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.
These dynamic can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
nCino (NCNO)
Share Price: $28.73
Founded in 2011 in North Carolina, nCino (NASDAQ: NCNO) makes cloud-based operating systems for banks and provides that software-as-a-service.
Why Are We Cautious About NCNO?
- Gross margin of 60.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Track record of operating losses stem from its decision to pursue growth instead of profits
nCino’s stock price of $28.73 implies a valuation ratio of 5.6x forward price-to-sales. If you’re considering NCNO for your portfolio, see our FREE research report to learn more.
Vishay Intertechnology (VSH)
Share Price: $17.01
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Why Is VSH Risky?
- Sales trends were unexciting over the last five years as its 1.9% annual growth was below the typical semiconductor company
- Gross margin of 25.3% reflects its high production costs
- Free cash flow margin dropped by 12.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $17.01 per share, Vishay Intertechnology trades at 21.8x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than VSH.
WillScot Mobile Mini (WSC)
Share Price: $30.58
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Does WSC Worry Us?
- 5.7% annual revenue growth over the last two years was slower than its industrials peers
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- ROIC of 6.9% reflects management’s challenges in identifying attractive investment opportunities
WillScot Mobile Mini is trading at $30.58 per share, or 17x forward price-to-earnings. Read our free research report to see why you should think twice about including WSC in your portfolio.
Stocks We Like 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 Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
