Start your investment journey with these cheap stocks under $50 and enjoy stable returns
Finding the right stocks to invest in can be a tricky endeavor. While there are thousands of stocks to choose from, few stand the test of time. Whether you have a solid portfolio or are just starting out, keep an eye on a few promising growth stocks. Don’t wait until you’ve amassed thousands of dollars before starting your investing journey. It’s possible to get started with cheap stocks under $50.
The following highly reliable companies have strong fundamentals, impressive business structures and the potential to rise even further. These three companies already have a strong position in the industry and could help you grow your money.
SoFi Technologies (SOFI)
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Fintech companies SoFi Technologies (NASDAQ:SOFI) has beaten its second quarter results. And it has been on a winning streak since the beginning of the year. However, the successful results are not reflected in the share price. At USD 6.65, SOFI shares have lost over 30% of their value since the beginning of the year.
SoFi Technologies has successfully made the transition from a student loan lender to a full-service financial services provider. In the second quarter, the company grew its customer base by 41% year-over-year to eight million. Revenue in the financial services segment increased 80% year-over-year to $176.1 million, while the lending business generated revenue of $340.7 million, up 3% year-over-year. Management is targeting 17.6% revenue growth through 2026.
For the third quarter, the company is targeting revenue of $625 million to $645 million, and for the full year, the company expects revenue of $2.42 billion to $2.46 billion. SoFi Technologies has reached a point where investors no longer have to worry about quarterly numbers or membership growth.
At under $10, SOFI can cater to changing consumer needs and stand out by building a platform that appeals to the younger generation. Although the stock reported impressive numbers over the past three quarters, it failed to reach double digits. However, it may not trade as cheaply in the coming months, so buy while you can.
Palantir Technologies (PLTR)
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A top artificial intelligence (AI) share, Palantir Technologies (NYSE:PLTR) has become a hot commodity lately. With rising investments in AI and growing demand for AI chips and applications, PLTR is impressing investors with strong fundamentals.
The company developed an AI platform that attracted many commercial customers. Previously known for serving government customers, Palantir Technologies is now a highly diversified company. In the first quarter, the company reported a 42% year-over-year increase in its total customer base, and its U.S. commercial customer base grew 69%.
Shares are up 49% year-to-date and are trading at $24. PLTR stock has tripled in value over the past five years thanks to steady investments in technology and solid fundamental growth. The diversified business will drive strong revenue numbers in the coming months. Also, outstanding commitments increased 74% year-on-year in the first quarter, which will be converted into revenue in the coming quarters. The company is targeting revenue in the range of $649 million to $653 million.
The market thinks PLTR stock is overpriced, but I believe it is trading at a reasonable price. With strong growth numbers and improving fundamentals, the stock could reach $30 in the coming months.
AI is the driving force behind Palantir’s success, so consider buying while the price is below $50. The company is on a roll and could maintain its momentum.
Pfizer (PFE)
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Biotech companies Pfizer (NYSE:PFE) has successfully managed to recover from the decline in Covid-19 vaccine sales. The company is back in the spotlight after its second-quarter results, and management has raised its full-year outlook.
All biotech companies that invested in Covid-19 vaccines saw a decline in sales. However, Pfizer seized the opportunity and used the money generated from vaccine sales to make acquisitions. This has boosted the company’s financial growth while offsetting the decline in vaccine demand.
At $29.74, Pfizer stock is up 14 percent over the past six months and has gained 8 percent in the past month. The company recently reported its results, closing the second quarter with revenue of $13.28 billion and earnings per share of 60 cents.
Although revenue increased only 2% year over year, cost-cutting measures that the company plans to save $4 billion by the end of this year are already paying off. The company is also working on cancer treatment after acquiring Seagen in 2023. Seagen’s approved cancer products will continue to drive higher revenue for the company.
Now, management is targeting earnings per share of $2.45 to $2.65 for the year and revenue in the range of $59.5 billion to $62.5 billion. Additionally, Pfizer is a dividend-paying stock with a yield of 5.52%, which could be attractive to passive income investors.
At the time of publication, Vandita Jadeja did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.
At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.
