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 best left ignored.
Two Stocks Under $50 to Sell:
Knowles (KN)
Share Price: $41.14
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 Do We Pass on KN?
- Annual sales declines of 5.2% for the past five years show its products and services struggled to connect with the market during this cycle
- Subscale operations are evident in its revenue base of $614.1 million, meaning it has fewer distribution channels than its larger rivals
- Earnings per share lagged its peers over the last five years as they only grew by 5.2% annually
At $41.14 per share, Knowles trades at 29.4x forward P/E. Check out our free in-depth research report to learn more about why KN doesn’t pass our bar.
Nutanix (NTNX)
Share Price: $50.97
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 Do We Think Twice About NTNX?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13.5% average billings growth over the last year was weak
- Estimated sales growth of 12.9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Nutanix’s stock price of $50.97 implies a valuation ratio of 4.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than NTNX.
One Stock Under $50 to Buy:
LSI (LYTS)
Share Price: $26.56
Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.
Why Is LYTS a Top Pick?
- Impressive 16.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.2% outpaced its revenue gains
- Free cash flow margin increased by 8.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
LSI is trading at $26.56 per share, or 20x forward P/E. Is now a good time to buy? See for yourself 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 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.
