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.

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 that could 10x and two that could be down big.

Two Stocks Under $50 to Sell:

American Eagle (AEO)

Share Price: $18.22

With a heavy focus on denim, American Eagle Outfitters (NYSE: AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.

Why Are We Cautious About AEO?

1. 3.9% annual revenue growth over the last six years was slower than its consumer retail peers
2. Subpar operating margin of 5.4% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

American Eagle’s stock price of $18.22 implies a valuation ratio of 17x forward P/E. To fully understand why you should be careful with AEO, check out our full research report (it’s free).

Universal Logistics (ULH)

Share Price: $24.29

Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Why Do We Pass on ULH?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.1% annually over the last two years
2. Earnings per share have dipped by 28% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Universal Logistics is trading at $24.29 per share, or 9.3x forward P/E. Check out our free in-depth research report to learn more about why ULH doesn’t pass our bar.

One Stock Under $50 to Watch:

Confluent (CFLT)

Share Price: $20.18

Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ: CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.

Why Are We Fans of CFLT?

1. Billings have averaged 32.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
3. Free cash flow margin is anticipated to expand by 5.6 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends

At $20.18 per share, Confluent trades at 5.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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

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