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.
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 is one stock under $50 that could 10x and two that could be down big.
Two Stocks Under $50 to Sell:
Chewy (CHWY)
Share Price: $28.20
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Are We Wary of CHWY?
- Annual sales growth of 8.5% over the last three years lagged behind its consumer internet peers as its large revenue base made it difficult to generate incremental demand
- Estimated sales growth of 6.1% for the next 12 months implies demand will slow from its three-year trend
- High servicing costs result in an inferior gross margin of 29.4% that must be offset through higher volumes
Chewy is trading at $28.20 per share, or 13.3x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CHWY.
NeoGenomics (NEO)
Share Price: $11.42
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ:NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Why Should You Sell NEO?
- Revenue base of $709.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Push for growth has led to negative returns on capital, signaling value destruction
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $11.42 per share, NeoGenomics trades at 77.3x forward P/E. If you’re considering NEO for your portfolio, see our FREE research report to learn more.
One Stock Under $50 to Buy:
Alignment Healthcare (ALHC)
Share Price: $21.75
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ:ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Do We Love ALHC?
- Customer growth averaged 25.9% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Earnings per share grew by 30.1% annually over the last four years and trumped its peers
- Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
Alignment Healthcare’s stock price of $21.75 implies a valuation ratio of 60.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
/Alphabet%20(Google)%20Image%20by%20Piotr%20Swat%20via%20Shutterstock.jpg)