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.
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 three stocks under $50 to swipe left on and some alternatives you should look into instead.
ACV Auctions (ACVA)
Share Price: $16.22
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
Why Does ACVA Fall Short?
- Gross margin of 25.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $16.22 per share, ACV Auctions trades at 30.3x forward EV/EBITDA. Read our free research report to see why you should think twice about including ACVA in your portfolio.
Helios (HLIO)
Share Price: $33.37
Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Why Are We Out on HLIO?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales decline of 1.6% over the next 12 months indicates demand will continue deteriorating
- Earnings per share fell by 4.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Helios’s stock price of $33.37 implies a valuation ratio of 14.7x forward P/E. To fully understand why you should be careful with HLIO, check out our full research report (it’s free).
SolarEdge (SEDG)
Share Price: $20.51
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
Why Do We Steer Clear of SEDG?
- Performance surrounding its megawatts shipped has lagged its peers
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
SolarEdge is trading at $20.51 per share, or 1x forward price-to-sales. If you’re considering SEDG for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
