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1 Stock Under $50 Worth Investigating and 2 We Question

UPST Cover Image

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $50 with massive upside potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Upstart (UPST)

Share Price: $46.64

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Why Does UPST Fall Short?

  1. Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Upstart’s stock price of $46.64 implies a valuation ratio of 4x forward price-to-sales. Read our free research report to see why you should think twice about including UPST in your portfolio.

Golden Entertainment (GDEN)

Share Price: $22.54

Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.

Why Are We Cautious About GDEN?

  1. Sales tumbled by 3.3% annually over the last five years, showing consumer trends are working against its favor
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Poor free cash flow margin of 3.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Golden Entertainment is trading at $22.54 per share, or 30.7x forward P/E. To fully understand why you should be careful with GDEN, check out our full research report (it’s free for active Edge members).

One Stock Under $50 to Watch:

Perdoceo Education (PRDO)

Share Price: $35.11

Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ: PRDO) is an educational services company that specializes in postsecondary education.

Why Does PRDO Catch Our Eye?

  1. Highly efficient business model is illustrated by its impressive 24.7% operating margin
  2. Robust free cash flow margin of 23.7% gives it many options for capital deployment
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $35.11 per share, Perdoceo Education trades at 21.7x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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