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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. That said, here is one stock under $50 with huge potential and two best left ignored.
Two Stocks Under $50 to Sell:
Benchmark (BHE)
Share Price: $39.18
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Why Should You Dump BHE?
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Customers postponed purchases of its products and services this cycle as its revenue declined by 4.1% annually over the last two years
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Low free cash flow margin of 0.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
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Low returns on capital reflect management’s struggle to allocate funds effectively
Benchmark’s stock price of $39.18 implies a valuation ratio of 16x forward price-to-earnings. Check out our free in-depth research report to learn more about why BHE doesn’t pass our bar.
Premier (PINC)
Share Price: $18.06
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Why Are We Out on PINC?
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Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.9% annually over the last two years
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Sales are projected to tank by 15.9% over the next 12 months as its demand continues evaporating
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Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Premier is trading at $18.06 per share, or 15.2x forward price-to-earnings. Read our free research report to see why you should think twice about including PINC in your portfolio, it’s free.
One Stock Under $50 to Watch:
Hims & Hers Health (HIMS)
Share Price: $27.65
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.