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2 Stocks Under $50 with Solid Fundamentals and 1 We Ignore

DKNG 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 are two stocks under $50 with massive upside potential and one best left ignored.

One Stock Under $50 to Sell:

Cracker Barrel (CBRL)

Share Price: $26.33

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Why Is CBRL Risky?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Estimated sales decline of 2.5% for the next 12 months implies a challenging demand environment
  3. Incremental sales over the last six years were much less profitable as its earnings per share fell by 16.5% annually while its revenue grew

At $26.33 per share, Cracker Barrel trades at 27x forward P/E. Read our free research report to see why you should think twice about including CBRL in your portfolio.

Two Stocks Under $50 to Watch:

DraftKings (DKNG)

Share Price: $28.99

Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.

Why Does DKNG Catch Our Eye?

  1. Rise in monthly unique players indicates high demand for its offerings
  2. Notable projected revenue growth of 26% for the next 12 months hints at market share gains
  3. Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 16.5% annually

DraftKings’s stock price of $28.99 implies a valuation ratio of 25.2x 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.

Home Bancshares (HOMB)

Share Price: $26.92

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE: HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Why Are We Fans of HOMB?

  1. Annual revenue growth of 9.4% over the past five years was outstanding, reflecting market share gains this cycle
  2. Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a top-tier net interest margin of 4.4%
  3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Home Bancshares is trading at $26.92 per share, or 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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-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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