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 are three stocks under $50 to swipe left on and some alternatives you should look into instead.
onsemi (ON)
Share Price: $42.54
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Does ON Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.6% annually over the last two years
- Projected sales decline of 10.2% over the next 12 months indicates demand will continue deteriorating
- Poor free cash flow margin of 13.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
onsemi is trading at $42.54 per share, or 15.5x forward P/E. To fully understand why you should be careful with ON, check out our full research report (it’s free).
Hilton Grand Vacations (HGV)
Share Price: $38.16
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE: HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Why Does HGV Give Us Pause?
- Sales trends were unexciting over the last two years as its 11.6% annual growth was below the typical consumer discretionary company
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
- High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $38.16 per share, Hilton Grand Vacations trades at 10.3x forward P/E. If you’re considering HGV for your portfolio, see our FREE research report to learn more.
Mercury Systems (MRCY)
Share Price: $50.99
Founded in 1981, Mercury Systems (NASDAQ: MRCY) specializes in providing processing subsystems and components for primarily defense applications.
Why Are We Out on MRCY?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 28% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Mercury Systems’s stock price of $50.99 implies a valuation ratio of 71.8x forward P/E. Dive into our free research report to see why there are better opportunities than MRCY.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
