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1 Stock Under $50 Worth Your Attention and 2 to Question

CTS 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. Keeping that in mind, here is one stock under $50 with massive upside potential and two that may have trouble.

Two Stocks Under $50 to Sell:

CTS (CTS)

Share Price: $41

With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE: CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets.

Why Is CTS Risky?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.1% annually over the last two years
  2. Smaller revenue base of $515.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

CTS’s stock price of $41 implies a valuation ratio of 18.9x forward P/E. If you’re considering CTS for your portfolio, see our FREE research report to learn more.

Ziff Davis (ZD)

Share Price: $32.39

Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.

Why Should You Sell ZD?

  1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
  2. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 1.6% annually
  3. Free cash flow margin dropped by 17.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $32.39 per share, Ziff Davis trades at 4.3x forward P/E. To fully understand why you should be careful with ZD, check out our full research report (it’s free).

One Stock Under $50 to Buy:

Byrna (BYRN)

Share Price: $23.50

Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.

Why Are We Backing BYRN?

  1. Market share has increased this cycle as its 40.2% annual revenue growth over the last two years was exceptional
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 99.2% annually, topping its revenue gains
  3. Free cash flow margin increased to break even levels over the last five years, showing the company is at an important crossroads

Byrna is trading at $23.50 per share, or 37.3x forward EV-to-EBITDA. Is now the right 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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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