Sometimes, you may be on the lookout for cheap stocks. If you’re a beginning investor with a small capital looking to dip your toe in the stock market, stocks under $50 may appeal to you. Here are the top stocks under $50, $20, $10, $5, and even $1.
What are the top stocks under $50?
You can find excellent stocks under $50 in the tech space, which has bright prospects. The global cloud computing market is on track to hit $832 billion in annual revenue in 2025 from $371 billion in 2020. Whereas top cloud stocks Amazon, Microsoft, and Alphabet cost hundreds or thousands of dollars, their smaller competitors are more affordable.
Rackspace stock has traded in the $15–$23 range since its August 2020 IPO, and Chinese cloud service company Kingsoft Cloud has traded between $17 and $43 since its May 2020 IPO. Mobile operator China Telecom is also in the cloud service business, and its stock has traded at $30–$50 since October 2018.
Similarly, the EV (electric vehicle) market is on course to reach $802.8 billion in annual revenue in 2027 from $162.3 billion in 2019. Although the best-known EV stock, Tesla, sells for hundreds of dollars, many of its competitors' stocks cost under $50. For example, GM stock has traded between $30 and $35 since October 2018, and Nikola stock has traded at $10–$80 since its IPO.
What are the top stocks under $20?
Investors can find plenty of good stocks under $20 in the digital payment, online food delivery, and renewable energy sectors, which should enjoy robust growth for many years. For example, the global renewable energy market is on course to hit $1.5 trillion in 2025 from $928 billion in 2017, thanks to efforts to curb climate change. Since October 2018, SunPower stock has traded at $3–$16, and Plug Power stock has traded at $1–$16.
What are the top stocks under $10?
If you’re shopping for the top stocks under $10, you may find cybersecurity, 5G technology, and REIT companies attractive, as these industries have more growth ahead. As the rise in remote working during the COVID-19 pandemic has increased the number of points hackers can exploit, companies are spending more on cybersecurity.
Globally, the cybersecurity market is on track to grow to $326 billion in 2027 from $156 billion in 2019, and the 5G technology market is on course to reach $667.9 billion in 2026 from $5.5 billion in 2020. Since October 2019, leading 5G tech vendor Nokia has traded in the $2.40–$6 range, and its rival Ericsson has traded between $6 and $12. Checkpoint Therapeutics, BlackBerry, Zix Corp, and Safe-T Group are some cybersecurity stocks under $10.
What are the top stocks under $5?
Many good companies have fallen on hard times because of the COVID-19 pandemic, sending their stocks under $5. Whereas many epicenter stocks have borne the brunt of the pandemic, they should recover with the development of vaccines and other treatments. High-quality stocks that have slid under $5 because of temporary problems include GoPro, Genius Brands, and AMC Entertainment. At their attractive valuation, these companies could also become buyout targets, providing investors with exits or gateways to tech, healthcare, and other valuable sectors.
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What are the top stocks under $1?
If you’re looking for the top stocks under $1, you have plenty of options. One is in the global legal marijuana market, which is on course to hit $73.6 billion in 2027 from $17.7 billion in 2019. Pot stocks you can buy under $1 include Hemp, Inc., Medical Marijuana, CannaGrow, Leafbuyer, and General Cannabis. There are also plenty of biotech stocks trading under $1.
But investors seeking stocks under $1 don’t necessarily have to go for penny stocks. You can also buy fractional shares of tech giants such as Amazon and Tesla for as a little $1 through online brokers Robinhood, Cash App, Webull, and SoFi Invest.
Which stocks are best for you?
The stock market has something for every investor. With a little research, it should be easy to find excellent stocks to buy at any price, as long as you know your investing objectives. For example, those investing for retirement may have different objectives than those investing for a college education fund for their children. Stocks that pay dividends may appeal to retirement investors, while growth stocks may be better suited for parents building up college funds. It also helps to know your risk profile and seek stocks that align with your risk appetite.