The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
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 are three stocks under $50 to swipe left on and some alternatives you should look into instead.
STAAR Surgical (STAA)
Share Price: $17.93
Founded in 1982, STAAR Surgical (NASDAQ:STAA) develops and manufactures implantable lenses for vision correction, focusing on products designed to treat myopia, hyperopia, astigmatism, and presbyopia.
Why Does STAA Worry Us?
- Smaller revenue base of $341.2 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Forecasted revenue decline of 26.2% for the upcoming 12 months implies demand will fall off a cliff
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
STAAR Surgical’s stock price of $17.93 implies a valuation ratio of 24.2x forward price-to-earnings. To fully understand why you should be careful with STAA, check out our full research report (it’s free).
Bruker (BRKR)
Share Price: $47.77
Founded in 1960, Bruker (NASDAQ:BRKR) designs and manufactures high-performance scientific instruments and analytical solutions for molecular and material research, diagnostics, and industrial applications.
Why Are We Hesitant About BRKR?
- Efficiency has decreased over the last two years as its adjusted operating margin fell by 4.6 percentage points
- Free cash flow margin dropped by 7.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Eroding returns on capital suggest its historical profit centers are aging
Bruker is trading at $47.77 per share, or 18.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than BRKR.
Elanco (ELAN)
Share Price: $10.86
Founded in 1954 as part of Eli Lilly, Elanco (NYSE:ELAN) develops, manufactures, and markets products for both pets and livestock, focusing on medicines that prevent and treat disease, improve productivity, and ensure animal welfare.
Why Do We Think Twice About ELAN?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Issuance of new shares over the last five years caused its earnings per share to fall by 3.1% annually while its revenue grew
- Push for growth has led to negative returns on capital, signaling value destruction
At $10.86 per share, Elanco trades at 12.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why ELAN doesn’t pass our bar.
Stocks We Like More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking 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 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
