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 is one stock under $50 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
Tractor Supply (TSCO)
Share Price: $32.71
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Are We Cautious About TSCO?
- Annual sales growth of 2.6% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Gross margin of 36.4% is an output of its commoditized inventory
Tractor Supply is trading at $32.71 per share, or 15x forward P/E. Read our free research report to see why you should think twice about including TSCO in your portfolio.
NESR (NESR)
Share Price: $24.28
Operating across 16 countries from Algeria to Indonesia, NESR (NASDAQ: NESR) provides oilfield services like hydraulic fracturing, cementing, and drilling to oil and gas companies.
Why Are We Wary of NESR?
- 9.7% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
- Costly operations and weak unit economics result in an inferior gross margin of 12.9% that must be offset through higher production volumes
- Costs have risen faster than its revenue over the last five years, causing its EBITDA margin to decline by 24 percentage points
At $24.28 per share, NESR trades at 15.8x forward P/E. If you’re considering NESR for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Buy:
SoFi (SOFI)
Share Price: $16.04
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Are We Backing SOFI?
- Annual revenue growth of 33.4% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 396% outpaced its revenue gains
SoFi’s stock price of $16.04 implies a valuation ratio of 25.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
