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.
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 could be down big.
Two Stocks Under $50 to Sell:
Gap (GAP)
Share Price: $20.22
Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.
Why Should You Sell GAP?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Operating margin of 5.6% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Gap’s stock price of $20.22 implies a valuation ratio of 9.2x forward price-to-earnings. If you’re considering GAP for your portfolio, see our FREE research report to learn more.
Rivian (RIVN)
Share Price: $10.73
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ: RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Why Are We Cautious About RIVN?
- Negative 60.5% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $10.73 per share, Rivian trades at 2.1x forward price-to-sales. Check out our free in-depth research report to learn more about why RIVN doesn’t pass our bar.
One Stock Under $50 to Buy:
Remitly (RELY)
Share Price: $20.08
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Are We Bullish on RELY?
- Active Customers have grown by 39.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 88.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 19.3 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Remitly is trading at $20.08 per share, or 21.9x forward EV-to-EBITDA. 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 6 Stocks for this week. 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.
