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.
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 is one stock under $50 with massive upside potential and two best left ignored.
Two Stocks Under $50 to Sell:
Allegro MicroSystems (ALGM)
Share Price: $26.66
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ: ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Why Are We Hesitant About ALGM?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 14.2% annually over the last two years
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.6% annually while its revenue grew
- Weak free cash flow margin of 7.8% has deteriorated further over the last five years as its investments increased
Allegro MicroSystems’s stock price of $26.66 implies a valuation ratio of 34.9x forward P/E. Check out our free in-depth research report to learn more about why ALGM doesn’t pass our bar.
Zurn Elkay (ZWS)
Share Price: $46.84
Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.
Why Is ZWS Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin shrank by 16.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Zurn Elkay is trading at $46.84 per share, or 28.8x forward P/E. Dive into our free research report to see why there are better opportunities than ZWS.
One Stock Under $50 to Watch:
Coupang (CPNG)
Share Price: $23.52
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Are We Fans of CPNG?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 11.2% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.4% outpaced its revenue gains
- Free cash flow margin jumped by 9.1 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $23.52 per share, Coupang trades at 20.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. 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 Tecnoglass (+1,754% 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.
