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1 Stock Under $50 Worth Investigating and 2 We Question

BOX 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.

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:

Box (BOX)

Share Price: $31.67

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Why Are We Cautious About BOX?

  1. Products, pricing, or go-to-market strategy may need some adjustments as its 10% average billings growth over the last year was weak
  2. Estimated sales growth of 7.9% for the next 12 months is soft and implies weaker demand
  3. Static operating margin over the last year shows it couldn’t become more efficient

Box is trading at $31.67 per share, or 3.9x forward price-to-sales. Read our free research report to see why you should think twice about including BOX in your portfolio.

Karat Packaging (KRT)

Share Price: $24.51

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Why Are We Hesitant About KRT?

  1. 4.2% annual revenue growth over the last two years was slower than its industrials peers
  2. Issuance of new shares over the last two years caused its earnings per share to fall by 2.9% annually while its revenue grew
  3. Low free cash flow margin of 5.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $24.51 per share, Karat Packaging trades at 15.7x forward P/E. Check out our free in-depth research report to learn more about why KRT doesn’t pass our bar.

One Stock Under $50 to Watch:

Napco (NSSC)

Share Price: $43.76

Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ: NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Why Does NSSC Catch Our Eye?

  1. Market share has increased this cycle as its 12.4% annual revenue growth over the last five years was exceptional
  2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
  3. Rising returns on capital show management is finding more attractive investment opportunities

Napco’s stock price of $43.76 implies a valuation ratio of 35.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

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 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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