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:
Academy Sports (ASO)
Share Price: $45.05
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Why Does ASO Worry Us?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its five-year trend
- Efficiency has decreased over the last year as its operating margin fell by 1.4 percentage points
Academy Sports’s stock price of $45.05 implies a valuation ratio of 7.1x forward price-to-earnings. Read our free research report to see why you should think twice about including ASO in your portfolio.
CoreCivic (CXW)
Share Price: $19.51
As the nation's largest owner of partnership correctional and detention facilities, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs through government contracts across the United States.
Why Should You Dump CXW?
- Number of average available beds has disappointed over the past two years, indicating weak demand for its offerings
- Earnings per share fell by 22.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Free cash flow margin shrank by 8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $19.51 per share, CoreCivic trades at 18.8x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CXW.
One Stock Under $50 to Watch:
United Parks & Resorts (PRKS)
Share Price: $45.94
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Could PRKS Be a Winner?
- Healthy operating margin of 26.7% shows it’s a well-run company with efficient processes
- Share repurchases over the last five years enabled its annual earnings per share growth of 24.3% to outpace its revenue gains
- Returns on capital are growing as management capitalizes on its market opportunities
United Parks & Resorts is trading at $45.94 per share, or 9.6x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.
Get started by checking 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
