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1 Stock Under $50 with Exciting Potential and 2 We Avoid

RPD 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 is one stock under $50 with huge potential and two best left ignored.

Two Stocks Under $50 to Sell:

Rapid7 (RPD)

Share Price: $7.20

With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ: RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.

Why Do We Steer Clear of RPD?

  1. Products, pricing, or go-to-market strategy may need some adjustments as its 1.3% average billings growth over the last year was weak
  2. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
  3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 2.8 percentage points

Rapid7 is trading at $7.20 per share, or 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including RPD in your portfolio.

Silgan Holdings (SLGN)

Share Price: $48.65

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Why Should You Sell SLGN?

  1. Muted 4.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Projected sales growth of 2.6% for the next 12 months suggests sluggish demand
  3. High input costs result in an inferior gross margin of 16.8% that must be offset through higher volumes

Silgan Holdings’s stock price of $48.65 implies a valuation ratio of 12.8x forward P/E. To fully understand why you should be careful with SLGN, check out our full research report (it’s free).

One Stock Under $50 to Buy:

Ryan Specialty (RYAN)

Share Price: $39.33

Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE: RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers.

Why Will RYAN Outperform?

  1. Market share has increased this cycle as its 21.2% annual revenue growth over the last two years was exceptional
  2. Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 15.6% annually
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $39.33 per share, Ryan Specialty trades at 19.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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