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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Five9 (FIVN)
Share Price: $15.17
Taking its name from the "five nines" (99.999%) standard for optimal service reliability in telecommunications, Five9 (NASDAQ: FIVN) provides cloud-based software that enables businesses to run their contact centers with tools for customer service, sales, and marketing across multiple communication channels.
Why Should You Sell FIVN?
- Products, pricing, or go-to-market strategy may need some adjustments as its 9.1% average billings growth over the last year was weak
- Estimated sales growth of 9.3% for the next 12 months implies demand will slow from its two-year trend
- Gross margin of 55.2% reflects its high servicing costs
Five9’s stock price of $15.17 implies a valuation ratio of 1.1x forward price-to-sales. To fully understand why you should be careful with FIVN, check out our full research report (it’s free).
Tecnoglass (TGLS)
Share Price: $40.93
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Why Does TGLS Give Us Pause?
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 5.2% annually while its revenue grew
- 9.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $40.93 per share, Tecnoglass trades at 11.2x forward P/E. If you’re considering TGLS for your portfolio, see our FREE research report to learn more.
DXC (DXC)
Share Price: $11.82
Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.
Why Should You Dump DXC?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales decline of 1.9% over the next 12 months indicates demand will continue deteriorating
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
DXC is trading at $11.82 per share, or 3.9x forward P/E. Dive into our free research report to see why there are better opportunities than DXC.
High-Quality Stocks for All Market Conditions
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
