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1 Stock Under $50 with Competitive Advantages and 2 to Steer Clear Of

FVRR Cover Image

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. Keeping that in mind, here is one stock under $50 with massive upside potential and two that could be down big.

Two Stocks Under $50 to Sell:

Calavo (CVGW)

Share Price: $26.85

A trailblazer in the avocado industry, Calavo Growers (NASDAQ: CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.

Why Do We Pass on CVGW?

  1. Annual sales declines of 15.8% for the past three years show its products struggled to connect with the market
  2. Forecasted revenue decline of 1.8% for the upcoming 12 months implies demand will fall even further
  3. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 10.5%

Calavo’s stock price of $26.85 implies a valuation ratio of 14.3x forward P/E. To fully understand why you should be careful with CVGW, check out our full research report (it’s free).

Astec (ASTE)

Share Price: $39.35

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Do We Think ASTE Will Underperform?

  1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 28.1% declines over the past two years
  2. Estimated sales growth of 3.5% for the next 12 months is soft and implies weaker demand
  3. 8.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $39.35 per share, Astec trades at 14x forward P/E. If you’re considering ASTE for your portfolio, see our FREE research report to learn more.

One Stock Under $50 to Watch:

Fiverr (FVRR)

Share Price: $29.66

Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.

Why Are We Fans of FVRR?

  1. 17.4% annual increases in its average revenue per buyer over the last two years show its platform is resonating with power users
  2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 52.1% outpaced its revenue gains
  3. Free cash flow margin jumped by 9.7 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Fiverr is trading at $29.66 per share, or 12.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. 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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