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1 Stock Under $50 with Exciting Potential and 2 to Avoid

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1 Stock Under $50 with Exciting Potential and 2 to Avoid

Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.

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 is one stock under $50 that could 10x and two best left ignored.

Two Stocks Under $50 to Sell:

Werner (WERN)

Share Price: $29.89

Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Why Do We Avoid WERN?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years

  2. Earnings per share fell by 26% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $29.89 per share, Werner trades at 24.6x forward price-to-earnings. To fully understand why you should be careful with WERN, check out our full research report (it’s free).

TTM Technologies (TTMI)

Share Price: $22.27

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

Why Do We Think TTMI Will Underperform?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.1% annually over the last two years

  2. Flat earnings per share over the last two years underperformed the sector average

  3. ROIC of 4.4% reflects management’s challenges in identifying attractive investment opportunities

TTM Technologies’s stock price of $22.27 implies a valuation ratio of 11.5x forward price-to-earnings. Read our free research report to see why you should think twice about including TTMI in your portfolio, it’s free.

One Stock Under $50 to Watch:

IonQ (IONQ)

Share Price: $24.35

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.