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.
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 that may have trouble.
Two Stocks Under $50 to Sell:
Origin Bancorp (OBK)
Share Price: $34.08
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Why Does OBK Give Us Pause?
- Sales trends were unexciting over the last two years as its 1.3% annual growth was below the typical bank company
- Net interest margin shrank by 18.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the yields on its loan book are decreasing or the market is becoming more competitive
Origin Bancorp is trading at $34.08 per share, or 0.9x forward P/B. Read our free research report to see why you should think twice about including OBK in your portfolio.
Truist Financial (TFC)
Share Price: $40.50
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Do We Think Twice About TFC?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 1.4% over the last four years was below our standards for the bank sector
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- High interest payments compared to its earnings raise concerns about its ability to service its debt consistently
At $40.50 per share, Truist Financial trades at 0.9x forward P/B. Check out our free in-depth research report to learn more about why TFC doesn’t pass our bar.
One Stock Under $50 to Buy:
Distribution Solutions (DSGR)
Share Price: $26.58
Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.
Why Are We Backing DSGR?
- Annual revenue growth of 17.8% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 24.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 3.8 percentage points over the last five years, giving the company more chips to play with
Distribution Solutions’s stock price of $26.58 implies a valuation ratio of 15.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
