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.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one stock under $50 with massive upside potential and two best left ignored.
Two Stocks Under $50 to Sell:
Medifast (MED)
Share Price: $12.30
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Are We Out on MED?
- Annual revenue declines of 38.7% over the last three years indicate problems with its market positioning
- Inability to adjust its cost structure while its revenue declined over the last year led to a 9.5 percentage point drop in the company’s operating margin
- Earnings per share have contracted by 29.9% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Medifast is trading at $12.30 per share, or 0.3x forward EV-to-EBITDA. To fully understand why you should be careful with MED, check out our full research report (it’s free).
Parsons (PSN)
Share Price: $47.90
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Does PSN Give Us Pause?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.1% for the past two years was weak
- Projected sales growth of 4.5% for the next 12 months suggests sluggish demand
- ROIC of 6.9% reflects management’s challenges in identifying attractive investment opportunities
Parsons’s stock price of $47.90 implies a valuation ratio of 14.8x forward P/E. If you’re considering PSN for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Watch:
Flywire (FLYW)
Share Price: $18.63
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Are We Fans of FLYW?
- Average billings growth of 33.9% over the last year enhances its liquidity and shows there is steady demand for its products
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Solid free cash flow generation relative to most peers gives it a cushion and grants it various reinvestment opportunities
At $18.63 per share, Flywire trades at 2.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
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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.
