Stocks that trade at under $50 per share are termed as stocks under $50. In most cases, stocks under $50 belong to large, well-established companies and are available at a good discount. Thus, stocks under $50 offer excellent opportunities for investors to enter the growth and success story of companies with high market capitalizations.
However, it needs to be considered that when stocks of top companies trade at under $50, the companies are going through challenging times. There are valid negative sentiments when stocks of valuable companies trade at such a discount. Yet, stocks under $50 offer value and growth opportunities to investors.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| ADES | Advanced Emissions Solutions, Inc. | $5.38 | -51.09% | 99.8M |
| ALRM | Alarm.com Holdings, Inc. | $97.00 | 111.98% | 4.8B |
| ARES | Ares Management Corporation | $45.28 | 22.05% | 11.7B |
| BBAR | Banco BBVA Argentina S.A. | $2.81 | -38.91% | 573.9M |
| BERY | Berry Global Group, Inc. | $52.17 | 13.31% | 7.0B |
| BGSF | BG Staffing, Inc. | $13.45 | -36.71% | 138.8M |
| BMA | Banco Macro S.A. | $13.36 | -55.89% | 1.5B |
| BOOM | DMC Global Inc. | $50.91 | 20.38% | 752.1M |
| BOOT | Boot Barn Holdings, Inc. | $58.35 | 37.68% | 1.7B |
| CZZ | Cosan Limited | $17.48 | -23.00% | 3.9B |
| DISCA | Discovery, Inc. | $37.49 | 23.65% | 17.0B |
| EBIX | Ebix, Inc. | $45.63 | 28.03% | 1.4B |
| ECPG | Encore Capital Group, Inc. | $30.24 | -15.93% | 947.9M |
| EDN | Empresa Distribuidora y Comercializadora Norte Sociedad Anonima | $3.50 | -35.42% | 134.3M |
| ENSG | The Ensign Group, Inc. | $85.18 | 89.84% | 4.6B |
| ENTG | Entegris, Inc. | $112.33 | 100.84% | 15.2B |
| ETSY | Etsy, Inc. | $213.59 | 322.78% | 26.9B |
| EXEL | Exelixis, Inc. | $22.14 | 22.86% | 6.9B |
| FND | Floor & Decor Holdings, Inc. | $101.41 | 108.96% | 10.5B |
| FORM | FormFactor, Inc. | $49.29 | 81.55% | 3.8B |
| GGAL | Grupo Financiero Galicia S.A. | $7.48 | -46.53% | 1.5B |
| GLPI | Gaming and Leisure Properties, Inc. | $41.30 | -10.59% | 9.5B |
| HGV | Hilton Grand Vacations Inc. | $33.85 | 0.27% | 2.9B |
| HROW | Harrow Health, Inc. | $8.63 | 22.93% | 222.2M |
| INVA | Innoviva, Inc. | $12.34 | -13.34% | 1.3B |
| IRBT | iRobot Corporation | $98.94 | 80.61% | 2.8B |
| IRMD | IRadimed Corporation | $22.94 | -11.12% | 281.5M |
| JHX | James Hardie Industries plc | $29.28 | 35.62% | 13.0B |
| JYNT | The Joint Corp. | $29.82 | 92.51% | 418.7M |
| KEM | KEMET Corporation | $14.27 | 4.47% | 2.2B |
| MBUU | Malibu Boats, Inc. | $76.08 | 72.71% | 1.6B |
| MHH | Mastech Digital, Inc. | $17.45 | 40.95% | 198.6M |
| NMIH | NMI Holdings, Inc. | $22.57 | -30.89% | 1.9B |
| OMF | OneMain Holdings, Inc. | $50.26 | 17.82% | 6.8B |
| PCOM | Points International Ltd. | $14.81 | -12.37% | 195.9M |
| PFSI | PennyMac Financial Services, Inc. | $59.69 | 76.23% | 4.3B |
| PKBK | Parke Bancorp, Inc. | $18.31 | -13.59% | 217.0M |
| RBA | Ritchie Bros. Auctioneers Incorporated | $63.04 | 45.35% | 6.9B |
| SAMG | Silvercrest Asset Management Group Inc. | $15.34 | 24.61% | 220.5M |
| SEM | Select Medical Holdings Corporation | $28.40 | 18.88% | 3.8B |
| SKX | Skechers U.S.A., Inc. | $36.56 | -7.42% | 5.7B |
| SLM | SLM Corporation | $13.23 | 15.24% | 5.0B |
| SLP | Simulations Plus, Inc. | $74.61 | 121.33% | 1.5B |
| SUPN | Supernus Pharmaceuticals, Inc. | $29.94 | 27.03% | 1.6B |
| TKC | Turkcell Iletisim Hizmetleri A.S. | $5.54 | -8.13% | 4.9B |
| TWTR | Twitter, Inc. | $48.06 | 44.80% | 38.2B |
| WES | Western Midstream Partners, LP | $15.21 | -18.66% | 6.3B |
| YETI | YETI Holdings, Inc. | $70.21 | 105.35% | 6.1B |
Factors to Consider Before Investing in Stocks Under $50
As discussed, investors must consider the challenges faced by established companies leading to stock price under $50. They must understand the reasons behind the downturn and if and when the downward trend can be reversed.
For this, investors must consider the foundational strengths and financial health of stocks under $50. The fundamental analysis should include the study of sales and revenue growth, net income, profit margin, price-to-earnings ratio, and valuation of the companies. The basics should be strong enough to promise trend reversal and the opportunity for value investing.
Investors should also be aware that investing in stocks under $50 follows a high-risk high-reward profile. The shares that appear cheap at less than $50 may not actually be cheap and may never be able to recover from the declining trend.
Which Stocks Under $50 Should I Buy?
Many stocks trade under $50 on the US stock exchanges. We have aggregated a list of the best stocks under $50 for investors to choose from.
It is significant to note that the price per share is not entirely indicative of the value of stocks. Stocks trading under $50 may or may not be undervalued. Investors must buy stocks under $50 that have demonstrated steady sales growth of more than 10%, EPS growth of more than 10%, return on equity of more than 15%, and profitability in the past five years.
If stocks under $50 have piqued your interest, you may also enjoy our lists of stocks under $10 and stocks under $5.
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