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.
These dynamic can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one stock under $50 that could 10x and two best left ignored.
Two Stocks Under $50 to Sell:
Werner (WERN)
Share Price: $29.89
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Why Do We Avoid WERN?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years
- Earnings per share fell by 26% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $29.89 per share, Werner trades at 24.6x forward price-to-earnings. Check out our free in-depth research report to learn more about why WERN doesn’t pass our bar.
TTM Technologies (TTMI)
Share Price: $22.27
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Do We Think TTMI Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.1% annually over the last two years
- Flat earnings per share over the last two years underperformed the sector average
- ROIC of 4.4% reflects management’s challenges in identifying attractive investment opportunities
TTM Technologies’s stock price of $22.27 implies a valuation ratio of 11.5x forward price-to-earnings. To fully understand why you should be careful with TTMI, check out our full research report (it’s free).
One Stock Under $50 to Watch:
IonQ (IONQ)
Share Price: $24.35
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 Do We Like IONQ?
- Annual revenue growth of 96.7% over the last two years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 98.5%
- Adjusted operating margin improvement of 1,182.4 percentage points over the last four years demonstrates its ability to scale efficiently
IonQ is trading at $24.35 per share, or 63.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
