, 52 of them held stakes in Devon Energy Corporation (NYSE:DVN). Notably, the largest stake in the company was held by Donald Yacktman’s Yacktman Asset Management, possessing a stake valued at $145.2 million.
8. Coupang, Inc. (NYSE:CPNG)
Share Price as of January 19: $15.00
Number of Hedge Fund Holders: 55
Coupang, Inc. (NYSE:CPNG) is a prominent e-commerce company headquartered in Seoul, South Korea, providing a diverse range of services, including same-day and next-morning delivery of groceries and general merchandise. Additionally, the company offers delivery of prepared foods through Coupang Eats and video streaming through Coupang Play.
According to a regulatory filing, Coupang, Inc. (NYSE:CPNG) reported an operating profit of $87 million for the July to September period in 2023, representing a 13% increase compared to the same period the year before. This marks Coupang's third consecutive profitable quarter in the current year, accumulating a total operating profit of $341.9 million. This positive trend has raised expectations that the company is on track to achieve an annual profit for the first time since its establishment in 2010.
As of Q3 2023, data from Insider Monkey on 910 hedge funds revealed that 55 hedge funds held holdings in Coupang, Inc. (NYSE:CPNG), with a combined value of $3.6 billion. The largest shareholder was Lee Ainslie’s Maverick Capital, holding 77 million shares valued at $1.3 billion.
7. Sea Limited (NYSE:SE)
Share Price as of January 19: $36.26
Number of Hedge Fund Holders: 55
Sea Limited (NYSE:SE), headquartered in Singapore, is a prominent consumer internet company in Southeast Asia and Taiwan, operating three core businesses: Shopee (an e-commerce platform), Garena (a global games developer and publisher), and SeaMoney (a digital payments and financial services provider).
On November 14, Sea Limited (NYSE:SE) disclosed its quarterly results for Q3 2023. The company reported a 5% year-on-year increase in total revenues, reaching $3.3 billion, along with a substantial 75% year-on-year reduction in net loss to $144 million. However, the normalized EPS for the quarter stood at $0.04, missing consensus estimates by $0.05.
As of Q3 2023, data from Insider Monkey's tracking of 910 hedge funds indicated that 55 hedge funds were bullish on Sea Limited (NYSE:SE), holding shares valued at $2.2 billion. Tiger Global Management LLC emerged as the leading hedge fund with ownership of 11.7 million shares, valued at $514 million.
6. General Motors Company (NYSE:GM)
Share Price as of January 19: $35.54
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) is a prominent multinational automotive corporation engaged in the manufacturing and sale of trucks, crossovers, cars, and automotive parts and accessories globally. The company oversees major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.
In Q3 2023, General Motors Company (NYSE:GM) delivered a robust quarterly performance. Its revenue experienced a 5% year-over-year increase, reaching $44.1 billion, while net income, although down by 7% year-over-year, amounted to $3.1 billion. The company exceeded consensus estimates for EPS by $0.37, reporting quarterly figures of $2.20. In response to the earnings release, RBC Capital analyst Tom Narayan raised the price target for General Motors Company (NYSE:GM) shares to $48 from $47, maintaining an 'Outperform' rating.
By the end of the third quarter of 2023, 68 out of the 910 hedge funds tracked by Insider Monkey had invested in General Motors Company (NYSE:GM) shares. The largest investor is Natixis Global Asset Management’s Harris Associates, with a $1.17 billion investment.
General Motors Company (NYSE:GM), similar to Hewlett Packard Enterprise Company (NYSE:HPE), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), ranks as one of the best affordable stocks to buy now.
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Disclosure. None. 15 Best Affordable Stocks To Buy Now was initially published on Insider Monkey.