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1 Stock Under $50 for Long-Term Investors and 2 We Turn Down

TOST 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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here is one stock under $50 with huge potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Topgolf Callaway (MODG)

Share Price: $10.56

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE: MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Do We Steer Clear of MODG?

  1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.3% annually while its revenue grew
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $10.56 per share, Topgolf Callaway trades at 4.1x forward EV-to-EBITDA. To fully understand why you should be careful with MODG, check out our full research report (it’s free for active Edge members).

Azenta (AZTA)

Share Price: $29.92

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Should You Dump AZTA?

  1. Annual sales declines of 7.2% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
  3. Free cash flow margin shrank by 22.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Azenta is trading at $29.92 per share, or 41.4x forward P/E. Dive into our free research report to see why there are better opportunities than AZTA.

One Stock Under $50 to Watch:

Toast (TOST)

Share Price: $36.73

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Why Does TOST Stand Out?

  1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
  2. Projected revenue growth of 21.1% for the next 12 months suggests its momentum from the last two years will persist

Toast’s stock price of $36.73 implies a valuation ratio of 3.3x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 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 (+1,326% between June 2020 and June 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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