In this piece, we will take a look at the 15 best stocks under $100 to buy now. If you want to skip our overview of the current stock market climate, then you can take a look at the 5 Best Stocks Under $100 To Buy Now.
As the fourth quarter of the 2023 earnings season slowed down in February 2024, stock market investor attention reverted to interest rates, inflation, and the economy. The three indicators have worked in tandem to determine investor sentiment over the course of the past couple of years, and right now, it appears that inflation might take a bit longer to stamp out. Additionally, the latest update on the economic front saw a downward revision to the fourth quarter – an unsurprising development considering the broader global slowdown and the high interest rates that have made it harder for U.S. businesses to focus on growth.
February 2024 is coming to a sharp end as investors wait for the latest personal consumption expenditure (PCE) index to determine the Federal Reserve’s mood when it comes to reducing interest rates. The PCE data for January will let the central bank decide whether it needs to keep interest rates higher for longer, and heading into its meeting, officials will be acutely aware of the fact that the U.S. GDP growth of 3.3% in the fourth quarter was revised downwards to 3.2%. While the scale of the revision is comforting, it nevertheless demonstrates that the effect of interest rates is continuing to creep up on the economy as more data becomes available for robust estimates.
Yet, the fact that other major economies such as the U.K., Germany, and China aren’t doing so well can nevertheless see a central bank that feels more comfortable with higher interest rates than Wall Street would like it to be. Heading into the PCE data release, the NASDAQ and S&P shed 0.55% and 0.17%, respectively, while the Dow remained flat. As indexes drop, and despite the fact that it can potentially create room for higher rates, the economy is nevertheless doing well; an important consideration when we remember the worries of a recession in late 2022 and the depressed stock market environment during such a downturn.
On this front, a fresh report from Barclays PLC (NYSE:BCS) sheds more light on what small businesses and stock market investors can expect from the U.S. economy over the course of 2024. According to the bank’s chief U.S. economist Marc Giannoni, sizeable labor growth through avenues such as immigration can end up boosting American productivity for years. Should this occur, then the central bank might very well upgrade a key metric that is known in economic circles as the neutral interest rate. While most folks are concerned about their home loan interests, officials at the Fed spend countless hours wondering what the interest rate can be to allow the U.S. economy to grow and not cause inflationary spikes.
A higher neutral rate means that officials can keep rates high and not worry about any impacts on growth. As the Minneapolis Federal Reserve president Neel Kashkari wrote in February:
This constellation of data suggests to me that the current stance of monetary policy, which, again, includes the current level and expected paths of the federal funds rate and balance sheet, may not be as tight as we would have assumed given the low neutral rate environment that existed before the pandemic. It is possible, at least during the post-pandemic recovery period, that the policy stance that represents neutral has increased. The implication of this is that, I believe, it gives the FOMC time to assess upcoming economic data before starting to lower the federal funds rate, with less risk that too-tight policy is going to derail the economic recovery.
With these details in mind, let’s take a look at some best stocks under $100 to buy now. A couple of top names are Alibaba Group Holding Limited (NYSE:BABA), Uber Technologies, Inc. (NYSE:UBER), and Micron Technology, Inc. (NASDAQ:MU).
Our Methodology
To make our list of the best stocks under $100, we ranked the 40 most valuable stocks with share prices below $100 by market capitalization by the number of hedge funds that had bought the shares in Q4 2023 and chose those with the highest investors.
For these best stocks under $100, we used we used hedge fund sentiment. 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 Best Stocks Under $100 To Buy Now
15. The Coca-Cola Company (NYSE:KO)
Number of Q4 2023 Hedge Fund Shareholders: 62
Latest Share Price: $60.40
The Coca-Cola Company (NYSE:KO) is one of the biggest carbonated beverage companies in the world. A top consumer defensive stock, the firm is busy expanding its non sugary offerings as it added water and tonics to its portfolio in February 2024.
During December 2023, 62 out of the 933 hedge funds part of Insider Monkey’s database were the firm’s shareholders. The Coca-Cola Company (NYSE:KO)’s largest investor in our database is Warren Buffett’s Berkshire Hathaway due to its $23.5 billion investment.
Along with Uber Technologies, Inc. (NYSE:UBER), Alibaba Group Holding Limited (NYSE:BABA), and Micron Technology, Inc. (NASDAQ:MU), The Coca-Cola Company (NYSE:KO is a top stock to buy under $100.
14. NextEra Energy, Inc. (NYSE:NEE)
Number of Q4 2023 Hedge Fund Shareholders: 65
Latest Share Price: $55.04
NextEra Energy, Inc. (NYSE:NEE) is a sizeable American utility that generates tens of thousands of megawatts of electricity. It’s one of the top rated stocks under $100 on our list, as not only are the shares rated Strong Buy on average, but the average share price target of $71.57 also prices in a nice upside.
During last year’s fourth quarter, 65 out of the 933 hedge funds profiled by Insider Monkey had invested in NextEra Energy, Inc. (NYSE:NEE). Josh Overdeck and David Siegel’s Two Sigma Advisors owned the biggest stake which was worth $237 million.
13. CVS Health Corporation (NYSE:CVS)
Number of Q4 2023 Hedge Fund Shareholders: 67
Latest Share Price: $75.19
CVS Health Corporation (NYSE:CVS) is one of the biggest pharmacy retailers in the U.S. The firm was at the center of the news in February 2024 when the FDA issued a recall for eye ointments that it, along with other mega retailers such as Walmart, were recalled due to infection risks.
