These Five (5) Stocks Are Less Than $50 And Moving Higher
It’s easy to say “value is where you find it” with an account worth 6 figures. A single purchase of Chipotle Mexican Grill (NASDAQ: CMG) won’t tilt the meter in regard to account diversification and risk. For those with smaller accounts, finding valuable stocks priced at levels that allow for proper diversification is another matter. Today we’re looking at five of our favorite stocks priced under $50 that have the potential for a high-double-digit upside or better.
Plug Power Is Set Up To Outperform
Plug Power (NASDAQ: PLUG) is working hard to power vehicles and businesses with its hydrogen fuel cell technology. Trading at only $18, it is not the cheapest stock on our list but it has one of the best outlooks for capital gains. The analyst's consensus rating has been coming down over the past year but the average is still more than 100% above the current price action. In addition, the stock is carrying a high 12% short interest that should help fuel the rally we expect to begin after the coming earnings report. The company is slated to report earnings in early August and should be able to top the consensus targets despite the high bar set by the analysts. Even with a miss, the news of late has been very good and promises to drive results over the next year.
Ford, The Future Leader Of EV Sales Globally
Ford (NYSE: F) is one of the latest EV entrants but is well-positioned to take the #1 spot within only a few years. While Tesla is on track to hit 1 million sales in 2022 Ford is already selling 2 million cars per year and is targeting a 50% EV sales mix by 2030 at the latest. Based on the way Ford and other major OEMs have ramped their EV investments, lineups, and targets over the past year we think Ford could hit the 1 million per anum EV target years sooner than expected and take the #1 spot by 2030. In regards to the price, the shares of Ford are trading near $12, about 6X its earnings power, and pay a dividend worth 2.35%.
Energy Transfer LP, A High-Yield Value
Energy Transfer LP (NYSE: ET) operates a network of natural gas pipelines and storage facilities and so has a bit of insulation from the volatility in energy prices. While the price of Nat Gas has come down a bit from its peak and the outlook for demand growth has been trimmed the fundamentals driving the business remain intact. The forecast for natural gas demand remains favorable in regards to volume and that is what counts for this high-yielding value. The stock, units in reality because this is an LP we’re talking about, yield over 6.5% and trades below 7X its earnings outlook which is half the average S&P 500 company and more than triple the yield. And there is a positive outlook for distribution growth, as well.
AMC Entertainment, A Rebound With Legs
The bulls and bears have been battling it out over AMC Entertainment (NASDAQ: AMC) but we think the bulls are about to make a big move. The company is set up to outperform its Q2 results as is the industry at large. A series of blockbuster releases coupled with improving traffic flows are driving the market and should lead not only to outperformance but profitability as well. The recent price action suggests the short-sellers are covering their bets ahead of the next release, a better-than-expected release could trigger a short-squeeze as well.
Kraft-Heinz Is Gaining Momentum
Kraft-Heinz's (NYSE: KHC) turnaround story is gaining momentum and has the stock on track to regain the recent highs before the end of the year. The company is in the acquisition phase of its reorganization and has been actively buying growth opportunities in international markets. In our view, the stock is deeply undervalued relative to its blue-chip consumer staples peers trading at 14.3X its earnings outlook specifically because of the 4.1% dividend yield.