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 that may have trouble.
Two Stocks Under $50 to Sell:
Redfin (RDFN)
Share Price: $11.30
Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform.
Why Are We Out on RDFN?
- Number of brokerage transactions has disappointed over the past two years, indicating weak demand for its offerings
- Earnings per share fell by 9.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
At $11.30 per share, Redfin trades at 86.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including RDFN in your portfolio.
Enphase (ENPH)
Share Price: $32.11
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ:ENPH) manufactures software-driven home energy products.
Why Do We Think Twice About ENPH?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 12 percentage points
- Earnings per share have dipped by 27.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Enphase is trading at $32.11 per share, or 13x forward P/E. If you’re considering ENPH for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Watch:
Hims & Hers Health (HIMS)
Share Price: $45.76
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Should HIMS Be on Your Watchlist?
- Average customer growth of 43.3% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Free cash flow margin jumped by 14.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Hims & Hers Health’s stock price of $45.76 implies a valuation ratio of 38.5x forward P/E. 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 Comfort Systems (+782% 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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