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:
Progyny (PGNY)
Share Price: $20.89
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Does PGNY Fall Short?
- Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 3% for the next 12 months implies demand will slow from its two-year trend
- Negative returns on capital show that some of its growth strategies have backfired
Progyny’s stock price of $20.89 implies a valuation ratio of 12.7x forward P/E. Check out our free in-depth research report to learn more about why PGNY doesn’t pass our bar.
MGIC Investment (MTG)
Share Price: $27.47
Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE: MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.
Why Are We Cautious About MTG?
- Annual net premiums earned declines of 1.1% for the past four years show its policy sales struggled during this cycle
- Operational productivity has decreased over the last two years as its combined ratio worsened by 20 percentage points
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.8% annually
At $27.47 per share, MGIC Investment trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including MTG in your portfolio.
One Stock Under $50 to Buy:
Bowhead Specialty (BOW)
Share Price: $36.12
Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE: BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.
Why Should You Buy BOW?
- Impressive 41.5% annual net premiums earned growth over the last one years indicates it’s winning market share this cycle
- Earnings per share grew by 44% annually over the last two years, massively outpacing its peers
- Annual book value per share growth of 85.7% over the past two years was outstanding, reflecting strong capital accumulation this cycle
Bowhead Specialty is trading at $36.12 per share, or 2.8x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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
