The Top 3 Stocks Under $50 to Buy Now They aren't quite as volatile as penny stocks and can end up being some of the best bargains in the market. Let's take a look at the top 3 stocks under $50 to buy now.
By Sean Sechler
This story originally appeared on MarketBeat
While there's much more to evaluating a company than simply looking at what it's trading at, you can actually learn a lot about a stock simply based on its price. For example, stocks that are priced at less than $5 per share are extremely volatile and are companies that have a long way to go towards becoming household names. On the other hand, higher-priced stocks like Amazon and Berkshire Hathaway tend to be more established businesses with fewer outstanding shares and less volatility. While market capitalization and fundamentals are also important pieces of the puzzle for valuing a stock, the truth is that the price of a stock is always going to play a key role in your decision-making.
Stocks that are priced under $50 per share are interesting because they can offer a nice balance between affordability and growth potential. They aren't quite as volatile as penny stocks and can end up being some of the best bargains in the market. Let's take a look at the top 3 stocks under $50 to buy now.
The Carlyle Group (NASDAQ:CG)
This stock is a great buy under $50 because it offers investors exposure to a leading global alternative asset management firm. The Carlyle Group is a company that raises capital for, invests in, and manages different alternative investment vehicles such as private equity and real assets. With billions of assets under management across 3 business segments and 437 investment vehicles, it's a very strong company that relies on its deep expertise to grow and develop the firm.
Investors will be attracted to the fact that this stock offers a 2.38% dividend yield and trades at an attractive P/E ratio of 8.42. The Carlyle Group announced its Q1 earnings at the end of April and reported a record $260 billion in assets under management, up 20% year-over-year. The company also delivered a Q1 GAAP net income of $869 million, up from a GAAP net loss of $612 million in Q1 2020. Adding this stock to your investment plans for under $50 per share could be a very savvy move, especially given the fact that the company has $75 billion in "dry powder" at this time for new deals.
Marvell Technology (NASDAQ:MRVL)
If you're looking for a solid semiconductor stock that is currently trading under $50, look no further than Marvell Technology. It's a fabless semiconductor company that is a global provider of silicon solutions for data storage, communications, and consumer markets. If you aren't familiar with fabless semi companies, they outsource the majority of their semiconductor fabrication to third-party foundries which saves them a ton of money because they don't have to own and maintain a fab. This allows Marvell to invest more money into developing new products instead of spending big on manufacturing.
There's a lot to like about Marvell's growth prospects at this time, given the rise of 5G networks, data center spending, and the company's recently completed acquisition of Inphi Corporation. The acquisition will help to expand Marvell's reach in data centers and 5G network infrastructure, which are areas that are quite attractive to long-term investors. This stock offers a 0.54% dividend yield and recently reclaimed the 200-day moving average, a sign that institutional money could be starting to flow back in.
Pfizer (NYSE:PFE)
Finally, we have Pfizer, a major pharmaceutical company that is perfect for more conservative investors that are interested in dividend income. Even though the Biden administration recently announced that it supports a proposed waiver on intellectual property protection for COVID-19 vaccines, investors should still be intrigued by Pfizer's role in fighting the global pandemic. There are tons of barriers that other companies will need to overcome to manufacture mRNA vaccines, which means that Pfizer should maintain a powerful position in the worldwide market for COVID-19 vaccines for a long time.
Pfizer is also an attractive option at this time thanks to its strong pipeline of new drugs that could deliver strong growth as they are rolled out. Look no further at the company's cardiovascular drug Vyndaqel which is a great example of a drug with blockbuster potential. The company reported strong Q1 earnings earlier in May that included $14.6 billion in revenues, representing 42% operational growth. There's also a lot to like about Pfizer's 3.92% dividend yield, which is supported by steady cash flows. If you are interested in owning one of the biggest pharmaceutical companies in the world at under $50 a share, Pfizer is a fantastic choice.
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