1 Stock Under $50 Worth Your Attention and 2 We Find Risky

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $50 that could 10x and two best left ignored.

Two Stocks Under $50 to Sell:

Sinclair (SBGI)

Share Price: $14.14

With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ:SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.

Why Should You Dump SBGI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 9.2% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Free cash flow margin shrank by 8.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Sinclair’s stock price of $14.14 implies a valuation ratio of 1.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SBGI doesn’t pass our bar.

FARO (FARO)

Share Price: $44

Launched by two PhD students in a garage, FARO (NASDAQ:FARO) provides 3D measurement and imaging systems for the manufacturing, construction, engineering, and public safety industries.

Why Is FARO Not Exciting?

1. Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Persistent operating margin losses suggest the business manages its expenses poorly
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

At $44 per share, FARO trades at 39.6x forward P/E. If you’re considering FARO for your portfolio, see our FREE research report to learn more.

One Stock Under $50 to Buy:

Magnite (MGNI)

Share Price: $25.23

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Is MGNI a Top Pick?

1. Annual revenue growth of 33% over the last five years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 22.8% annually, topping its revenue gains
3. Strong free cash flow margin of 23.3% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business

Magnite is trading at $25.23 per share, or 27.4x forward P/E. 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 April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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-small-cap company Comfort Systems (+782% 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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