15 Best Low Cost Stocks To Buy Under $75
In this article, we discuss the 15 best low cost stocks to buy under $75. You can skip our detailed analysis of the current stock market investment trends, and go directly to read 5 Best Low Cost Stocks To Buy Under $75.
The latest economic indicators suggest that the US economy remains resilient and is in better shape than anticipated, defying concerns of a recession. According to the Commerce Department's report on economic growth, the US economy expanded by 3.1% year-over-year in the fourth quarter of 2023, driven by robust consumer spending on healthcare, dining out, and automobiles. Additionally, holiday season sales surpassed expectations, reaching $964.4 billion during November and December, according to data from the National Retail Federation.
The strength of the US economy, coupled with the possibility of future rate cuts, has emboldened market bulls to make more optimistic predictions and set higher targets for the S&P 500. For instance, Katie Stockon, founder and managing partner of Fairlead Strategies, suggested on CNBC that the S&P 500 could potentially reach 6,100 in the long term if new highs are achieved. Despite some stocks being overbought, Stockon noted signs of strength in the market, indicating the beginning of a bull market. Furthermore, Lori Calvasina from RBC Capital Markets remarked in December that while the market is expected to grow gradually in the second half of 2024, investors may need to pause to digest the significant gains witnessed in the fourth quarter of 2023.
In such an environment, potential investors looking to dip their feet in the stock market often seek out low-cost yet potentially lucrative stocks to navigate the world of finance. While these stocks may not provide the same level of security as mega-cap firms like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), they offer the potential for decent short-term returns due to their volatility. In this context, some of the best cheap stocks to buy include CVS Health Corporation (NYSE:CVS), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), along with others listed below.
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Our Methodology
We used stock screeners to shortlist stocks that were trading at a share price of less than $75. The compilation of cheap stocks is derived from their popularity among the 910 hedge funds monitored by Insider Monkey. The roster of 15 best cheap stocks to buy under $75 is organized in ascending order based on the count of hedge funds that held each stock. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
15. The Kroger Co. (NYSE:KR)
Share Price as of January 27: $46.30
Number of Hedge Fund Holders: 41
The Kroger Co. (NYSE:KR), commonly known as Kroger, is a prominent American retail corporation operating an extensive network of supermarkets and multi-department stores across 35 states in the United States. With a presence in over 2,700 supermarkets and multi-department stores, The Kroger Co. (NYSE:KR) holds a significant position in the global food retail industry.
Kroger Co (NYSE:KR) disclosed its third-quarter financial results earlier in November of 2023. The company reported adjusted earnings per share (EPS) of $0.95 for the period, surpassing expectations by $0.03. Additionally, the reported revenue stood at $33.96 billion, exceeding estimates by $60 million.
As of the end of the third quarter of 2023, 41 hedge funds tracked by Insider Monkey had investments in The Kroger Co. (NYSE:KR), representing a slight decline from 43 in the previous quarter. The collective value of these stakes amounted to over $3.13 billion.
Oakmark Funds funds mentioned The Kroger Co. (NYSE:KR) in its Q3 2023 investor letter. Here is what the firm has to say:
“The Kroger Co. (NYSE:KR) is the second-largest grocery retailer in America behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery. However, we believe the company’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons has the potential to drive accelerated earnings growth and further scale advantages. If the merger is not approved, the company will have the capacity to return approximately 25% of its market cap to shareholders.”
Much like CVS Health Corporation (NYSE:CVS), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), The Kroger Co. (NYSE:KR) ranks as one of the best cheap stocks to buy.
14. Monster Beverage Corporation (NASDAQ:MNST)
Share Price as of January 27: $55.44
Number of Hedge Fund Holders: 42
Monster Beverage Corporation (NASDAQ:MNST) is a U.S.-based company that focuses on creating, promoting, selling, and distributing energy drink beverages and concentrates. Ranking as one of the best cheap stocks to buy, it features well-known brands such as Monster Energy, Relentless, and Burn. On November 13, financial firm Jefferies began coverage of Monster Beverage Corporation (NASDAQ:MNST) stock with a Buy rating and set a price target of $65. The analysis highlighted the robustness of the company’s core business. At the end of the third quarter of 2023, 42 hedge funds in the database of Insider Monkey held stakes worth $1.05 billion in Monster Beverage Corporation (NASDAQ:MNST), compared to 44 in the preceding quarter worth $1.19 billion.
