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 is one stock under $50 that could 10x and two that may have trouble.
Two Stocks Under $50 to Sell:
Sensata Technologies (ST)
Share Price: $35.72
Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.
Why Do We Steer Clear of ST?
- Annual sales declines of 4.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Anticipated sales growth of 2.1% for the next year implies demand will be shaky
- Gross margin of 30.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
At $35.72 per share, Sensata Technologies trades at 10x forward P/E. Read our free research report to see why you should think twice about including ST in your portfolio.
Sixth Street Specialty Lending (TSLX)
Share Price: $20.51
Originally launched as TPG Specialty Lending before rebranding in 2020, Sixth Street Specialty Lending (NYSE:TSLX) is a business development company that provides customized financing solutions to middle-market companies across various industries.
Why Do We Think TSLX Will Underperform?
- Muted 5.3% annual revenue growth over the last two years shows its demand lagged behind its financials peers
- Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat
Sixth Street Specialty Lending’s stock price of $20.51 implies a valuation ratio of 10.7x forward P/E. Check out our free in-depth research report to learn more about why TSLX doesn’t pass our bar.
One Stock Under $50 to Buy:
LendingClub (LC)
Share Price: $16.16
Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE:LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Why Is LC a Top Pick?
- Impressive 25.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 79.1% annually, topping its revenue gains
LendingClub is trading at $16.16 per share, or 9.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.