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.
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 huge potential and two that could be down big.
Two Stocks Under $50 to Sell:
CarGurus (CARG)
Share Price: $31.54
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
Why Does CARG Worry Us?
- Market opportunities are plateauing as its paying dealers were flat over the last two years
- Projected sales growth of 6% for the next 12 months suggests sluggish demand
- Earnings growth underperformed the sector average over the last three years as its EPS grew by just 5.8% annually
At $31.54 per share, CarGurus trades at 11.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CARG.
Karat Packaging (KRT)
Share Price: $30.83
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Why Are We Wary of KRT?
- 2.1% annual revenue growth over the last two years was slower than its industrials peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.9% annually
- Low free cash flow margin of 4.5% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Karat Packaging’s stock price of $30.83 implies a valuation ratio of 11.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why KRT doesn’t pass our bar.
One Stock Under $50 to Watch:
Globalstar (GSAT)
Share Price: $18.54
Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.
Why Are We Fans of GSAT?
- Annual revenue growth of 20.7% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 33.7% over the last two years outstripped its revenue performance
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Globalstar is trading at $18.54 per share, or 22.3x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
