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.
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 that could 10x and two best left ignored.
Two Stocks Under $50 to Sell:
FormFactor (FORM)
Share Price: $36.45
With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.
Why Should You Dump FORM?
- 4.4% annual revenue growth over the last five years was slower than its semiconductor peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.4%
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.4 percentage points
FormFactor is trading at $36.45 per share, or 24.1x forward P/E. Read our free research report to see why you should think twice about including FORM in your portfolio.
Byrna (BYRN)
Share Price: $21.73
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Why Does BYRN Worry Us?
- Poor expense management has led to operating margin losses
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Byrna’s stock price of $21.73 implies a valuation ratio of 48.9x forward EV-to-EBITDA. If you’re considering BYRN for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Buy:
EXL (EXLS)
Share Price: $42.76
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Is EXLS a Good Business?
- Annual revenue growth of 13.8% over the past five years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.8% exceeded its revenue gains over the last five years
- Strong free cash flow margin of 11.5% enables it to reinvest or return capital consistently
At $42.76 per share, EXL trades at 22.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 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 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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