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 massive upside potential and two best left ignored.
Two Stocks Under $50 to Sell:
Tenable (TENB)
Share Price: $32.03
Founded in 2002 by three cybersecurity veterans, Tenable (NASDAQ: TENB) provides software as a service that helps companies understand where they are exposed to cyber security risk and how to reduce it.
Why Is TENB Not Exciting?
- Annual revenue growth of 16.9% over the last three years was below our standards for the software sector
- Estimated sales growth of 7.5% for the next 12 months implies demand will slow from its three-year trend
- Poor expense management has led to operating losses
Tenable’s stock price of $32.03 implies a valuation ratio of 4x forward price-to-sales. Read our free research report to see why you should think twice about including TENB in your portfolio.
Genpact (G)
Share Price: $43.87
Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.
Why Does G Worry Us?
- Estimated sales growth of 3.3% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share lagged its peers over the last two years as they only grew by 9.4% annually
- Free cash flow margin shrank by 4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Genpact is trading at $43.87 per share, or 12.2x forward P/E. To fully understand why you should be careful with G, check out our full research report (it’s free).
One Stock Under $50 to Watch:
Varonis (VRNS)
Share Price: $46.09
Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ: VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.
Why Are We Positive On VRNS?
- Ability to secure long-term commitments with customers is evident in its 18% ARR growth over the last year
- Software is difficult to replicate at scale and leads to a stellar gross margin of 82.3%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
At $46.09 per share, Varonis trades at 8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
