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. 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:
Fresh Del Monte Produce (FDP)
Share Price: $37.29
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Are We Out on FDP?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%
- Underwhelming 5.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Fresh Del Monte Produce is trading at $37.29 per share, or 44.2x forward EV-to-EBITDA. To fully understand why you should be careful with FDP, check out our full research report (it’s free for active Edge members).
U.S. Bancorp (USB)
Share Price: $47.32
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 Is USB Not Exciting?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 5.1% over the last five years was below our standards for the banking sector
- Weak unit economics are reflected in its net interest margin of 2.7%, one of the worst among bank companies
- Sizable asset base leads to capital growth challenges as its 2.6% annual tangible book value per share increases over the last five years fell short of other banking companies
At $47.32 per share, U.S. Bancorp trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including USB in your portfolio.
One Stock Under $50 to Buy:
The Trade Desk (TTD)
Share Price: $43.30
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Will TTD Outperform?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 20.4% over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 18.9%, and it turbocharged its profits by achieving some fixed cost leverage
The Trade Desk’s stock price of $43.30 implies a valuation ratio of 6.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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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