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1 Stock Under $50 to Target This Week and 2 to Be Wary Of

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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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $50 with massive upside potential and two best left ignored.

Two Stocks Under $50 to Sell:

Sotera Health Company (SHC)

Share Price: $12.36

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Why Are We Hesitant About SHC?

  1. Annual revenue growth of 5.9% over the last two years was below our standards for the healthcare sector
  2. Subscale operations are evident in its revenue base of $1.11 billion, meaning it has fewer distribution channels than its larger rivals
  3. Low free cash flow margin of 1.4% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Sotera Health Company’s stock price of $12.36 implies a valuation ratio of 16.2x forward P/E. If you’re considering SHC for your portfolio, see our FREE research report to learn more.

Steelcase (SCS)

Share Price: $10.37

Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE: SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.

Why Do We Think SCS Will Underperform?

  1. Sales tumbled by 3.2% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Earnings per share have contracted by 6.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
  3. ROIC of 6.4% reflects management’s challenges in identifying attractive investment opportunities

Steelcase is trading at $10.37 per share, or 9.5x forward P/E. Dive into our free research report to see why there are better opportunities than SCS.

One Stock Under $50 to Watch:

Freshworks (FRSH)

Share Price: $15.53

Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.

Why Could FRSH Be a Winner?

  1. ARR growth averaged 19.9% over the last year, showing customers are willing to take multi-year bets on its offerings
  2. Software is difficult to replicate at scale and leads to a premier gross margin of 84.4%
  3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

At $15.53 per share, Freshworks trades at 5.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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