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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. 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:
DistributionNOW (DNOW)
Share Price: $14.15
Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
Why Do We Steer Clear of DNOW?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.8% annually over the last five years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.8 percentage points
DistributionNOW’s stock price of $14.15 implies a valuation ratio of 9.8x forward EV-to-EBITDA. To fully understand why you should be careful with DNOW, check out our full research report (it’s free).
Rivian (RIVN)
Share Price: $13.17
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ: RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Why Are We Hesitant About RIVN?
- Negative 52.8% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Negative free cash flow raises questions about the return timeline for its investments
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Rivian is trading at $13.17 per share, or 2.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RIVN.
One Stock Under $50 to Buy:
IonQ (IONQ)
Share Price: $45.35
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Will IONQ Outperform?
- Impressive 78.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating margin improvement of 614.5 percentage points over the last five years demonstrates its ability to scale efficiently
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
At $45.35 per share, IonQ trades at 100.6x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum 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 Exlservice (+354% 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
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