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It is never too early to start your investment journey. If you wait until you have enough money to start investing, you could end up waiting forever. With thousands of stocks to choose from, it is easy to begin with any amount of cash. The trick is to pick the right stocks and hold on to them for the long term. Any market volatility cools down in the long run and if you have picked the right stocks, you could take home solid gains.
I’ve identified three growth stocks below $50 that are an ideal addition to your portfolio. These three companies are establishing themselves as industry pioneers and have ample potential to grow. Whether you are a beginner or have already built a stock portfolio, here are three stocks under $50 worth considering.
Pfizer (PFE)
Biotech company Pfizer ( NYSE: PFE ) became a global name during the pandemic. It was one of the vaccine makers that enjoyed blockbuster sales when countries were placing massive orders for the vaccine. However, this did not last long and as the impact of the pandemic slowed, the demand for Pfizer’s vaccines also dropped. I believe the management was prepared for this dip and has made the most of the cash flow it generated from vaccine sales. Besides other acquisitions, it purchased Seagen for $43 billion. Products from Seagen’s portfolio have helped boost the company’s revenue and with Seagen’s approved cancer products, Pfizer will be able to see higher revenue growth.
In the second quarter, it reported a modest 3% jump in revenue to $13.3 billion but the management has taken cost-cutting measures to save $4 billion by the end of the year. The management issued new guidance after the results and is now aiming for revenue between $59.5 billion to $62.5 billion and an EPS in the range of $2.45 to $2.65.
Pfizer also appeals to dividend investors for the impressive 5.84% dividend yield and the company has increased dividends for 15 consecutive years. Trading at $28, PFE stock has dropped 3% YTD and 21% in the past 12 months. The stock is moving in the range of $25 to $31 since the beginning of the year.
Strong financial performance and steady revenue growth make Pfizer an ideal stock to own. If you are a passive income investor, Pfizer is one of the best dividend stocks under $50.
Key Points in This Article:
- Pfizer, a dividend stock is slowly getting back on track with cost-cutting measures and acquisitions.
- Palantir is all about big data and its diversified business drives steady growth.
- SoFi Technologies has reported three consecutive profitable quarters and could double your money.
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Palantir Technologies (PLTR)
Tech company Palantir Technologies ( NYSE: PLTR ) is my favorite artificial intelligence bet. Trading at $31, the stock is up 92% YTD and 108% in the past 12 months. As one of the top tech companies dealing with government contracts and the defense sector, Palantir enjoys steady revenue growth. A highly diversified business today, Palantir saw a 27% YOY growth in revenue to $678 million in the second quarter and an impressive 83% YOY jump in commercial customers to 295 customers.
The company’s commercial revenue for the quarter was $307 million and government revenue was $371 million. Management is aiming for revenue from $697 million to $701 million for the third quarter. I think Palantir has the potential to double your money in the long term. While the stock did see a slump for most of 2022 and hit the single digit, it bounced back in 2023 and has been on a rally. Its Artificial Intelligence Platform (AIP) has helped the business grow tremendously over the past year.
The company has partnered with Microsoft ( NASDAQ: MSFT ) to cater to the intelligence and defense agencies across the U.S. Palantir has already proved its strength amid the highly competitive industry and has ample space to grow. A promising player , smart investors should grab the stock before it skyrockets.
SoFi Technologies (SOFI)
Fintech company SoFi Technologies ( NASDAQ: SOFI ) is here to revolutionize banking and financial services. It started as a student loan lender and then turned into a full-fledged financial services provider. SoFi offers a one-stop solution for all financial needs and has become a favorite of users. It has seen steady user growth and ended the second quarter with 8.8 million users. The company reported impressive financials for the second quarter but this hasn’t reflected on the stock. Trading at $7, SOFI stock remains beaten down and has lost 24% of its value since the start of the year.
The revenue came in at $599 million, up 22% YOY, and the net income stood at $17 million, a shift from a loss in the previous year. Management has taken the right steps at the right time to report steady growth during a period of high inflation. SoFi is driven by its financial services segment which saw an 80% jump in revenue to generate $176.1 million. It reported its first profitable quarter in December and has maintained the momentum.
For the third quarter, the management is aiming for revenue from $625 to $645 million. While it does face competition in the industry, no other company has been able to come close to the suite of offerings that SoFi has. It has 12.8 million lending products in the market and the management is now gradually shifting focus from unsecured loans to secured loans in order to reduce risk. However, net interest income continues to drive revenue for the business .
With a solid financial footing, SoFi is a high-risk, high-reward stock to own.
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