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1 Stock Under $50 with Exciting Potential and 2 We Avoid

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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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $50 with huge potential and two that may have trouble.

Two Stocks Under $50 to Sell:

BrightView (BV)

Share Price: $13.90

An official field consultant for Major League Baseball, BrightView (NYSE: BV) offers landscaping design, development, and maintenance.

Why Should You Dump BV?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.7% annually over the last two years
  2. Earnings per share have contracted by 2.5% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
  3. 5.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

BrightView’s stock price of $13.90 implies a valuation ratio of 15.4x forward P/E. To fully understand why you should be careful with BV, check out our full research report (it’s free).

PennyMac Mortgage Investment Trust (PMT)

Share Price: $12.25

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

Why Are We Cautious About PMT?

  1. Muted 3.5% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Estimated net interest income decline of 145% for the next 12 months implies a challenging demand environment
  3. Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 4.8% annually over the last five years

PennyMac Mortgage Investment Trust is trading at $12.25 per share, or 0.8x forward P/B. If you’re considering PMT for your portfolio, see our FREE research report to learn more.

One Stock Under $50 to Buy:

Super Micro (SMCI)

Share Price: $44.91

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Why Are We Backing SMCI?

  1. Annual revenue growth of 75.6% over the last two years was superb and indicates its market share increased during this cycle
  2. Enormous revenue base of $21.97 billion provides significant distribution advantages
  3. Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability

At $44.91 per share, Super Micro trades at 16.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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-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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