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. That said, here is one stock under $50 with huge potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Wayfair (W)
Share Price: $38.22
Founded in 2002 by Niraj Shah, Wayfair (NYSE: W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany.
Why Are We Out on W?
- Struggled with new customer acquisition as its active customers averaged 2.1% declines
- High servicing costs result in an inferior gross margin of 30.5% that must be offset through higher volumes
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $38.22 per share, Wayfair trades at 9.6x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than W.
Sweetgreen (SG)
Share Price: $14.74
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE: SG) is a casual quick service chain known for its healthy salads and bowls.
Why Does SG Fall Short?
- Persistent operating losses suggest the business manages its expenses poorly
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Sweetgreen’s stock price of $14.74 implies a valuation ratio of 40.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SG doesn’t pass our bar.
One Stock Under $50 to Buy:
Remitly (RELY)
Share Price: $23
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Should You Buy RELY?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 37.3% annually over the last two years
- Additional sales over the last three years increased its profitability as the 74% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 35.6 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Remitly is trading at $23 per share, or 22.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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 176% over the last five years.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
