1 Stock Under $50 on Our Watchlist and 2 to Ignore

StockStory
03-03
1 Stock Under $50 on Our Watchlist and 2 to Ignore

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 that could 10x and two best left ignored.

Two Stocks Under $50 to Sell:

Shyft (SHYF)

Share Price: $10.02

Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.

Why Do We Avoid SHYF?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 12.5% annually over the last two years
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.3 percentage points
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Shyft is trading at $10.02 per share, or 14.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why SHYF doesn’t pass our bar.

10x Genomics (TXG)

Share Price: $10.92

Founded in 2012, 10x Genomics (NASDAQ:TXG) develops single-cell and spatial genomics solutions, enabling researchers to analyze biological systems at high resolution.

Why Do We Pass on TXG?

  1. Cash-burning history makes us doubt the long-term viability of its business model
  2. Push for growth has led to negative returns on capital, signaling value destruction, and its decreasing returns suggest its historical profit centers are aging

At $10.92 per share, 10x Genomics trades at 2.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TXG.

One Stock Under $50 to Watch:

Confluent (CFLT)

Share Price: $32.01

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Why Are We Fans of CFLT?

  1. Average billings growth of 26.4% over the last year enhances its liquidity and shows there is steady demand for its products
  2. Platform plays a pivotal role in customer workflows as its net revenue retention rate punches in at 119%
  3. Projected revenue growth of 20.8% for the next 12 months suggests its momentum from the last three years will persist

Confluent’s stock price of $32.01 implies a valuation ratio of 9x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.

Get started by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

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