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1 Stock Under $50 for Long-Term Investors and 2 to Approach with Caution

Barchart·05/02/2025 04:22:11
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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 with huge potential and two that could be down big.

Two Stocks Under $50 to Sell:

Intel (INTC)

Share Price: $19.93

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.

Why Are We Out on INTC?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.9% annually over the last five years
  2. Operating margin declined by 47.1 percentage points over the last five years as its sales cratered
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 25.3 percentage points

At $19.93 per share, Intel trades at 33.2x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).

Campbell's (CPB)

Share Price: $35.95

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.

Why Are We Wary of CPB?

  1. Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Estimated sales growth of 1.4% for the next 12 months implies demand will slow from its three-year trend
  3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 2.9 percentage points

Campbell's is trading at $35.95 per share, or 11.2x forward P/E. If you’re considering CPB for your portfolio, see our FREE research report to learn more.

One Stock Under $50 to Buy:

Vital Farms (VITL)

Share Price: $35.30

With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter.

Why Will VITL Beat the Market?

  1. Stellar 18.9% growth in unit sales over the past two years demonstrates the high demand for its products
  2. Market share will likely rise over the next 12 months as its expected revenue growth of 22.1% is robust
  3. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 193% annually

Vital Farms’s stock price of $35.30 implies a valuation ratio of 29x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks That Overcame Trump’s 2018 Tariffs

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.

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