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2 Stocks Under $50 to Target This Week and 1 We Avoid

YELP 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 are two stocks under $50 with massive upside potential and one that could be down big.

One Stock Under $50 to Sell:

Simmons First National (SFNC)

Share Price: $19.38

With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.

Why Are We Out on SFNC?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.9% annually over the last two years
  2. Net interest income stagnated over the last five years and signal the need for new growth strategies
  3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

At $19.38 per share, Simmons First National trades at 0.7x forward P/B. To fully understand why you should be careful with SFNC, check out our full research report (it’s free).

Two Stocks Under $50 to Watch:

Yelp (YELP)

Share Price: $33.04

Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE: YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.

Why Do We Like YELP?

  1. Platform is difficult to replicate at scale and leads to a best-in-class gross margin of 91.2%
  2. Excellent EBITDA margin of 25.7% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last few years
  3. YELP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

Yelp is trading at $33.04 per share, or 6.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Vital Farms (VITL)

Share Price: $35.97

With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.

Why Do We Love VITL?

  1. Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
  2. Market share will likely rise over the next 12 months as its expected revenue growth of 26.5% is robust
  3. Earnings per share have massively outperformed its peers over the last three years, increasing by 161% annually

Vital Farms’s stock price of $35.97 implies a valuation ratio of 25.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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