Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one stock under $50 with huge potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Shutterstock (SSTK)
Share Price: $18.79
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Why Do We Think Twice About SSTK?
- Platform monetization efforts took a back seat over the last two years as it focused on growing its requests
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 4.7% annually
- Free cash flow margin shrank by 21.2 percentage points over the last few years, suggesting the company is consuming more capital to stay competitive
At $18.79 per share, Shutterstock trades at 3.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than SSTK.
HP (HPQ)
Share Price: $24.53
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Should You Dump HPQ?
- Sales tumbled by 1% annually over the last five years, showing market trends are working against its favor during this cycle
- Sales were less profitable over the last two years as its earnings per share fell by 3.4% annually, worse than its revenue declines
- Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
HP’s stock price of $24.53 implies a valuation ratio of 6.8x forward P/E. If you’re considering HPQ for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Buy:
Samsara (IOT)
Share Price: $38.65
One of the few public companies where famed investor Marc Andreessen is a Board member, Samsara (NYSE: IOT) provides software and hardware to track industrial equipment, assets, and fleets.
Why Will IOT Beat the Market?
- Customers view its software as mission-critical to their operations as its ARR has averaged 33.3% growth over the last year
- Expected revenue growth of 22.1% for the next year suggests its market share will rise
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Samsara is trading at $38.65 per share, or 13.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
