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. That said, here is one stock under $50 with huge potential and two best left ignored.
Two Stocks Under $50 to Sell:
Knowles (KN)
Share Price: $37.43
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Why Is KN Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.7% annually over the last five years
- Modest revenue base of $635 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Flat earnings per share over the last five years lagged its peers
Knowles is trading at $37.43 per share, or 25.1x forward P/E. If you’re considering KN for your portfolio, see our FREE research report to learn more.
Excelerate Energy (EE)
Share Price: $32.12
Operating specialized vessels that can deliver up to 1.2 billion cubic feet of natural gas per day, Excelerate Energy (NYSE: EE) provides liquified natural gas regasification services using floating vessels that convert LNG back into natural gas.
Why Are We Cautious About EE?
- Revenue base of $1.47 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Gross margin of 29.9% is below its competitors, leaving less money to invest in exploration and production
- Poor free cash flow margin of 5.5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $32.12 per share, Excelerate Energy trades at 16.5x forward P/E. Read our free research report to see why you should think twice about including EE in your portfolio.
One Stock Under $50 to Buy:
ServisFirst Bancshares (SFBS)
Share Price: $39.98
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Why Will SFBS Beat the Market?
- Impressive 19.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Net interest margin jumped by 71.1 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more resources to pursue growth initiatives
- Additional sales over the last two years increased its profitability as the 25.7% annual growth in its earnings per share outpaced its revenue
ServisFirst Bancshares’s stock price of $39.98 implies a valuation ratio of 2.1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
