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 is one stock under $50 with huge potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Reynolds (REYN)
Share Price: $26.21
Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.
Why Should You Sell REYN?
- Flat unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Sales are projected to be flat over the next 12 months and imply weak demand
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 25.4% that must be offset through higher volumes
Reynolds’s stock price of $26.21 implies a valuation ratio of 16.5x forward P/E. If you’re considering REYN for your portfolio, see our FREE research report to learn more.
Covenant Logistics (CVLG)
Share Price: $44.15
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ: CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Why Do We Pass on CVLG?
- Sales trends were unexciting over the last two years as its 3.8% annual growth was below the typical industrials company
- Earnings per share fell by 15.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $44.15 per share, Covenant Logistics trades at 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLG doesn’t pass our bar.
One Stock Under $50 to Buy:
Instacart (CART)
Share Price: $47.95
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ: CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Why Do We Love CART?
- Superior platform functionality and low servicing costs lead to a stellar gross margin of 74.1%
- Highly efficient business model is illustrated by its impressive 28.3% EBITDA margin, and its rise over the last few years was fueled by some leverage on its fixed costs
- Free cash flow margin jumped by 12.5 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Instacart is trading at $47.95 per share, or 8.8x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
