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.
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. Keeping that in mind, here are two stocks under $50 with huge potential and one that could be down big.
One Stock Under $50 to Sell:
Harley-Davidson (HOG)
Share Price: $22.66
Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.
Why Do We Pass on HOG?
- Sluggish trends in its motorcycles sold suggest customers aren’t adopting its solutions as quickly as the company hoped
- Eroding returns on capital suggest its historical profit centers are aging
- 13× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Harley-Davidson is trading at $22.66 per share, or 6.9x forward P/E. If you’re considering HOG for your portfolio, see our FREE research report to learn more.
Two Stocks Under $50 to Watch:
Dynatrace (DT)
Share Price: $47.89
Founded in Austria in 2005, Dynatrace (NYSE: DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.
Why Does DT Stand Out?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Prominent and differentiated software leads to a top-tier gross margin of 82.2%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $47.89 per share, Dynatrace trades at 7.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Blue Bird (BLBD)
Share Price: $37.40
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Is BLBD a Good Business?
- Market share has increased this cycle as its 16.5% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 154% outpaced its revenue gains
- Returns on capital are growing as management capitalizes on its market opportunities
Blue Bird’s stock price of $37.40 implies a valuation ratio of 8.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
