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. That said, here is one stock under $50 with massive upside potential and two best left ignored.
Two Stocks Under $50 to Sell:
ScanSource (SCSC)
Share Price: $38.57
Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers.
Why Is SCSC Risky?
- Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Underwhelming 8.2% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $38.57 per share, ScanSource trades at 10.4x forward P/E. Read our free research report to see why you should think twice about including SCSC in your portfolio.
Provident Financial Services (PFS)
Share Price: $18.24
Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE:PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.
Why Does PFS Worry Us?
- Net interest margin of 3.2% reflects its high servicing and capital costs
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 7.1% annually while its revenue grew
- Tangible book value per share stagnated over the last five years and signals the need for new capital management strategies
Provident Financial Services’s stock price of $18.24 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.
One Stock Under $50 to Watch:
Leonardo DRS (DRS)
Share Price: $42.27
Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services.
Why Is DRS on Our Radar?
- Annual revenue growth of 13.6% over the past two years was outstanding, reflecting market share gains this cycle
- Average backlog growth of 50.1% over the past two years shows it has a steady sales pipeline that will drive future orders
- Additional sales over the last two years increased its profitability as the 19.2% annual growth in its earnings per share outpaced its revenue
Leonardo DRS is trading at $42.27 per share, or 36.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2024 "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 5 Growth Stocks for this month. 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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