2 Stocks Under $50 for Long-Term Investors and 1 That Underwhelm
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 are two stocks under $50 that could 10x and one that may have trouble.
One Stock Under $50 to Sell:
Gap (GAP)
Share Price: $22.46
Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.
Why Does GAP Fall Short?
- Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 2% growth over the past two years
- Underwhelming 9.4% return on capital reflects management’s difficulties in finding profitable growth opportunities
Gap’s stock price of $22.46 implies a valuation ratio of 9x forward P/E. Check out our free in-depth research report to learn more about why GAP doesn’t pass our bar.
Two Stocks Under $50 to Watch:
Astec (ASTE)
Share Price: $39.78
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Are We Fans of ASTE?
- Solid 9.6% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Operating margin improvement of 4.6 percentage points over the last five years demonstrates its ability to scale efficiently
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.9% outpaced its revenue gains
At $39.78 per share, Astec trades at 10.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Douglas Dynamics (PLOW)
Share Price: $39.87
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Could PLOW Be a Winner?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.4% annual sales growth over the last two years
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 43.6% annually, topping its revenue gains
- Free cash flow margin grew by 11 percentage points over the last five years, giving the company more chips to play with
Douglas Dynamics is trading at $39.87 per share, or 12.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.