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.
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 massive upside potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Shutterstock (SSTK)
Share Price: $16.76
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Why Do We Think SSTK Will Underperform?
- Decision to emphasize platform growth over monetization has contributed to 73.7% annual declines in its average revenue per request
- Projected sales decline of 10% for the next 12 months points to a tough demand environment ahead
- Earnings per share were flat over the last three years and fell short of the peer group average
At $16.76 per share, Shutterstock trades at 3x forward EV/EBITDA. If you’re considering SSTK for your portfolio, see our FREE research report to learn more.
Trex (TREX)
Share Price: $37.26
Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE: TREX) makes wood-alternative decking, railing, and patio furniture.
Why Do We Avoid TREX?
- Annual revenue growth of 3.6% over the last two years was below our standards for the industrials sector
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 5.3 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Trex’s stock price of $37.26 implies a valuation ratio of 22.8x forward P/E. To fully understand why you should be careful with TREX, check out our full research report (it’s free).
One Stock Under $50 to Watch:
Nutanix (NTNX)
Share Price: $39.19
Originally pioneering hyperconverged infrastructure to break down traditional data center silos, Nutanix (NASDAQ: NTNX) provides a unified software platform that enables organizations to run applications and manage data across private, public, and hybrid cloud environments.
Why Could NTNX Be a Winner?
- Prominent and differentiated software results in a best-in-class gross margin of 87.1%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Strong free cash flow margin of 28.9% enables it to reinvest or return capital consistently
Nutanix is trading at $39.19 per share, or 3.9x forward price-to-sales. Is now a good time to buy? 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.
