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1 Stock Under $50 on Our Buy List and 2 Facing Headwinds

DBX 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 is one stock under $50 with massive upside potential and two that could be down big.

Two Stocks Under $50 to Sell:

Dropbox (DBX)

Share Price: $30.86

Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ: DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.

Why Should You Dump DBX?

  1. Billings didn’t grow over the last year, suggesting the company struggled to sell its software and might have to lower prices to stimulate growth
  2. Sales are projected to tank by 1.3% over the next 12 months as demand evaporates
  3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.9 percentage points

Dropbox’s stock price of $30.86 implies a valuation ratio of 3.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DBX.

Fastenal (FAST)

Share Price: $40.67

Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Does FAST Fall Short?

  1. Muted 4.8% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Performance over the past two years shows its incremental sales were less profitable, as its 3.7% annual earnings per share growth trailed its revenue gains
  3. 1.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Fastenal is trading at $40.67 per share, or 35.2x forward P/E. If you’re considering FAST for your portfolio, see our FREE research report to learn more.

One Stock Under $50 to Buy:

Aris Water (ARIS)

Share Price: $23.60

Primarily serving the oil and gas industry, Aris Water (NYSE: ARIS) is a provider of water handling and recycling solutions.

Why Will ARIS Beat the Market?

  1. Annual revenue growth of 23.8% over the last five years was superb and indicates its market share increased during this cycle
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 56.2% annually, topping its revenue gains
  3. Free cash flow margin jumped by 38.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $23.60 per share, Aris Water trades at Is now a good 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 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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