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.
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. Keeping that in mind, here is one stock under $50 with huge potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Alarm.com (ALRM)
Share Price: $48.87
Processing over 325 billion data points annually from more than 150 million connected devices, Alarm.com (NASDAQ:ALRM) provides cloud-based platforms that enable residential and commercial property owners to remotely monitor and control their security, video, energy, and other connected devices.
Why Should You Sell ALRM?
- Products, pricing, or go-to-market strategy may need some adjustments as its 7% average billings growth over the last year was weak
- Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Alarm.com’s stock price of $48.87 implies a valuation ratio of 2.8x forward price-to-sales. To fully understand why you should be careful with ALRM, check out our full research report (it’s free for active Edge members).
Cushman & Wakefield (CWK)
Share Price: $15.73
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Do We Steer Clear of CWK?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.1% for the last two years
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.2% for the last two years
Cushman & Wakefield is trading at $15.73 per share, or 11.6x forward P/E. Read our free research report to see why you should think twice about including CWK in your portfolio.
One Stock Under $50 to Watch:
Celsius (CELH)
Share Price: $42.55
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Do We Watch CELH?
- Annual revenue growth of 54.2% over the last three years was superb and indicates its market share is rising
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Earnings per share grew by 321% annually over the last three years and trumped its peers
At $42.55 per share, Celsius trades at 29.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum 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
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