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 are two stocks under $50 with huge potential and one that may have trouble.
One Stock Under $50 to Sell:
Cathay General Bancorp (CATY)
Share Price: $49.33
Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.
Why Are We Cautious About CATY?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.8% annually over the last two years
- Net interest income trends were unexciting over the last five years as its 5.4% annual growth was below the typical banking firm
- Net interest margin dropped by 48.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
Cathay General Bancorp is trading at $49.33 per share, or 1.1x forward P/B. If you’re considering CATY for your portfolio, see our FREE research report to learn more.
Two Stocks Under $50 to Watch:
OFG Bancorp (OFG)
Share Price: $43.38
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
Why Will OFG Outperform?
- Differentiated product suite is reflected in its Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 5.6%
- Non-interest operating profits increased over the last four years as the firm gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last two years enabled its annual earnings per share growth of 6.3% to outpace its revenue gains
At $43.38 per share, OFG Bancorp trades at 1.4x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Hamilton Insurance Group (HG)
Share Price: $24.62
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Could HG Be a Winner?
- Market share has increased this cycle as its 49.7% annual revenue growth over the last two years was exceptional
- Market penetration was impressive this cycle as its net premiums earned expanded by 26% annually over the last two years
- Combined ratio improvement of 32.5 percentage points over the last two years demonstrates its ability to scale efficiently
Hamilton Insurance Group’s stock price of $24.62 implies a valuation ratio of 0.9x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 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-micro-cap company Kadant (+351% 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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