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2 Stocks Under $50 with Competitive Advantages and 1 Facing Challenges

KMT 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 are two stocks under $50 with massive upside potential and one best left ignored.

One Stock Under $50 to Sell:

Kennametal (KMT)

Share Price: $35.86

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE: KMT) is a provider of industrial materials and tools for various sectors.

Why Do We Think KMT Will Underperform?

  1. Sales tumbled by 1.1% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  3. Earnings per share lagged its peers over the last two years as they only grew by 1.9% annually

Kennametal is trading at $35.86 per share, or 14.6x forward P/E. To fully understand why you should be careful with KMT, check out our full research report (it’s free).

Two Stocks Under $50 to Watch:

NCR Atleos (NATL)

Share Price: $42.48

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

Why Could NATL Be a Winner?

  1. Incremental sales significantly boosted profitability as its annual earnings per share growth of 78.6% over the last two years outstripped its revenue performance

NCR Atleos’s stock price of $42.48 implies a valuation ratio of 9.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Donnelley Financial Solutions (DFIN)

Share Price: $46.10

Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions (NYSE: DFIN) provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements.

Why Does DFIN Stand Out?

  1. Earnings per share grew by 15.7% annually over the last five years and topped the peer group average
  2. Industry-leading 25.8% return on equity demonstrates management’s skill in finding high-return investments

At $46.10 per share, Donnelley Financial Solutions trades at 9.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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