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 dynamic 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 best left ignored.
Two Stocks Under $50 to Sell:
Richardson Electronics (RELL)
Share Price: $12.44
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Why Should You Dump RELL?
- Annual sales declines of 10% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 91.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.9% for the last five years
Richardson Electronics is trading at $12.44 per share, or 17.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why RELL doesn’t pass our bar.
BrightView (BV)
Share Price: $12.61
An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.
Why Are We Out on BV?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.8% annually over the last two years
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- ROIC of 2% reflects management’s challenges in identifying attractive investment opportunities
At $12.61 per share, BrightView trades at 14.5x forward price-to-earnings. If you’re considering BV for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Buy:
SentinelOne (S)
Share Price: $19.86
With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.
Why Is S a Top Pick?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
SentinelOne’s stock price of $19.86 implies a valuation ratio of 6.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.