2 Stocks Under $50 for Long-Term Investors and 1 We Avoid

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.

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. Keeping that in mind, here are two stocks under $50 with massive upside potential and one that may have trouble.

One Stock Under $50 to Sell:

Norwegian Cruise Line (NCLH)

Share Price: $17.60

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Why Should You Sell NCLH?

1. Performance surrounding its passenger cruise days has lagged its peers
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $17.60 per share, Norwegian Cruise Line trades at 10.3x forward P/E. Read our free research report to see why you should think twice about including NCLH in your portfolio.

Two Stocks Under $50 to Watch:

Samsara (IOT)

Share Price: $28.80

From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE:IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.

Why Is IOT a Good Business?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 29.8% growth over the last year
2. Estimated revenue growth of 21.8% for the next 12 months implies its momentum over the last two years will continue
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Samsara is trading at $28.80 per share, or 9.1x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Distribution Solutions (DSGR)

Share Price: $27.50

Founded in 1952, Distribution Solutions (NASDAQ:DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Are We Positive On DSGR?

1. Market share has increased this cycle as its 38.1% annual revenue growth over the last four years was exceptional
2. Additional sales over the last two years increased its profitability as the 14% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Distribution Solutions’s stock price of $27.50 implies a valuation ratio of 17.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.