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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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two best left ignored.
Two Stocks Under $50 to Sell:
Allient (ALNT)
Share Price: $21.63
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Should You Dump ALNT?
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Annual revenue growth of 2.6% over the last two years was below our standards for the industrials sector
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Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
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Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew
Allient is trading at $21.63 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why ALNT doesn’t pass our bar.
Bristol-Myers Squibb (BMY)
Share Price: $49.60
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Are We Cautious About BMY?
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Sizable revenue base leads to growth challenges as its 1.9% annual revenue increases over the last two years fell short of other healthcare companies
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Sales are projected to tank by 4.4% over the next 12 months as demand evaporates
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Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Bristol-Myers Squibb’s stock price of $49.60 implies a valuation ratio of 7.5x forward P/E. Dive into our free research report to see why there are better opportunities than BMY.
One Stock Under $50 to Watch:
Braze (BRZE)
Share Price: $31.93
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Why Do We Like BRZE?
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Customers view its software as mission-critical to their operations as its ARR has averaged 26.8% growth over the last year
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High switching costs and customer loyalty are evident in its net revenue retention rate of 114%
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Operating margin improvement of 10.1 percentage points over the last year demonstrates its ability to scale efficiently