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 that could 10x and two that may have trouble.
Two Stocks Under $50 to Sell:
Chewy (CHWY)
Share Price: $33.66
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE: CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Does CHWY Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 9% over the last three years was below our standards for the consumer internet sector
- Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend
- Gross margin of 29.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
At $33.66 per share, Chewy trades at 18.2x forward EV/EBITDA. If you’re considering CHWY for your portfolio, see our FREE research report to learn more.
Trinity (TRN)
Share Price: $25.80
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Why Do We Pass on TRN?
- Annual sales declines of 2.2% for the past five years show its products and services struggled to connect with the market during this cycle
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Free cash flow margin dropped by 23.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Trinity is trading at $25.80 per share, or 14.2x forward P/E. To fully understand why you should be careful with TRN, check out our full research report (it’s free for active Edge members).
One Stock Under $50 to Watch:
Barrett (BBSI)
Share Price: $34.86
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Why Could BBSI Be a Winner?
- Annual revenue growth of 7.2% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 10.9% exceeded its revenue gains over the last five years
- ROIC punches in at 54.6%, illustrating management’s expertise in identifying profitable investments
Barrett’s stock price of $34.86 implies a valuation ratio of 14.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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-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
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