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2 Stocks Under $50 to Keep an Eye On and 1 We Find Risky

KDP Cover Image

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.

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 are two stocks under $50 with massive upside potential and one that may have trouble.

One Stock Under $50 to Sell:

Keurig Dr Pepper (KDP)

Share Price: $25.80

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Is KDP Not Exciting?

  1. Sizable revenue base leads to growth challenges as its 5.9% annual revenue increases over the last three years fell short of other consumer staples companies
  2. Efficiency has decreased over the last year as its operating margin fell by 6.1 percentage points
  3. Underwhelming 5.8% return on capital reflects management’s difficulties in finding profitable growth opportunities

Keurig Dr Pepper’s stock price of $25.80 implies a valuation ratio of 12.3x forward P/E. Dive into our free research report to see why there are better opportunities than KDP.

Two Stocks Under $50 to Watch:

Planet Labs (PL)

Share Price: $15.48

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Why Could PL Be a Winner?

  1. Market share has increased this cycle as its 22.3% annual revenue growth over the last five years was exceptional
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 34.2% annually, topping its revenue gains
  3. Historical investments are beginning to pay off as its returns on capital are growing

At $15.48 per share, Planet Labs trades at 12,856.8x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Paymentus (PAY)

Share Price: $32.48

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Why Is PAY a Top Pick?

  1. Impressive 36.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 134% outpaced its revenue gains

Paymentus is trading at $32.48 per share, or 52.4x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 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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