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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $50 with huge potential and two that could be down big.
Two Stocks Under $50 to Sell:
International Paper (IP)
Share Price: $50.53
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Do We Think IP Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.6% annually over the last five years
- Free cash flow margin dropped by 7.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
International Paper’s stock price of $50.53 implies a valuation ratio of 16.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why IP doesn’t pass our bar.
Guardant Health (GH)
Share Price: $43.80
Founded in 2012, Guardant Health (NASDAQ: GH) is a precision diagnostics company that develops blood tests for detecting cancer and assessing treatment responses.
Why Does GH Fall Short?
- Earnings per share fell by 19% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $43.80 per share, Guardant Health trades at 6.2x forward price-to-sales. If you’re considering GH for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Watch:
Astrana Health (ASTH)
Share Price: $30.12
Founded in 2013, Astrana Health provides care management and coordination services designed to improve health outcomes for complex and chronically ill patients, focusing on personalized healthcare and value-based care delivery.
Why Does ASTH Stand Out?
- Market share has increased this cycle as its 33.3% annual revenue growth over the last two years was exceptional
- Exciting sales outlook for the upcoming 12 months calls for 36.7% growth, an acceleration from its two-year trend
- Earnings per share grew by 18.7% annually over the last five years, massively outpacing its peers
Astrana Health is trading at $30.12 per share, or 6.8x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
