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.
These dynamic 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. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
CarGurus (CARG)
Share Price: $32.00
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
Why Are We Cautious About CARG?
- Paying Dealers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
- Anticipated sales growth of 5.7% for the next year implies demand will be shaky
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 5.2% annually
CarGurus’s stock price of $32.00 implies a valuation ratio of 12x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CARG doesn’t pass our bar.
Accel Entertainment (ACEL)
Share Price: $9.81
Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Why Is ACEL Not Exciting?
- Lackluster 12.7% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Estimated sales growth of 6.1% for the next 12 months implies demand will slow from its two-year trend
- Low free cash flow margin of 4.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Accel Entertainment is trading at $9.81 per share, or 10.3x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than ACEL.
Verizon (VZ)
Share Price: $42.05
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.
Why Should You Dump VZ?
- Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
- Projected sales growth of 1.7% for the next 12 months suggests sluggish demand
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $42.05 per share, Verizon trades at 9.2x forward price-to-earnings. If you’re considering VZ for your portfolio, see our FREE research report to learn more.
Stocks We Like More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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.