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1 Stock Under $50 Worth Your Attention and 2 to Approach with Caution

AZEK Cover Image

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 that may have trouble.

Two IndustrialsStocks Under $50 to Sell:

Trinity (TRN)

Share Price: $25.85

Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.

Why Does TRN Give Us Pause?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.1% annually over the last five years
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Trinity is trading at $25.85 per share, or 3.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TRN doesn’t pass our bar.

RXO (RXO)

Share Price: $15.89

With access to millions of trucks, RXO (NYSE: RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.

Why Should You Dump RXO?

  1. Muted 6.2% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Performance over the past four years shows its incremental sales were much less profitable, as its earnings per share fell by 38.8% annually
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $15.89 per share, RXO trades at 56.3x forward P/E. To fully understand why you should be careful with RXO, check out our full research report (it’s free).

One Industrials Stock Under $50 to Buy:

AZEK (AZEK)

Share Price: $51.70

With a significant portion of its products made from recycled materials, AZEK (NYSE: AZEK) designs and manufactures goods for outdoor living spaces.

Why Is AZEK a Good Business?

  1. Average organic revenue growth of 12.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 56.9% exceeded its revenue gains over the last two years
  3. Free cash flow margin grew by 8.8 percentage points over the last five years, giving the company more chips to play with

AZEK’s stock price of $51.70 implies a valuation ratio of 33.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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