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.
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 that could 10x and two best left ignored.
Two Stocks Under $50 to Sell:
nLIGHT (LASR)
Share Price: $14.51
Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.
Why Should You Sell LASR?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.8% annually over the last two years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.7 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
nLIGHT’s stock price of $14.51 implies a valuation ratio of 3.2x forward price-to-sales. Read our free research report to see why you should think twice about including LASR in your portfolio.
Gap (GAP)
Share Price: $28.84
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 Do We Steer Clear of GAP?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- 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
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $28.84 per share, Gap trades at 13.1x forward P/E. Check out our free in-depth research report to learn more about why GAP doesn’t pass our bar.
One Stock Under $50 to Buy:
American Superconductor (AMSC)
Share Price: $25.02
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Will AMSC Beat the Market?
- Impressive 45% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
- Rising returns on capital show the company is starting to reap the benefits of its past investments
American Superconductor is trading at $25.02 per share, or 47.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
