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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.
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. That said, here is one stock under $50 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
Paycor (PYCR)
Share Price: $22.49
Founded in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.
Why Does PYCR Fall Short?
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Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its three-year trend
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Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 66%
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Suboptimal cost structure is highlighted by its history of operating losses
At $22.49 per share, Paycor trades at 5.3x forward price-to-sales. Read our free research report to see why you should think twice about including PYCR in your portfolio, it’s free.
Medifast (MED)
Share Price: $14.01
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Are We Out on MED?
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Annual revenue declines of 30.3% over the last three years indicate problems with its market positioning
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Operating margin declined by 10.2 percentage points over the last year as its sales cratered
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Earnings per share have contracted by 27% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Medifast’s stock price of $14.01 implies a valuation ratio of 0.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MED.
One Stock Under $50 to Watch:
SentinelOne (S)
Share Price: $20.05
With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.
Why Do We Like S?
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ARR growth averaged 30.9% over the last year, showing customers are willing to take multi-year bets on its offerings
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Expected revenue growth of 22.9% for the next year suggests its market share will rise
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Free cash flow margin is on track to jump by 7.5 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends