The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
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 best left ignored.
Two Stocks Under $50 to Sell:
Simply Good Foods (SMPL)
Share Price: $34.14
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ: SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Why Are We Wary of SMPL?
- Modest revenue base of $1.41 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Free cash flow margin shrank by 3.1 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- ROIC of 8% reflects management’s challenges in identifying attractive investment opportunities
Simply Good Foods is trading at $34.14 per share, or 17.1x forward P/E. If you’re considering SMPL for your portfolio, see our FREE research report to learn more.
Sphere Entertainment (SPHR)
Share Price: $37.86
Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.
Why Do We Steer Clear of SPHR?
- Muted 2.4% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Negative free cash flow raises questions about the return timeline for its investments
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $37.86 per share, Sphere Entertainment trades at 7.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SPHR in your portfolio.
One Stock Under $50 to Watch:
DoubleVerify (DV)
Share Price: $13.58
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE: DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.
Why Do We Like DV?
- Software is difficult to replicate at scale and leads to a premier gross margin of 82.3%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Excellent operating margin of 12.1% highlights the efficiency of its business model
DoubleVerify’s stock price of $13.58 implies a valuation ratio of 3.1x forward price-to-sales. Is now a good time to buy? 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 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.
