2 Stocks to Buy With Less Than $50

One formula to generate strong returns on equity involves small amounts of money in top stocks regularly over long periods

Buying fractional s is one way to apply this strategy, but it's also possible to find attractive corporations at already-affordable prices

Here is what investors need to know

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Pfizer Pfizer's s have declined significantly over the past few years as its revenue and earnings dipped ing its coronavirus-related success

What's more, the company could face more trouble soon

The drugmaker will encounter significant patent cliffs in the next few years, particularly for Eliquis, an anticoagulant

Here are four reasons why

First, the company should succeed in rejuvenating its lineup

Pfizer has imved its pipeline over the past few years

It has also earned major apvals

Though they are not yet helping the company's revenue move in the right direction consistently, that will happen in time

Second, Pfizer has been engaged in cost-cutting efforts to help boost its bottom line

Third, Pfizer offers a terrific dividend gram

Pfizer should continue to reward loyal holders in this manner

Lastly, the stock appears to be more than reasonably valued

Pfizer's forward price-to-earnings ratio comes in at a dirt-cheap 8. 3, well below the average of 16. 1 for the healthcare industry

Pfizer's stock might not recover overnight

However, for patient, income-seeking investors, it is worth in the company right now

Over time, that investment could pay for itself

Exelixis Exelixis is a relatively small drugmaker that specializes in oncology

The company's top-selling duct is Cabometyx, which is apved to treat several kinds of cancers, most notably some forms of r and kidney cancer

Cabometyx has been a hit and has helped Exelixis' revenue and earnings move in the right direction for years

However, the bio company has become even more attractive over the past 18 months

Here are three things that happened

Had the drugmaker lost this lawsuit, it might have been disastrous for its financial results

Second, Cabometyx won another label expansion, this time for the treatment of pancreatic neuroendocrine tumors

Cabometyx has maintained an upward sales trajectory by holding a leading market for medicines of its type among patients with renal cell carcinoma (kidney cancer), and thanks to label expansions

If it's not broken, don't fix it

Third, Exelixis recently announced positive top-line results for its next-gen cancer medicine, zanzalintinib, in a phase 3 study that enrolled patients with metastatic colorectal cancer

Although colorectal cancer is highly treatable when caught early, as Exelixis points out, five-year survival rates drop once it has metastasized, meaning there is an unmet need in that niche

The bio's zanzalintinib could help fill that need and help decrease the company's exposure to Cabometyx, all in one fell swoop

With all that going on, the future looks brighter than ever for Exelixis

In the stock and holding on to it for five years or more could lead to solid returns

Sper Junior Bakiny has positions in Exelixis

The Motley Fool has positions in and recommends Exelixis and Pfizer

The Motley Fool has a disclosure policy.