3 Stocks Under $50 a Share to Buy Now On the other end of the spectrum are stocks priced below $50 a share. Just because these companies have substantially lower share prices doesn't mean they are lacking in quality...
By Sean Sechler
This story originally appeared on MarketBeat
Investing on a Budget? Check Out These Stocks
A lot of thought should go into deciding whether or not to invest in a company, as investors always want to be sure that a stock is worth risking their hard-earned capital on before pulling the trigger on a purchase. Qualities like strong growth prospects, consistent earnings, and whether or not a company pays dividends are all great places to start when evaluating an equity investment opportunity. Another important thing to think about is whether or not the share price of the stock you are considering falls within your overall budget.
For example, some of the strongest companies in the world like Amazon and Alphabet have share prices in the thousands, which certainly makes it more difficult for retail investors working with a tight budget to add shares. On the other end of the spectrum are stocks priced below $50 a share. Just because these companies have substantially lower share prices doesn't mean they are lacking in quality by any means.
That's why we've put together the following list of 3 stocks under $50 a share to buy now. Keep reading below to learn more.
Rambus Inc (NASDAQ: RMBS)
This is likely one of the strongest semiconductor stocks you haven't heard of, as the stock has been a major outperformer this year compared to more well-known names like AMD and NVIDIA. Rambus is a company that creates semiconductor and Internet Protocol products, which include everything from memory and interfaces to security, smart sensors, and lighting. The stock offers investors a great way to take advantage of the growth in the data center space, as the company's memory interface chips help to enable peak performance.
Rambus posted strong Q4 earnings results last February that included revenue of $45.3 million, up 107.8% year-over-year, which is a good sign that this small-cap company has positive momentum heading into its new fiscal year. There's also a lot to like about how Rambus produced a record annual product revenue of $143.9 million last year, up 26% year-over-year. While this is not a cheap stock by traditional valuation metrics, it has shown relative strength in recent sessions and could be a great long-term holding if you are interested in under-the-radar semiconductor companies.
Teck Resources (NYSE: TECK)
Metals & mining stocks like this one have been steadily trending higher in 2022, and investors should probably expect the upside to continue given the continued strength in commodity prices. Teck Resources is one of the world's largest producers of zinc and metallurgical coal, and the company also mines copper, lead molybdenum, silver, and bitumen. It's hard to not have a positive outlook on zinc and copper prices going forward thanks to strong global demand, while Teck should also be boosting its annual metallurgical coal production considering the supply chain disruptions that are stemming from the Russia-Ukraine conflict.
It's worth mentioning that Teck Resources closed out 2021 in a big way, with the company posting its highest ever quarterly and annual adjusted EBITDA. The company saw its revenue increase by 72% year-over-year to $4.4 billion in Q4, which is a nice indication of just how strong Teck's financial growth could be going forward. Shares have been consolidating around 52-week highs for a few weeks now, so keep an eye out for a breakout on this stock priced at under $50 a share.
Vaneck Gold Miners ETF (NYSEARCA: GDX)
Continuing with the strength in commodities theme, we have the Vaneck Gold Miners ETF, a great way to gain exposure to a variety of different gold mining stocks. Gold has been a strong performer this year thanks to its perceived safe-haven asset status and continued signs of inflation, and the demand for this shiny metal has only increased following the recent geopolitical turmoil. Gold miner stocks can be a great way to potentially gain leveraged upside returns when the price of gold is heading higher, but keep in mind that downside risk is also exaggerated.
This ETF includes some of the best quality gold miners out there, including Newmont Corp, Barrick Gold, Franco-Nevada Corp, and more. It's also a nice pick due to how ETFs can reduce single-stock risk, as gold miners can be very hit or miss in terms of their performance. The Vaneck Gold Miners ETF might be on the verge of hitting new 52-week highs in the coming sessions and is a solid way to add gold exposure for under $50 a share.