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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two best left ignored.
Two Stocks Under $50 to Sell:
Intel (INTC)
Share Price: $20.79
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Pass on INTC?
- Sales tumbled by 5.9% annually over the last five years, showing market trends are working against its favor during this cycle
- Operating margin declined by 52.4 percentage points over the last five years as its sales cratered
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 31.3 percentage points
At $20.79 per share, Intel trades at 22x forward price-to-earnings. Read our free research report to see why you should think twice about including INTC in your portfolio.
American Airlines (AAL)
Share Price: $11.76
One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Is AAL Risky?
- Performance surrounding its revenue passenger miles has lagged its peers
- Earnings per share fell by 17.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
American Airlines’s stock price of $11.76 implies a valuation ratio of 4.7x forward price-to-earnings. To fully understand why you should be careful with AAL, check out our full research report (it’s free).
One Stock Under $50 to Buy:
Liquidity Services (LQDT)
Share Price: $29.85
Powering what it calls the "circular economy" by giving unwanted items a second life, Liquidity Services (NASDAQ:LQDT) operates online marketplaces that connect buyers and sellers of surplus assets, from consumer returns to industrial equipment to government property.
Why Is LQDT a Top Pick?
- Annual revenue growth of 20.4% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 23.5% to outpace its revenue gains
- Returns on capital are growing as management capitalizes on its market opportunities
Liquidity Services is trading at $29.85 per share, or 17.1x forward EV-to-EBITDA. 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 5 Growth Stocks for this month. 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
