Flashy stocks with high market capitalizations like Facebook [NASDAQ: FB] and Apple [NASDAQ: AAPL] may be getting all of the attention right now, but cheaper stocks offer up opportunities to profit big time too.
In many respects, stocks under $50 represent a happy medium for investors. They’re often well known companies yet without the hefty price tag that’s associated with companies like Amazon [NASDAQ: AMZN].
Here are seven of the best stocks under $50 to buy now.
Redfin [NASDAQ: RDFN] is a real estate brokerage firm and website that allows users to search the listings for sale in a given location, filtering their query based on criteria such as price, bedrooms, and square feet.
Shares of Redfin have been on a tear lately, jumping 24% in January 2019 after the company announced it would expand into the Los Angeles market.
Investors received some further good news in February after CEO Glenn Kalman said that Q4 2018 had seen stronger financial performance than expected.
2. H&R Block
H&R Block [NYSE: HRB] is a U.S. financial services company that operates in North America, Australia, and India and offers tax preparation, payroll, and business consulting.
Several circumstances are combining to make HRB an attractive investment right now. While the 2017 U.S. tax cut law promised to simplify the filing process, many Americans were left confused by the new changes to the tax code.
What’s more, the U.S. Congress appears likely to pass a new regulation banning the IRS from developing its own free tax filing services. In this environment, tax preparation services like H&R Block will likely appear attractive to a greater number of customers.
3. Sirius XM
Sirius XM [NASDAQ: SIRI] is a broadcasting company that offers a subscription-based music streaming service via satellite radio. Sirius XM’s fate is heavily linked to the fate of the automotive industry that supplies the vehicles where it’s installed.
February 1st saw the successful completion of Sirius XM’s bid to purchase competitor Pandora, securing its position in the marketplace.
The company’s prospects appear steady and stable: it has over 34 million subscribers and is the world’s largest radio company by revenue.
Sirius XM shares have delivered positive returns for investors every year in the previous decade. In addition, the company’s strong free cash flow allows it to buy back its debt and distribute dividends to shareholders.
Tech titan Oracle [NYSE: ORCL] specializes in database systems, cloud computing, and enterprise software. Since its founding in 1977, Oracle has grown to become the world’s third-largest software company by revenue.
Presidential candidate Elizabeth Warren is the most prominent voice calling to break up tech mega-corporations such as Google, Amazon, and Facebook. However, unlike other players in the database and cloud computing space, Oracle has thus far received little attention from politicians and the media.
In the event that these companies were broken up under antitrust regulations, Oracle could stand to gain as one of the biggest tech firms below the FAANG tier.
Comcast [NASDAQ: CMCSA] is a major U.S. telecommunications conglomerate offering cable TV and Internet services to subscribers in 40 U.S. states.
In addition, the company owns and operates TV channels such as MSNBC, CNBC, and USA Network, as well as the film studio Universal Pictures and the theme park Universal Parks & Resorts.
Despite its infamously poor customer service, Comcast has a lot to recommend it as a stock. In April 2019, shares hit their 52-week high.
The company has delivered consistently solid performance for the past several years, and revenue was up by 11% in 2018. Last year also saw the acquisition of Sky, which gives Comcast plenty of room to grow as a business.
Sometimes described as the “Russian Google,” Yandex [NASDAQ: YNDX] is a multinational corporation whose offerings include search and information services, navigational services, and online advertising.
The Yandex search engine has more than 50% market share for the Russian language, and has become the 5th most popular search engine worldwide (after Google, Baidu, Bing, and Yahoo!).
Russia is one of the few countries where Google does not dominate the search engine landscape, thanks to Yandex’s ability to better handle Cyrillic characters.
However, the company is also wisely diversifying its offerings to include cloud computing, job hunting, and rideshare services. Analysts expect that Yandex earnings will rise by 31% this year.
Zillow [NASDAQ: Z] is one of Redfin’s main competitors in the world of online real estate. The website dubs itself “the leading real estate marketplace” and allows buyers to search for homes that are available for purchase or rent.
In February, Zillow announced that it would invest more effort and attention into its Zillow Offers service, which allows customers to sell their home to the company quickly and reliably.
Since the company’s IPO in 2011, shares have more than doubled.
What’s more, Zillow recently announced ambitious targets for the company’s future growth: over $2 billion in annual revenue over the next three to five years.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.