Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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 are three stocks under $50 to swipe left on and some alternatives you should look into instead.
nLIGHT (LASR)
Share Price: $30.27
Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.
Why Are We Out on LASR?
- Muted 2.6% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
- 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
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $30.27 per share, nLIGHT trades at 125.5x forward P/E. If you’re considering LASR for your portfolio, see our FREE research report to learn more.
Sotera Health Company (SHC)
Share Price: $16.02
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Why Does SHC Give Us Pause?
- Smaller revenue base of $1.15 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 4.2% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 9.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Sotera Health Company’s stock price of $16.02 implies a valuation ratio of 17.6x forward P/E. Read our free research report to see why you should think twice about including SHC in your portfolio.
LGI Homes (LGIH)
Share Price: $48.90
Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.
Why Do We Pass on LGIH?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 10.4% declines over the past two years
- Waning returns on capital imply its previous profit engines are losing steam
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
LGI Homes is trading at $48.90 per share, or 11.4x forward P/E. To fully understand why you should be careful with LGIH, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
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-small-cap company Comfort Systems (+782% 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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