1 Stock Under $50 to Keep an Eye On and 2 We Avoid

via StockStory

SSTK Cover Image

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $50 with massive upside potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Shutterstock (SSTK)

Share Price: $18.40

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Why Do We Think Twice About SSTK?

  1. Focus on expanding its platform came at the expense of monetization as its average revenue per request fell by 18.6% annually
  2. Projected sales decline of 1% for the next 12 months points to a tough demand environment ahead
  3. Annual earnings per share growth of 2.5% underperformed its revenue over the last three years, partly because it diluted shareholders

Shutterstock’s stock price of $18.40 implies a valuation ratio of 3x forward EV/EBITDA. Check out our free in-depth research report to learn more about why SSTK doesn’t pass our bar.

TFS Financial (TFSL)

Share Price: $14.47

Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ:TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.

Why Is TFSL Risky?

  1. Muted 3.9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Net interest margin of 1.7% reflects its high servicing and capital costs
  3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2% annually

At $14.47 per share, TFS Financial trades at 2.1x forward P/B. To fully understand why you should be careful with TFSL, check out our full research report (it’s free).

One Stock Under $50 to Watch:

Rivian (RIVN)

Share Price: $16.72

The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.

Why Do We Like RIVN?

  1. Annual revenue growth of 24.2% over the past two years was outstanding, reflecting market share gains this cycle
  2. Additional sales over the last two years increased its profitability as the 33.4% annual growth in its earnings per share outpaced its revenue

Rivian is trading at $16.72 per share, or 3.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

1 Stock Under $50 to Keep an Eye On and 2 We Avoid | WSIL