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1 Stock Under $50 to Own for Decades and 2 to Be Wary Of

FDP Cover Image

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.

These dynamics 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 is one stock under $50 that could 10x and two best left ignored.

Two Stocks Under $50 to Sell:

Fresh Del Monte Produce (FDP)

Share Price: $33.62

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Why Do We Think FDP Will Underperform?

  1. Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
  2. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 8.2% that must be offset through higher volumes
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Fresh Del Monte Produce’s stock price of $33.62 implies a valuation ratio of 8.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including FDP in your portfolio.

Columbus McKinnon (CMCO)

Share Price: $14.94

With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Why Should You Sell CMCO?

  1. Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical industrials company
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3% annually
  3. Free cash flow margin shrank by 12.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Columbus McKinnon is trading at $14.94 per share, or 4.6x forward P/E. Check out our free in-depth research report to learn more about why CMCO doesn’t pass our bar.

One Stock Under $50 to Buy:

Magnite (MGNI)

Share Price: $11.81

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Should You Buy MGNI?

  1. Market share has increased this cycle as its 33.7% annual revenue growth over the last five years was exceptional
  2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 77.3% annually, topping its revenue gains
  3. Strong free cash flow margin of 24.8% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $11.81 per share, Magnite trades at 12.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks That Overcame Trump’s 2018 Tariffs

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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