Stocks

3 Promising Stocks Under $50 Poised to Surpass the S&P 500

Published March 25, 2024

For many investors, mirroring the performance of the S&P 500 is a satisfactory strategy. The established index historically yields an average annual return of about 10%, offering a degree of stability and predictability. However, some market participants are on the hunt for opportunities that might generate returns at a more rapid pace than the S&P 500. For those with a higher risk tolerance, there are several stocks trading under $50 that have the potential to double in value more swiftly than the broader market.

Dynatrace, Inc. DT

Dynatrace, Inc. DT operates in the software intelligence field, focusing particularly on dynamic multi-cloud environments. Headquartered in Waltham, Massachusetts, Dynatrace offers a comprehensive suite of tools essential for modern businesses operating in the complex cloud ecosystem. Given the accelerating shift towards cloud computing, DT stands out as a potential high-growth opportunity with promise to outshine the S&P 500's gains.

Seadrill Limited SDRL

Seadrill Limited SDRL, a significant player in the global offshore drilling market, provides crucial services to the oil and gas sector. The Bermuda-headquartered company has experienced the ups and downs of the volatile energy market but has remained poised to capitalize on the increasing demand for drilling services. With strategic initiatives and restructuring efforts, SDRL is potentially well-placed to benefit from future industry recoveries, making it a candidate to outperform the more gradual climb of the S&P 500.

United Airlines Holdings, Inc. UAL

United Airlines Holdings, Inc. UAL, the company behind the major airline United Airlines, has a significant presence in the aviation industry. Based in Chicago's Willis Tower, UAL has weathered the challenges that have faced airlines, yet the prospects for travel recovery as global economies rebound could paint a favourable picture for the company's growth. Its position suggests a potential rebound that could soar faster than the S&P 500's average rises.

Investment, Growth, Potential