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1 Stock Under $50 on Our Buy List and 2 We Find Risky

UPST Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here is one stock under $50 that could 10x and two that may have trouble.

Two Stocks Under $50 to Sell:

Upstart (UPST)

Share Price: $47.13

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Why Are We Cautious About UPST?

  1. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $47.13 per share, Upstart trades at 4.4x forward price-to-sales. To fully understand why you should be careful with UPST, check out our full research report (it’s free for active Edge members).

Elanco (ELAN)

Share Price: $22.38

Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.

Why Does ELAN Worry Us?

  1. 2.5% annual revenue growth over the last two years was slower than its healthcare peers
  2. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
  3. Push for growth has led to negative returns on capital, signaling value destruction

Elanco is trading at $22.38 per share, or 23.3x forward P/E. Read our free research report to see why you should think twice about including ELAN in your portfolio.

One Stock Under $50 to Buy:

Distribution Solutions (DSGR)

Share Price: $28.67

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Should You Buy DSGR?

  1. Annual revenue growth of 15.1% over the past two years was outstanding, reflecting market share gains this cycle
  2. Healthy unit economics are reflected in its 33.6% gross margin and give it more money to invest in marketing and R&D
  3. Earnings per share grew by 34.8% annually over the last two years and trumped its peers

Distribution Solutions’s stock price of $28.67 implies a valuation ratio of 18x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.

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