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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $50 with massive upside potential and two that may have trouble.
Two Stocks Under $50 to Sell:
Applied Digital (APLD)
Share Price: $13.90
Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.
Why Are We Cautious About APLD?
- Revenue growth over the past two years was nullified by the company’s new share issuances as its earnings per share fell by 78.9% annually
- Negative free cash flow raises questions about the return timeline for its investments
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $13.90 per share, Applied Digital trades at 34.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than APLD.
U.S. Bancorp (USB)
Share Price: $48.80
With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.
Why Does USB Fall Short?
- Sizable revenue base leads to growth challenges as its 4.9% annual net interest income increases over the last five years fell short of other banking companies
- Net interest margin of 2.7% reflects its high servicing and capital costs
- Annual tangible book value per share growth of 2% over the last five years lagged behind its banking peers as its large balance sheet made it difficult to generate incremental capital growth
U.S. Bancorp is trading at $48.80 per share, or 1.3x forward P/B. Check out our free in-depth research report to learn more about why USB doesn’t pass our bar.
One Stock Under $50 to Buy:
EVERTEC (EVTC)
Share Price: $34.47
Operating one of Latin America's leading PIN debit networks called ATH, EVERTEC (NYSE: EVTC) is a payment transaction processor and financial technology provider that enables merchants and financial institutions across Latin America and the Caribbean to accept and process electronic payments.
Why Are We Backing EVTC?
- Annual revenue growth of 18.2% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years boosted profitability as its annual earnings per share growth of 19.4% outstripped its revenue performance
- Industry-leading 32.2% return on equity demonstrates management’s skill in finding high-return investments
EVERTEC’s stock price of $34.47 implies a valuation ratio of 9.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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