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. Keeping that in mind, here is one stock under $50 with huge potential and two best left ignored.
Two Stocks Under $50 to Sell:
Kraft Heinz (KHC)
Share Price: $25.93
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Do We Think KHC Will Underperform?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Operating margin declined by 25.1 percentage points over the last year as its sales cratered
At $25.93 per share, Kraft Heinz trades at 13x forward P/E. To fully understand why you should be careful with KHC, check out our full research report (it’s free).
PENN Entertainment (PENN)
Share Price: $20.40
Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.
Why Is PENN Risky?
- Annual revenue growth of 13.6% over the last five years was below our standards for the consumer discretionary sector
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
PENN Entertainment’s stock price of $20.40 implies a valuation ratio of 25.2x forward P/E. Check out our free in-depth research report to learn more about why PENN doesn’t pass our bar.
One Stock Under $50 to Buy:
Remitly (RELY)
Share Price: $24.65
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Is RELY a Top Pick?
- Active Customers have increased by an average of 28.4% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 247% annually, topping its revenue gains
- Free cash flow margin expanded by 35.2 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Remitly is trading at $24.65 per share, or 12.3x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.