Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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 is one stock under $50 with huge potential and two that could be down big.
Two Stocks Under $50 to Sell:
MillerKnoll (MLKN)
Share Price: $14.75
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ: MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
Why Do We Think Twice About MLKN?
- Muted 1.4% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 7.9% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.4% for the last five years
MillerKnoll is trading at $14.75 per share, or 7.3x forward P/E. Dive into our free research report to see why there are better opportunities than MLKN.
Fastly (FSLY)
Share Price: $32.80
Taking its name from the core advantage it delivers to customers, Fastly (NASDAQ: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.
Why Should You Sell FSLY?
- Net revenue retention rate of 105% trails the industry benchmark of 110%+ and shows it has a tough time increasing customer spending
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 57.1%, one of the worst among software companies
- Persistent operating margin losses suggest the business manages its expenses poorly
Fastly’s stock price of $32.80 implies a valuation ratio of 6.7x forward price-to-sales. To fully understand why you should be careful with FSLY, check out our full research report (it’s free).
One Stock Under $50 to Watch:
Magnolia Oil & Gas (MGY)
Share Price: $29.59
Operating over 600,000 net acres primarily in two distinct South Texas regions, Magnolia Oil & Gas (NYSE: MGY) drills and produces oil, natural gas, and natural gas liquids from South Texas formations.
Why Do We Like MGY?
- Annual revenue growth of 19.7% over the past five years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 84.8%
- MGY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $29.59 per share, Magnolia Oil & Gas trades at 11.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