By the end of 2023’s final quarter, 67 out of the 933 hedge funds part of Insider Monkey’s database had bought and owned the firm’s shares. CVS Health Corporation (NYSE:CVS)’s largest investor among these is Paul Marshall and Ian Wace’s Marshall Wace LLP as it owns $382 million worth of shares.
12. KKR & Co. Inc. (NYSE:KKR)
Number of Q4 2023 Hedge Fund Shareholders: 68
Latest Share Price: $95.85
KKR & Co. Inc. (NYSE:KKR) is a global asset management company headquartered in the world’s financial capital, New York City. Amidst a hyped up merger season, February 2024 has been a busy month for the firm, as while rumors claim that it is considering divesting a $4 billion investment in India, it is close to buying a business for the same price from a semiconductor firm Broadcom.
As of December 2023 end, 68 out of the 933 hedge funds surveyed by Insider Monkey had bought a stake in KKR & Co. Inc. (NYSE:KKR). Natixis Global Asset Management’s Harris Associates was the biggest shareholder through its $1.7 billion investment.
11. Shopify Inc. (NYSE:SHOP)
Number of Q4 2023 Hedge Fund Shareholders: 68
Latest Share Price: $75.56
Shopify Inc. (NYSE:SHOP) is the popular eCommerce platform headquartered in Ottawa, Ontario, Canada. One of Canada’s most valuable companies, not only is it a stock under $100 that hedge funds are buying, but the firm has also been performing well financially as it has beaten analyst EPS estimates in all four of its latest quarters.
Insider Monkey dug through 933 hedge fund holdings for Q4 2023 and found that 68 had invested in the firm. Shopify Inc. (NYSE:SHOP)’s largest investor among these is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital as it owns 20.9 million shares that are worth $1.6 billion.
10. Philip Morris International Inc. (NYSE:PM)
Number of Q4 2023 Hedge Fund Shareholders: 68
Latest Share Price: $90.42
Philip Morris International Inc. (NYSE:PM) is one of the biggest tobacco companies in the world. Along with other big tobacco firms, it scored quite a win in February 2024 when New Zealand reversed a highly celebrated law to outlaw cigarette sales to those born after 2008.
By the end of last year’s fourth quarter, 68 out of the 933 hedge funds covered by Insider Monkey’s research were Philip Morris International Inc. (NYSE:PM)’s shareholders. Terry Smith’s Fundsmith LLP was the biggest stakeholder courtesy of its $1.4 billion investment.
9. Boston Scientific Corporation (NYSE:BSX)
Number of Q4 2023 Hedge Fund Shareholders: 71
Latest Share Price: $66.99
Boston Scientific Corporation (NYSE:BSX) is a medical devices company headquartered in Marlborough, Massachusetts. One of the leading companies in its industry, it managed to raise billions of dollars in debt in less than a week in February 2024. Additionally, Boston Scientific Corporation (NYSE:BSX)’s shares are rated Strong Buy on average.
Insider Monkey’s fourth quarter of 2023 survey of 933 hedge fund holdings revealed that 71 were the firm’s shareholders. Boston Scientific Corporation (NYSE:BSX)’s largest investor in our database is Ken Griffin’s Citadel Investment Group as it holds a $519 million stake.
8. Wells Fargo & Company (NYSE:WFC)
Number of Q4 2023 Hedge Fund Shareholders: 72
Latest Share Price: $54.72
Wells Fargo & Company (NYSE:WFC) is a household name. Despite its age, it is continuing to keep emerging markets in mind, and on this front, it announced a partnership with an electric vehicle charging company to enable businesses to set up EV charging stations.
Insider Monkey dug through 933 hedge fund portfolios for their shareholdings during last year’s December quarter to find 72 Wells Fargo & Company (NYSE:WFC) investors. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was the biggest shareholder courtesy of its $1.5 billion investment.
7. The Charles Schwab Corporation (NYSE:SCHW)
Number of Q4 2023 Hedge Fund Shareholders: 81
Latest Share Price: $65.65
The Charles Schwab Corporation (NYSE:SCHW) is another sizeable bank. It was one of Baron Funds’s top performing stocks in the fourth quarter, with the fund’s latest investor letter noting that The Charles Schwab Corporation (NYSE:SCHW) delivered double digit returns in the quarter.
In the same period, 81 out of the 933 hedge funds part of Insider Monkey’s database were the firm’s shareholders. The Charles Schwab Corporation (NYSE:SCHW) ‘s largest shareholder out of these was Natixis Global Asset Management’s Harris Associates as it owned a $1.3 billion stake.
6. Walmart Inc. (NYSE:WMT)
Number of Q4 2023 Hedge Fund Shareholders: 85
Latest Share Price: $59.62
Walmart Inc. (NYSE:WMT) is the biggest brick and mortar retailer in the world. Its heft also means that even the smallest disruptions can have a sizeable impact, and this was also the case in February 2024 when a computer glitch affected thousands of stores.
By the end of Q4 2023, 85 out of the 933 hedge funds profiled by Insider Monkey had bought Walmart Inc. (NYSE:WMT)’s shares. Ken Fisher’s Fisher Asset Management was the biggest investor through its $1.5 billion investment.
Alibaba Group Holding Limited (NYSE:BABA), Walmart Inc. (NYSE:WMT), Uber Technologies, Inc. (NYSE:UBER), and Micron Technology, Inc. (NASDAQ:MU) are some top stocks under $100.
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Disclosure. None. 15 Best Stocks Under $100 To Buy Now was initially published on Insider Monkey.