The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $50 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
RingCentral (RNG)
Share Price: $27.21
Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.
Why Are We Hesitant About RNG?
- Underwhelming ARR growth of 8.9% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Net revenue retention rate of 99.1% shows it has a tough time retaining customers
- Estimated sales growth of 5% for the next 12 months implies demand will slow from its three-year trend
At $27.21 per share, RingCentral trades at 1x forward price-to-sales. Read our free research report to see why you should think twice about including RNG in your portfolio.
MGP Ingredients (MGPI)
Share Price: $31.43
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Are We Out on MGPI?
- 3.9% annual revenue growth over the last three years was slower than its consumer staples peers
- Projected sales decline of 24.3% for the next 12 months points to a tough demand environment ahead
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 7.2 percentage points
MGP Ingredients’s stock price of $31.43 implies a valuation ratio of 9.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than MGPI.
One Stock Under $50 to Watch:
Photronics (PLAB)
Share Price: $21.01
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Why Are We Positive On PLAB?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share buybacks propelled its annual earnings per share growth to 31%, which outperformed its revenue gains over the last five years
- Free cash flow margin grew by 9.7 percentage points over the last five years, giving the company more chips to play with
Photronics is trading at $21.01 per share, or 9.6x forward price-to-earnings. Is now the right 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 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 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.