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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 that could 10x and one that may have trouble.
One Stock Under $50 to Sell:
AMN Healthcare Services (AMN)
Share Price: $22.94
With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.
Why Should You Dump AMN?
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Declining travelers on assignment over the past two years suggest it might have to lower prices to accelerate growth
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Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
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Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $22.94 per share, AMN Healthcare Services trades at 18.9x forward P/E. Read our free research report to see why you should think twice about including AMN in your portfolio, it’s free.
Two Stocks Under $50 to Watch:
Cadre (CDRE)
Share Price: $34.93
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Positive On CDRE?
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Solid 9.7% annual revenue growth over the last two years indicates its offering’s solve complex business issues
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Market share is on track to rise over the next 12 months as its 19.3% projected revenue growth implies demand will accelerate from its two-year trend
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Earnings growth has trumped its peers over the last two years as its EPS has compounded at 19.7% annually
Cadre is trading at $34.93 per share, or 21.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Verra Mobility (VRRM)
Share Price: $24.53
Managing over 165 million tolling transactions per year, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways.
Why Is VRRM a Good Business?
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Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
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Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 62.1%
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Strong free cash flow margin of 20% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute