Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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:
Ameresco (AMRC)
Share Price: $32.50
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.
Why Does AMRC Worry Us?
- High input costs result in an inferior gross margin of 16.5% that must be offset through higher volumes
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Ameresco’s stock price of $32.50 implies a valuation ratio of 34.1x forward P/E. To fully understand why you should be careful with AMRC, check out our full research report (it’s free for active Edge members).
Amphastar Pharmaceuticals (AMPH)
Share Price: $26.01
Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ: AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.
Why Does AMPH Give Us Pause?
- Modest revenue base of $723.3 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Costs have risen faster than its revenue over the last two years, causing its adjusted operating margin to decline by 4.3 percentage points
Amphastar Pharmaceuticals is trading at $26.01 per share, or 7.8x forward P/E. Read our free research report to see why you should think twice about including AMPH in your portfolio.
One Stock Under $50 to Buy:
EXL (EXLS)
Share Price: $40.50
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Is EXLS a Top Pick?
- Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 24.4% to outpace its revenue gains
- Industry-leading 21% return on capital demonstrates management’s skill in finding high-return investments
At $40.50 per share, EXL trades at 19.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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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