Best Stocks Under $50

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Contributor, Benzinga
Updated: July 2, 2022

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Blink Charging (XNAS:BLNK)

From Tesla to General Motors, the country’s largest electric vehicle stocks have seen massive growth since 2020. However, you don’t need to buy an $800 share of Tesla stock to start investing in the growing electric vehicle space. Blink Charging develops and manufactures batteries, charging stations and ports needed to keep electric vehicles on the road. Blink’s stock has seen a steady price increase since December 2020 — and its momentum is still carrying on. The company was recently added to Forbes’ list of America’s Best Small Companies, and insider sentiment within the company remains high.

Blink Charging
(NASDAQ:BLNK)
$13.17
-0.92[-6.53%]
Last update: 12:16PM (Delayed 15-Minutes)
Get Real Time Here
Day Range12.94 - 14.1752 Wk Range11.7 - 35.25Open / Close13.84 / -Float / Outstanding- / 50.9M
Vol / Avg.569.2K / 1.1MMkt Cap669.9MP/E-50d Avg. Price14.59
Div / Yield-Payout Ratio-Total Float-EPS-

Simply Good Foods (XNAS:SMPL)

Simply Good Foods is an American consumer packaged goods company. The company focuses on developing and marketing health-conscious products like protein drinks, nutrition bars and other prepackaged healthy snacks. SMPL has consistently beaten earnings estimates — its most recent earnings-per-share report found that Q3 earnings beat consensus estimates by $0.06 per share. Average expert sentiments for the company have varied from “Strong Buy” to “Buy” according to Yahoo Finance’s aggregated ratings. SMPL can be an excellent addition to your portfolio if you’re searching for a company with solid earnings in the health and wellness sector. 

Simply Good Foods
(NASDAQ:SMPL)
$38.565
0.095[0.25%]
Last update: 12:16PM (Delayed 15-Minutes)
Get Real Time Here
Day Range38.4 - 39.1252 Wk Range29.21 - 45.77Open / Close38.46 / -Float / Outstanding- / 99M
Vol / Avg.98.8K / 645.8KMkt Cap3.8BP/E35.6250d Avg. Price36.18
Div / Yield-Payout Ratio-Total Float-EPS-

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As expected, 2020 has been a tough year for marijuana stocks. A few select companies, however, have shown great potential throughout a turbulent year — including Aphria Inc. Aphria’s Ontario, Canada-based operation has nearly doubled its revenue between 2018 and 2019 and has ramped up production of recreational cannabis products for use by adults in 2020. The change in the 2021 U.S. political climate will most likely will affect Aphria’s growth in the recreational cannabis sphere. 

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Workplaces across all industries have been disrupted by the continuing effects of the COVID-19 pandemic. As workplace safety concerns come to the forefront of the conversation about ongoing precautions, Slack has filled a unique hole in the telecommuting sphere. Slack provides users with an online platform to connect with others in their organization, direct message colleagues, share documents and more. Slack’s stock has seen a steady increase in interest since March 2020, and the average price per share soared by 80% as of January 2021. If you’re searching for an affordable way to capitalize on the growing work-from-home sphere, Slack can be an excellent place to begin.

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(IEC)

As market concerns with in-person employment continue, some companies are turning to automation to limit the possibility of future periods of economic stress. IEC Electronics is a provider of electronics manufacturing services that has seen more attention from investors since December 2020. IEC Electronics services a wide range of industries including defense, medical and aerospace spheres. Since the market crash that occurred in March 2020, IEC Electronics’ stock has more than doubled in value, and earnings and revenue stay consistent. Investors who are searching for an affordable way to add manufacturing stocks to their portfolio should consider IEC Electronics as a potential investment. 

(IEC)
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You don’t need thousands of dollars in the bank to get started investing. Just $50 can help you buy shares of companies with plenty of potential to expand in the future.

Every stock has to start somewhere — consider these top choices under $50 to begin your investment portfolio with stocks poised for future growth. We’ll also help you start investing earlier with a few of our favorite brokers and we’ll introduce you to a few factors you’ll want to consider when you select your investments. 

Overview: Stocks Under $50

When most people think of investing, their minds immediately go to buying and selling shares of stock. But what exactly is a stock and what makes investing in stocks a good idea?

When you invest in a share of stock, you purchase a small portion of a publicly-traded company. While this doesn’t entitle you the same control and rights as the company’s CEO or board members, it does grant you voting rights on future executive changes and other public decisions in most circumstances. You can earn a return on your investment by waiting until your stock increases in value, collecting dividends paid out by the company that issues the stock, or both.

As the name suggests, stocks under $50 are stocks that have a per-share value of less than $50. This typically allows investors to purchase more shares of stock with their investment capital than larger companies. This can provide you with a greater level of growth potential for your portfolio — but these stocks do come with risks and drawbacks.

Most stocks under $50 are issued by small-cap corporations. Small-cap corporations usually have a total market capitalization of less than $2 billion but more than $300 million. You can calculate a company’s market capitalization by multiplying the total number of shares of stock outstanding by the company’s current price per share. 

Although small-cap stocks do offer more room for return and profit when compared to larger cap competitors, investing in these types of companies can also result in multiplied losses if the value of your investments decreases. We recommend diversifying your portfolio with a blend of small-cap stocks with potential and large, well-established names on the market to protect your investment and limit the risk of loss in the event that a company you invest in goes bankrupt or sees a bad quarter. 

Best Online Brokers for Stocks Under $50

Before you can begin investing in any type of stock, you’ll typically need to open an account with a broker. A broker is a financial company that provides you with access to an online trading platform that you can use to buy and sell shares. When you place an order through your brokerage platform, the broker will execute the order using your instructions, sometimes in exchange for a fee or commission.

The broker that you choose will determine how much you pay per trade, the type of platform you can use, the type of orders that you can place, the markets you can trade on and more. Taking a bit of time to compare brokerage platforms can ensure that you’re getting the best possible trading experience depending on your needs and level of experience as an investor.

Not sure where to begin your search? Explore a few of our favorite brokerage options below.  

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Features to Look for in Stocks Under $50

With thousands of stocks under $50 on the market, how can you narrow down your options and choose which stocks you want to invest in? Though there is no foolproof method that you can use to select stocks that will increase in value, start by searching for these common characteristics.

  • Trades on a major exchange: Companies that issue stock that trades on a major exchange (like the Nasdaq or NYSE) must meet a certain set of financial reporting criteria that are not required when trading on smaller exchanges. Protect your investment by investing in companies that trade on major exchanges when getting started.
  • Trends toward debt reduction: Almost every publicly traded company carries some form of debt. Instead of looking at the dollar amount of debt carried by a company, take a look at how its debt is changing over time. Companies that are making progress toward reducing their debts are often in a much better position in terms of future growth when compared to companies that are actively taking on more debt.
  • Upward trends in growth: Smaller companies are in a much more advantageous position when it comes to year-after-year growth. Take a look at each company’s revenue and earnings trends and search for investment opportunities with positive growth trends.

Adding Smaller Stocks to your Portfolio

No matter if you’re looking to take a long-term approach to investing or you’re searching for stocks that you can use to capitalize on market volatility, stocks under $50 can be a great complement to any portfolio. While you can often use this volatility to your advantage, these stocks can also present greater risks. If you do decide to invest in any type of stocks, be sure to do your due diligence and perform your own research before you buy or sell any asset.