Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
Central Garden & Pet (CENT)
Share Price: $36.28
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Why Do We Steer Clear of CENT?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Earnings growth underperformed the sector average over the last three years as its EPS grew by just 1.5% annually
At $36.28 per share, Central Garden & Pet trades at 16.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why CENT doesn’t pass our bar.
Insteel (IIIN)
Share Price: $26.49
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete.
Why Is IIIN Not Exciting?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 18.8% annually over the last two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
Insteel’s stock price of $26.49 implies a valuation ratio of 18.6x forward price-to-earnings. Read our free research report to see why you should think twice about including IIIN in your portfolio.
One Stock Under $50 to Buy:
Semrush (SEMR)
Share Price: $10.80
Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies optimize their search engine and content marketing efforts.
Why Are We Bullish on SEMR?
- Average billings growth of 23.2% over the last year enhances its liquidity and shows there is steady demand for its products
- Forecasted revenue growth of 19.8% for the next 12 months indicates its momentum over the last three years is sustainable
- Prominent and differentiated software leads to a premier gross margin of 82.6%
Semrush is trading at $10.80 per share, or 3.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out 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 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.