13. Ford Motor Company (NYSE:F)
Share Price as of January 27: $11.38
Number of Hedge Fund Holders: 43
Headquartered in Dearborn, Michigan, United States, Ford Motor Company (NYSE:F) stands as an American multinational automobile manufacturer, specializing in the sale of automobiles and commercial vehicles under the Ford brand, while luxury cars are marketed under the distinguished Lincoln brand. Earlier this month, Ford Motor Company (NYSE:F) reported its domestic sales volumes for the fourth quarter, revealing record numbers in electric vehicle (EV) sales. The company sold 25,937 EVs during the period, marking a notable 24% year-over-year growth.
On November 1, Barclays upgraded the rating of Ford Motor Company (NYSE:F) stock to Overweight and maintained a $14 price target. Analyst Dan Levy highlighted the stock's historically cheap valuation, suggesting the potential for an attractive upside in the event of a modest reversal of sharply negative sentiment.
As of Q3 2023, 43 elite hedge funds tracked by Insider Monkey held shares of Ford Motor Company (NYSE:F), with a total valuation of $1.3 billion. Among them, Ken Fisher’s Fisher Asset Management emerged as the largest hedge fund shareholder, owning 55.6 million shares valued at $691 million.
12. Sea Limited (NYSE:SE)
Share Price as of January 27: $39.60
Number of Hedge Fund Holders: 55
Sea Limited (NYSE:SE), headquartered in Singapore, is a notable consumer internet company in Southeast Asia and Taiwan, operating three primary businesses: Shopee (an e-commerce platform), Garena (a global games developer and publisher), and SeaMoney (a digital payments and financial services provider).
On November 14, Sea Limited (NYSE:SE) announced its quarterly results for Q3 2023. The company reported a 5% year-on-year increase in total revenues, reaching $3.3 billion. Additionally, there was a significant 75% year-on-year reduction in net loss, amounting to $144 million. However, the normalized EPS for the quarter was $0.04, missing consensus estimates by $0.05.
As of Q3 2023, data from Insider Monkey's tracking of 910 hedge funds indicated that 55 hedge funds were bullish on Sea Limited (NYSE:SE), holding shares valued at $2.2 billion. Tiger Global Management LLC emerged as the leading hedge fund, owning 11.7 million shares valued at $514 million.
11. The Coca-Cola Company (NYSE:KO)
Share Price as of January 27: $59.40
Number of Hedge Fund Holders: 57
Highly regarded as one of the best cheap stocks to buy, The Coca-Cola Company (NYSE:KO) is a renowned multinational American corporation celebrated for producing the iconic beverage, Coca-Cola. Beyond its flagship product, the company actively engages in the manufacturing, distribution, and promotion of a diverse range of non-alcoholic beverage concentrates, syrups, and notably, alcoholic beverages within the beverage industry. On December 13, investment advisory Citi maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $67 from $65. As of the conclusion of the third quarter, among the 910 funds tracked by Insider Monkey, 57 hedge funds held positions in the company. Notably, the most significant investor was Warren Buffett, who maintained a substantial stake valued at $22.39 billion in The Coca-Cola Company (NYSE:KO). In addition to CVS Health Corporation (NYSE:CVS), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), The Coca-Cola Company (NYSE:KO) is a decent cheap stock to buy under $75.
10. CVS Health Corporation (NYSE:CVS)
Share Price as of January 27: $73.00
Number of Hedge Fund Holders: 64
CVS Health Corporation (NYSE:CVS) stands as a prominent healthcare entity overseeing an extensive network of retail pharmacies and clinics across the nation. The organization operates under various brands, including CVS Pharmacy (a retail pharmacy chain), CVS Caremark (a pharmacy benefits manager), and Aetna (a health insurance provider).
During the third quarter, CVS Corporation (NYSE:CVS) achieved sales of $89.76 billion, reflecting an almost 11% increase from the corresponding period in the previous year. One of the best cheap stocks to buy, CVS Corporation (NYSE:CVS) also reported a net income of $2.27 billion, or $1.75 per share, for the quarter. This marked a significant turnaround from the net loss of $3.40 billion, or $2.59 per share, reported for the same period a year ago.
As of the conclusion of the third quarter in 2023, data from Insider Monkey’s database, which monitors 910 hedge funds, indicated that 64 hedge funds had positions in CVS Health Corporation (NYSE:CVS). Notably, Two Sigma Advisors, led by John Overdeck and David Siegel, emerged as a significant investor with a substantial stake in the company valued at $344.87 million.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Share Price as of January 27: $49.80
Number of Hedge Fund Holders: 65
Bristol-Myers Squibb Company (NYSE:BMY) operates as a global biopharmaceutical firm, engaging in various facets of the biopharmaceutical industry, including research, development, licensing, manufacturing, marketing, and distribution of biopharmaceutical products. These products are designed to address a broad spectrum of medical conditions, covering hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases.
