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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.
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 are two stocks under $50 with huge potential and one that could be down big.
One Stock Under $50 to Sell:
Movado (MOV)
Share Price: $17.44
With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Should You Sell MOV?
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Products and services have few die-hard fans as sales have declined by 1.5% annually over the last five years
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Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 14.9% annually, worse than its revenue
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Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Movado’s stock price of $17.44 implies a valuation ratio of 0.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MOV.
Two Stocks Under $50 to Buy:
Graham Corporation (GHM)
Share Price: $31.63
Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Why Do We Love GHM?
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Annual revenue growth of 17% over the past five years was outstanding, reflecting market share gains this cycle
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Earnings per share have massively outperformed its peers over the last two years, increasing by 298% annually
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Free cash flow margin expanded by 5.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Graham Corporation is trading at $31.63 per share, or 27x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.
QuinStreet (QNST)
Share Price: $17.75
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
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Market share has increased this cycle as its 27.1% annual revenue growth over the last two years was exceptional
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Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
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Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 99.4% annually