2 Stocks Under $50 with Promising Prospects and 1 Facing Headwinds

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.

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 are two stocks under $50 with massive upside potential and one best left ignored.

One Stock Under $50 to Sell:

Central Garden & Pet (CENT)

Share Price: $43.07

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Why Does CENT Give Us Pause?

1. Sales tumbled by 1% annually over the last three years, showing consumer trends are working against it
2. Sales are projected to tank by 8.2% over the next 12 months as its demand continues evaporating
3. Underwhelming 7.8% return on capital reflects management’s difficulties in finding profitable growth opportunities

Central Garden & Pet is trading at $43.07 per share, or 14.4x forward P/E. Read our free research report to see why you should think twice about including CENT in your portfolio.

Two Stocks Under $50 to Watch:

Herbalife (HLF)

Share Price: $11.82

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Why Is HLF on Our Radar?

1. Unique products and pricing power lead to a best-in-class gross margin of 86%
2. Free cash flow margin expanded by 4 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Herbalife’s stock price of $11.82 implies a valuation ratio of 0.2x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.

Alignment Healthcare (ALHC)

Share Price: $19.95

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 Will ALHC Beat the Market?

1. Impressive 45.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share grew by 28.5% annually over the last four years, massively outpacing its peers
3. Free cash flow margin jumped by 11 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $19.95 per share, Alignment Healthcare trades at 22.3x forward EV-to-EBITDA. Is now the right 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 (+1,326% 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.