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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with massive upside potential and two that could be down big.
Two Stocks Under $50 to Sell:
Norwegian Cruise Line (NCLH)
Share Price: $18.40
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Why Are We Hesitant About NCLH?
- Sluggish trends in its passenger cruise days suggest customers aren’t adopting its solutions as quickly as the company hoped
- Negative free cash flow raises questions about the return timeline for its investments
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Norwegian Cruise Line is trading at $18.40 per share, or 7x forward P/E. To fully understand why you should be careful with NCLH, check out our full research report (it’s free for active Edge members).
Lumen (LUMN)
Share Price: $10.92
With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE: LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.
Why Should You Dump LUMN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.5% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 16.8% annually, worse than its revenue declines
- Free cash flow margin shrank by 6.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Lumen’s stock price of $10.92 implies a valuation ratio of 3.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than LUMN.
One Stock Under $50 to Buy:
Pinterest (PINS)
Share Price: $26.50
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Will PINS Outperform?
- Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Excellent EBITDA margin of 28.3% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last few years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
At $26.50 per share, Pinterest trades at 12.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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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