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 dynamics 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. Keeping that in mind, here is one stock under $50 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
Sally Beauty (SBH)
Share Price: $12.56
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE: SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
Why Does SBH Give Us Pause?
- Failure to add new stores points to soft demand and a focus on boosting sales at current locations
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Revenue base of $3.73 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
Sally Beauty’s stock price of $12.56 implies a valuation ratio of 5.6x forward P/E. Read our free research report to see why you should think twice about including SBH in your portfolio.
Invesco (IVZ)
Share Price: $26.93
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Are We Out on IVZ?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Sales over the last five years were less profitable as its earnings per share fell by 1.1% annually while its revenue was flat
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $26.93 per share, Invesco trades at 9.9x forward P/E. Check out our free in-depth research report to learn more about why IVZ doesn’t pass our bar.
One Stock Under $50 to Buy:
Talos Energy (TALO)
Share Price: $16.20
Operating its own deepwater production facilities with names like Tarantula, Pompano, and Brutus, Talos Energy (NYSE: TALO) explores for and produces oil and natural gas from offshore wells in the Gulf of Mexico and offshore Mexico.
Why Do We Love TALO?
- Market share has increased this cycle as its 16.9% annual revenue growth over the last eight years was exceptional
- Highly-profitable operating model results in strong unit economics and a top-tier gross margin of 72.4%
- TALO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Talos Energy is trading at $16.20 per share, or 57.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