On December 27, Geoff Meacham at Bank of America Securities maintained a Buy rating and a $68 price target on shares of Bristol-Myers Squibb Company (NYSE:BMY).
As of the conclusion of the third quarter of 2023, Bristol-Myers Squibb Company (NYSE:BMY) attracted investments from 65 out of the 910 hedge funds examined in Insider Monkey’s research.
RGA Investment Advisors made the following comment about Bristol-Myers Squibb Company (NYSE:BMY) in its Q3 2022 investor letter:
“Bristol-Myers Squibb Company (NYSE:BMY), which we referenced above, boasts a double digit free cash flow yield that gets divided roughly equally between repurchases, a dividend and M&A in what is the best environment for acquisitions perhaps ever. In 2019, BMY acquired Celgene, who had one of the better corporate development programs in the industry. We view this as a great outlet for us as generalists considering a company like BMY should truly thrive with the ability to acquire outstanding assets and science at depressed valuations. We touched on the Turning Point acquisition above and we expect the company to be increasingly active in the M&A landscape. Importantly, Celgene also came to BMY with a phenomenal CAR-T platform. CAR-T is a cell therapy that activates the body’s immune system to target cancers. This will be a key growth vector alongside M&A in overcoming the company’s patent cliff.”
8. General Motors Company (NYSE:GM)
Share Price as of January 27: $35.18
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) is a prominent multinational automotive corporation involved in the manufacturing and sale of trucks, crossovers, cars, and automotive parts and accessories worldwide. Arguably one of the best cheap stocks to buy, General Motors Company (NYSE:GM) oversees major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.
In Q3 2023, General Motors Company (NYSE:GM) delivered a strong quarterly performance. Its revenue experienced a 5% year-over-year increase, reaching $44.1 billion, while net income, although down by 7% year-over-year, amounted to $3.1 billion. The company exceeded consensus estimates for EPS by $0.37, reporting quarterly figures of $2.20. In response to the earnings release, RBC Capital analyst Tom Narayan raised the price target for General Motors Company (NYSE:GM) shares to $48 from $47, maintaining an 'Outperform' rating.
By the end of the third quarter of 2023, 68 out of the 910 hedge funds tracked by Insider Monkey had invested in General Motors Company (NYSE:GM) shares. The largest investor is Natixis Global Asset Management’s Harris Associates, with a $1.17 billion investment.
7. Pfizer Inc. (NYSE:PFE)
Share Price as of January 27: $27.47
Number of Hedge Fund Holders: 73
Founded in 1849 by German entrepreneurs Charles Pfizer and Charles F. Erhart, Pfizer Inc. (NYSE:PFE) is a renowned multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan, New York City. Globally recognized for its extensive contributions to medical research, development, and production, Pfizer Inc. (NYSE:PFE) operates across various medical fields, including immunology, oncology, cardiology, endocrinology, and neurology.
In December 2023, the company announced its 14th consecutive annual dividend increase. It currently pays a quarterly dividend of $0.42 per share and has a dividend yield of 6.12%, as of January 27.
As of the conclusion of Q3 2023, data from Insider Monkey’s database revealed that 73 hedge funds maintained stakes in Pfizer Inc. (NYSE:PFE), a figure unchanged from the previous quarter. The combined value of these stakes exceeds $2.4 billion.
6. Occidental Petroleum Corporation (NYSE:OXY)
Share Price as of January 27: $58.40
Number of Hedge Fund Holders: 75
Occidental Petroleum Corporation (NYSE:OXY) is a U.S.-based company focused on hydrocarbon exploration in the United States and the Middle East. Furthermore, the company is involved in petrochemical manufacturing operations in various locations, including the United States, Canada, and Chile. Incorporated in Delaware, Occidental Petroleum Corporation (NYSE:OXY) has its corporate headquarters in Houston.
On December 13, John Freeman, an analyst at Raymond James, maintained a Strong Buy rating on Occidental Petroleum Corporation (NYSE:OXY) shares. The analyst also placed a price target of $70 on the stock.
Within the pool of 910 hedge funds monitored by Insider Monkey, 75 held positions in Occidental Petroleum Corporation (NYSE:OXY). The primary stakeholder in the company was Warren Buffett’s Berkshire Hathaway, possessing a stake valued at $13.2 billion.
Occidental Petroleum Corporation (NYSE:OXY) join the ranks of CVS Health Corporation (NYSE:CVS), Ford Motor Company (NYSE:F), and Bank of America Corporation (NYSE:BAC), as one of the best cheap stocks to buy under $75. Click to continue reading and see 5 Best Low Cost Stocks To Buy Under $75. Suggested articles:
Disclosure. None. 15 Best Low Cost Stocks To Buy Under $75 is originally published on Insider Monkey.
