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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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are two stocks under $50 with huge potential and one that may have trouble.

One Stock Under $50 to Sell:

DXC (DXC)

Share Price: $18.22

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE:DXC) is a global IT services company that helps businesses transform their operations through technology solutions, cloud infrastructure, and cybersecurity services.

Why Should You Sell DXC?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

2. Earnings per share have dipped by 11.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term

3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $18.22 per share, DXC trades at 5.7x forward price-to-earnings. If you’re considering DXC for your portfolio, see our FREE research report to learn more.

Two Stocks Under $50 to Watch:

American Superconductor (AMSC)

Share Price: $19.55

Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.

Why Is AMSC a Good Business?

1. Impressive 39% annual revenue growth over the last two years indicates it’s winning market share this cycle

2. Free cash flow turned positive over the last five years, indicating the company has achieved financial self-sustainability

3. Improving returns on capital suggest its past investments are beginning to deliver value

American Superconductor is trading at $19.55 per share, or 48.3x forward price-to-earnings. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Option Care Health (OPCH)

Share Price: $34.12

Founded in 1979, Option Care Health (NASDAQ:OPCH) delivers home and alternate site infusion therapy services, specializing in the administration of medications and care for patients with chronic and acute conditions.