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 that could 10x and two that could be down big.
Two Stocks Under $50 to Sell:
Steven Madden (SHOO)
Share Price: $25.68
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ:SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Is SHOO Not Exciting?
- 3.7% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Earnings per share lagged its peers over the last five years as they only grew by 6.8% annually
- Poor free cash flow margin of 9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Steven Madden is trading at $25.68 per share, or 10x forward price-to-earnings. Check out our free in-depth research report to learn more about why SHOO doesn’t pass our bar.
IAC (IAC)
Share Price: $43.86
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ:IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
Why Does IAC Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 14.1% annually over the last two years
- Earnings per share have contracted by 72.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Negative returns on capital show management lost money while trying to expand the business
At $43.86 per share, IAC trades at 19.6x forward price-to-earnings. Read our free research report to see why you should think twice about including IAC in your portfolio.
One Stock Under $50 to Watch:
Exact Sciences (EXAS)
Share Price: $43.04
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Does EXAS Catch Our Eye?
- Constant currency growth averaged 15.3% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Earnings per share grew by 12.6% annually over the last five years and easily exceeded the peer group average
Exact Sciences’s stock price of $43.04 implies a valuation ratio of 216.9x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.
Get started 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
