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 are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Zeta (ZETA)
Share Price: $11.59
Co-founded by former Apple CEO John Sculley, Zeta Global (NYSE: ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Why Does ZETA Worry Us?
- Net revenue retention rate of 97% shows it has a tough time retaining customers
- Gross margin of 60.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Track record of operating losses stem from its decision to pursue growth instead of profits
Zeta’s stock price of $11.59 implies a valuation ratio of 2.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ZETA.
YETI (YETI)
Share Price: $30.19
Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Does YETI Give Us Pause?
- Lackluster 7.1% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.9%
- Waning returns on capital imply its previous profit engines are losing steam
At $30.19 per share, YETI trades at 10.3x forward price-to-earnings. To fully understand why you should be careful with YETI, check out our full research report (it’s free).
Ingram Micro (INGM)
Share Price: $15.20
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Why Do We Pass on INGM?
- Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Poor free cash flow margin of 0.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Ingram Micro is trading at $15.20 per share, or 5x forward price-to-earnings. Read our free research report to see why you should think twice about including INGM in your portfolio.
Stocks We Like 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
