2 Stocks Under $50 Worth Investigating and 1 We Brush Off
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are two stocks under $50 with massive upside potential and one best left ignored.
One Stock Under $50 to Sell:
Accel Entertainment (ACEL)
Share Price: $11.25
Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Why Is ACEL Risky?
- Performance surrounding its video gaming terminals sold has lagged its peers
- Low free cash flow margin of 4.7% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $11.25 per share, Accel Entertainment trades at 10.5x forward P/E. Check out our free in-depth research report to learn more about why ACEL doesn’t pass our bar.
Two Stocks Under $50 to Watch:
Mueller Water Products (MWA)
Share Price: $21.66
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Are We Fans of MWA?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 29.2% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 12.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Mueller Water Products is trading at $21.66 per share, or 14.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Talos Energy (TALO)
Share Price: $16.94
Operating its own deepwater production facilities with names like Tarantula, Pompano, and Brutus, Talos Energy (NYSE:TALO) explores for and produces oil and natural gas from offshore wells in the Gulf of Mexico and offshore Mexico.
What Makes TALO Stand Out?
- Annual revenue growth of 20.3% over the past nine years was outstanding, reflecting market share gains this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 72.5%
- TALO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Talos Energy’s stock price of $16.94 implies a valuation ratio of 9.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.