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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with massive upside potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Carriage Services (CSV)
Share Price: $42.45
Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.
Why Do We Steer Clear of CSV?
- Annual revenue growth of 5.7% over the last five years was below our standards for the consumer discretionary sector
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 12.6% for the last two years
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
At $42.45 per share, Carriage Services trades at 12.6x forward P/E. If you’re considering CSV for your portfolio, see our FREE research report to learn more.
Capital Southwest (CSWC)
Share Price: $21.33
Originally founded in 1961 as a venture capital investor that helped launch Texas Instruments, Capital Southwest (NASDAQ: CSWC) is a business development company that provides debt and equity financing to middle-market companies primarily in the United States.
Why Does CSWC Give Us Pause?
- Earnings per share fell by 5.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
Capital Southwest is trading at $21.33 per share, or 9.4x forward P/E. Read our free research report to see why you should think twice about including CSWC in your portfolio.
One Stock Under $50 to Watch:
Confluent (CFLT)
Share Price: $21.74
Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ: CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.
Why Does CFLT Stand Out?
- Billings growth has averaged 26.1% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Gross margin of 74.1% provides the financial cushion needed to invest in marketing and develop new products
Confluent’s stock price of $21.74 implies a valuation ratio of 5.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full 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 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 Exlservice (+354% 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.
