The price of a stock matters. Nvidia (NASDAQ:NVDA) just announced a 10-for-1 stock split as its share price rose above $1,000 for the first time. In announcing the stock split, which will bring the share price down to about $100 a share, the company said that the lower price will make it “more accessible to employees and investors.” Similarly, Chipotle Mexican Grill (NYSE:CMG) has announced a 50-for-1 stock split after its share price crested above $3,000. Investors often want to avoid the obstacle of shares being too expensive to purchase which is why they hunt for under $50 stocks.
The high price of a stock can prove to be a barrier to entry for many investors who may not have a lot of capital but want to grow their money nonetheless. The good news is there are plenty of stocks that can be purchased for less than $50. For investors looking to start small, buying shares of great companies at affordable prices is often the best course of action. Here are three under $50 stocks to buy in May 2024.
General Motors (GM)
Detroit automaker General Motors’ (NYSE:GM) stock is on an upswing. Year-to-date (YTD), GM stock has risen 22%. That brings its 12 month gain to 37%. Despite the rise, investors can still buy shares of General Motors for around $44 each. The stock has been marching higher ever since GM raised its 2024 guidance after beating Wall Street expectations across the board with its first-quarter earnings.
General Motors reported Q1 earnings per share (EPS) of $2.62 versus $2.15 that was expected among analysts. Revenue came in at $43.01 billion compared to $41.92 billion that was estimated. Sales rose 7.6% from a year earlier.
Owing to the strong print, GM raised its guidance, saying it expects earnings of $9 to $10 a share, up from a previous range of $8.50 to $9.50 a share. Strong North American sales, particularly of pick-up trucks, is largely responsible for the growth at GM.
Canada Goose Holdings (GOOS)
Canada Goose Holdings (NYSE:GOOS) has seen a big earnings turnaround. The maker of winter parkas saw its stock jump 16% higher after it beat analyst expectations for its financial results. The company beat Wall Street forecasts across the board as its sales recovered in the key markets of China and the U.S. following months of declines. Canada Goose reported EPS of 19 cents CAD versus 7 cents CAD that was forecast among analysts. Revenue totaled $358 million CAD, beating Wall Street expectations of $315.5 million CAD.
The luxury parka maker’s revenue in the entire Asia-Pacific region rose 29.6% in the quarter. In North America, sales grew 24.5% over the previous year after a 14% decline in the previous quarter. Management singled out China as a bright spot, noting that luxury brands are making a comeback in the nation of 1.4 billion people. The strong results come after Canada Goose announced in March of this year that it plans to cut 17% of its global workforce amid a prolonged slowdown in sales of luxury items.
GOOS stock is now up 23% this year, though its shares can be bought for only $14.22 each.
Palantir Technologies (PLTR)
For a fast growing tech stock that can be purchased for less than $50, look to Palantir Technologies (NYSE:PLTR). Investors can buy PLTR stock for only $21 a share, and the stock has been on a tear, rising 72% over the last 12 months, including a 27% gain since January. The data analytics company continues to post strong financial results that show continued profitability. For Q1 of this year, Palantir announced EPS of 8 cents, matching Wall Street expectations. The company has posted a profit for six consecutive quarters.
Revenue in Q1 totaled $634 million versus estimates of $625 million. Sales were up 21% from a year ago. Earlier this year, Palantir signed a $178 million contract with the American military to develop a next-generation sensor station. The company also ran more than 650 “bootcamps” with prospective customers during Q1, allowing them to get hands-on time with the company’s data analytics technology before deciding to make a purchase.
Since going public in 2020, PLTR stock has increased 128%.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.