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3 Stocks Under $50 We’re Skeptical Of

TENB Cover Image

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.

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 three stocks under $50 to swipe left on and some alternatives you should look into instead.

Tenable (TENB)

Share Price: $29.99

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Why Are We Hesitant About TENB?

  1. Average billings growth of 10.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Estimated sales growth of 7.5% for the next 12 months implies demand will slow from its two-year trend
  3. Operating margin improvement of 3.2 percentage points over the last year demonstrates its ability to scale efficiently

Tenable’s stock price of $29.99 implies a valuation ratio of 3.5x forward price-to-sales. Check out our free in-depth research report to learn more about why TENB doesn’t pass our bar.

Amphastar Pharmaceuticals (AMPH)

Share Price: $26.58

Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ: AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.

Why Does AMPH Fall Short?

  1. Modest revenue base of $722.7 million gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend

At $26.58 per share, Amphastar Pharmaceuticals trades at 8.1x forward P/E. To fully understand why you should be careful with AMPH, check out our full research report (it’s free for active Edge members).

Ibotta (IBTA)

Share Price: $29.38

Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.

Why Is IBTA Not Exciting?

  1. Subscale operations are evident in its revenue base of $367.6 million, meaning it has fewer distribution channels than its larger rivals
  2. Forecasted revenue decline of 10.1% for the upcoming 12 months implies demand will fall off a cliff

Ibotta is trading at $29.38 per share, or 7.6x forward EV-to-EBITDA. If you’re considering IBTA for your portfolio, see our FREE research report to learn more.

Stocks We Like 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 5 Growth Stocks for this month. 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

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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