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1 Stock Under $50 to Keep an Eye On and 2 to Think Twice About

MTCH Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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 with massive upside potential and two best left ignored.

Two Stocks Under $50 to Sell:

Matthews (MATW)

Share Price: $22.56

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Why Do We Avoid MATW?

  1. Annual sales declines of 2.9% for the past two years show its products and services struggled to connect with the market
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 12% annually while its revenue grew
  3. Low free cash flow margin of 0.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Matthews’s stock price of $22.56 implies a valuation ratio of 6.1x forward EV-to-EBITDA. If you’re considering MATW for your portfolio, see our FREE research report to learn more.

Matrix Service (MTRX)

Share Price: $12.28

Founded in Oklahoma, Matrix Service (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Why Are We Cautious About MTRX?

  1. Annual sales declines of 10.7% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Gross margin of 4.2% reflects its high production costs
  3. Issuance of new shares over the last five years caused its earnings per share to fall by 23.9% annually, even worse than its revenue declines

At $12.28 per share, Matrix Service trades at 16.3x forward P/E. Check out our free in-depth research report to learn more about why MTRX doesn’t pass our bar.

One Stock Under $50 to Watch:

Match Group (MTCH)

Share Price: $31.31

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Are We Positive On MTCH?

  1. 9.5% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 28% exceeded its revenue gains over the last three years
  3. MTCH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Match Group is trading at $31.31 per share, or 6.7x forward EV/EBITDA. Is now a good time to buy? See for yourself 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 183% over the last five years (as of March 31st 2025).

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. Find your next big winner with StockStory today. Find your next big winner with StockStory today.

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