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 huge potential and two that could be down big.
Two Stocks Under $50 to Sell:
Scholastic (SCHL)
Share Price: $19.12
Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ: SCHL) is an international company specializing in children's publishing, education, and media services.
Why Does SCHL Fall Short?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Poor expense management has led to an operating margin of 3% that is below the industry average
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Scholastic is trading at $19.12 per share, or 11.1x forward P/E. To fully understand why you should be careful with SCHL, check out our full research report (it’s free).
Franklin BSP Realty Trust (FBRT)
Share Price: $10.89
Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.
Why Is FBRT Risky?
- Sales tumbled by 3.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Annual tangible book value per share declines of 1.9% for the past five years show its capital management struggled during this cycle
At $10.89 per share, Franklin BSP Realty Trust trades at 0.7x forward P/B. Check out our free in-depth research report to learn more about why FBRT doesn’t pass our bar.
One Stock Under $50 to Watch:
Photronics (PLAB)
Share Price: $18.20
Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Why Do We Like PLAB?
- Operating margin improvement of 14.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 31.7% exceeded its revenue gains over the last five years
- ROIC punches in at 25.4%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
Photronics’s stock price of $18.20 implies a valuation ratio of 8.8x forward P/E. Is now the time to initiate a position? 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 6 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-small-cap company Exlservice (+354% 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
