The 5 Most Undervalued Stocks Under $50 to Buy in June 2024

Hey there! Looking to level up your investment game without spending a fortune? Exploring undervalued stocks priced under $50 could be just what you need, especially if you’re starting small. These stocks offer a chance to grab a meaningful piece of the pie without breaking the bank. But remember, the price tag isn’t always the best measure of a stock’s true worth. Sometimes, those seemingly expensive stocks turn out to be hidden gems waiting to shine.

Let’s take a closer look at seven undervalued stocks under $50 that could be on the verge of something big, either because they’re flying under the radar of traditional metrics or because they’re gearing up for substantial growth.

1. DigitalBridge Group (DBRG)

Ever thought about the backbone of our digital world? That’s where DigitalBridge Group (NYSE:DBRG) comes in. They specialize in digital infrastructure, including the data centers that power AI applications. With big plans to expand their data center footprint, DBRG is getting ready to meet the growing demand head-on.

Despite a forward earnings multiple of 53x, their focus on reliable fee-related earnings and solid growth in fee-earning equity under management (FEEUM) makes DBRG an intriguing choice.

Key Highlights:

• Sector: Digital Infrastructure
• Price: Under $50
• Growth Potential: Expanding data centers
• Valuation: Bold, but backed by growth targets

2. Central Garden & Pet (CENT)

Central Garden & Pet (NASDAQ:CENT) might seem like it’s been doing well lately, but there’s more to it than meets the eye. Operating in the pet and lawn & garden sectors, CENT continues to show strength in profitability. With efforts to streamline operations and reaffirmed guidance for the year, CENT’s forward P/E ratio around 18x suggests there could be more growth on the horizon, making it a compelling choice.

Key Highlights:

• Sector: Consumer Discretionary
• Price: Under $50
• Performance: Strong profitability
• Valuation: Modest forward P/E, potential for growth

3. Clean Energy Fuels (CLNE)

Leading the charge in renewable natural gas (RNG), Clean Energy Fuels (NASDAQ:CLNE) serves major clients like Amazon and FedEx. Despite facing profitability challenges and short-term RNG supply-demand dynamics, CLNE holds a solid position in a potentially massive market. With strong analyst backing and a consensus price target suggesting over 140% upside, CLNE stands out in the renewable energy sector.

Key Highlights:

• Sector: Renewable Energy
• Price: Under $50
• Market Position: Leader in renewable natural gas
• Growth Potential: Strong analyst ratings, significant upside

4. Uranium Energy (UEC)

Navigating the choppy waters of the uranium market, Uranium Energy (NYSEAMERICAN:UEC) sees light on the horizon. With the U.S. banning Russian uranium imports, demand for domestically sourced uranium is set to soar. Despite short-term revenue dips, the long-term outlook for nuclear energy remains robust. Analysts maintain strong buy ratings with significant price target upside, making UEC a stock to watch.

Key Highlights:

• Sector: Energy
• Price: Under $50
• Market Dynamics: Rising demand for domestic uranium
• Analyst Sentiment: Strong buy ratings, notable upside

5. Revolution Medicines (RVMD)

Revolution Medicines (NASDAQ:RVMD) offers a bold opportunity for investors willing to take a chance. Focused on developing treatments targeting RAS(ON) proteins in cancer therapy, RVMD has faced setbacks but remains resilient. With a deep pipeline and recent acquisition of EQRx, RVMD holds promise for future growth. Analysts are bullish, with a majority giving the stock a strong buy rating.

Key Highlights:

• Sector: Biotechnology
• Price: Under $50
• Focus: Cancer treatments targeting RAS(ON) proteins
• Analyst Confidence: Predominantly strong buy ratings