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.
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 huge potential and two that could be down big.
Two Stocks Under $50 to Sell:
Dropbox (DBX)
Share Price: $29.26
Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ: DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.
Why Does DBX Give Us Pause?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Estimated sales decline of 2.7% for the next 12 months implies a challenging demand environment
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3 percentage points
Dropbox is trading at $29.26 per share, or 3.5x forward price-to-sales. Read our free research report to see why you should think twice about including DBX in your portfolio.
Collegium Pharmaceutical (COLL)
Share Price: $29.23
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Are We Hesitant About COLL?
- Revenue base of $664.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Free cash flow margin shrank by 6.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
At $29.23 per share, Collegium Pharmaceutical trades at 4.1x forward P/E. To fully understand why you should be careful with COLL, check out our full research report (it’s free).
One Stock Under $50 to Watch:
Thermon (THR)
Share Price: $26.60
Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.
Why Could THR Be a Winner?
- Offerings are mission-critical for businesses and result in a top-tier gross margin of 42.8%
- Operating margin expanded by 11.6 percentage points over the last five years as it scaled and became more efficient
- Additional sales over the last five years increased its profitability as the 20.8% annual growth in its earnings per share outpaced its revenue
Thermon’s stock price of $26.60 implies a valuation ratio of 13.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
