When looking for new stocks to invest in, it’s hard to find a good balance of affordability and growth potential. In this article, we’ll talk about some of the best stocks under $50 but over $20.
Stocks within the $20 to $50 range typically have more stability and long-term potential than a penny stock and are more affordable than some of the biggest names on the stock market.
Looking for something a bit more affordable than the best stocks under $50?
No matter what you’re looking for, there are investment options on the market for every price point.
What You Should Look for in Stocks Under $50
When looking at stocks under $50, you’ll want to look at their most recent financial data as well as their recent stock performance.
If their revenue and earnings per share numbers have been beating analyst expectations, that’s often an indication that the stock price will follow.
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Best Stocks Under $50 to Buy
These stock picks were selected to fit into almost any investment portfolio, as they are all-arounders.
If you’re just starting your search for the best stocks under $5, we recommend checking these out first.
Tenable Holdings Inc. (NASDAQ: TENB)
Tenable Holdings is a cybersecurity company that works with businesses throughout the United States to develop safe and secure infrastructure.
Over the past few years, many companies have switched to working partially or entirely online.
This means they require a reliable online infrastructure for their employees.
Tenable Holdings offers threat detection services that help companies keep their systems safe.
The company offers a freemium product called Nessus, which gives individuals and small businesses the ability to scan their networks for potential threats and address any problems that arise.
Tenable has set itself apart from its competitors by detecting and resolving threats within a matter of hours.
This is one of the fastest response times on the market.
Tenable also offers a selection of paid products for larger companies that provide more advanced cybersecurity features.
This company has seen steady revenue growth and customer growth this year.
Its profit margins have also improved and are expected to continue to improve in 2022.
Simply Good Foods (NASDAQ: SMPL)
Simply Good Foods is a company that makes healthy snacks and drinks, such as protein bars, shakes, and more.
The company is based in Denver, Colorado, and has two well-known subsidiaries: Atkins and Quest Nutrition.
Simply Good Foods stock has been on a steady upward trajectory over the past year.
This is likely due to its strong financial performance over the past few quarters.
The company has been consistently beating its earnings estimates recently, indicating that its business model is working.
While SGF products aren’t going to appeal to every consumer, it has an established following.
The Atkins brand has been around for decades and is a trusted name in the health foods industry.
If Simply Good Foods can keep up its positive performance in future quarters, the stock price could keep growing as well.
DermTech Inc. (NASDAQ: DMTK)
DermTech is a healthcare company based in the San Diego area, and its first product is a genomic test for melanoma.
It stands out from its competitors because it uses a sticker to painlessly collect skin samples.
The company also plans on expanding to offer tests for other types of skin cancer.
This is a market with huge potential for growth.
DermTech’s tests are more efficient and more comfortable than other tests for melanoma and are also more accurate and more affordable.
In fact, because these tests are so accurate, many cancer specialists recommend them for their patients.
DermTech’s revenue has improved this year; however, it will take time for this company to be fully profitable.
This healthcare company has excellent long-term potential, although we can expect to see some volatility in the short term.
At a share price below $50, this stock has a lot of potential at an affordable entry price.
Top Stocks Under 50 Dollars
These stock picks represent companies that provide products or services that are in high demand.
Pay attention to these stocks, as their exceptionally dedicated customer bases could provide a lot of potential for future growth.
Robinhood Markets Inc. (NASDAQ: HOOD)
Robinhood is an app that dramatically changed the way consumers build their investment portfolios.
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This app caters to young people and other consumers that may not otherwise have access to investing tools.
It allows traders to invest in small companies or giants with high market capitalizations.
By offering fractional shares, cash management, crypto investments, and other unique features like exchange-traded fund options, the company appeals to a wide customer base.
Though, there are some limitations, including no current support for mutual funds.
Robinhood went public in July 2021 and has gained a lot of attention since then.
Not all of this attention has been positive.
Robinhood has attracted scrutiny from the SEC because of the way the company processes its order flow.
So far, Robinhood has been able to resolve these issues and move forward.
The company recently started providing IPO access to many of its investors.
This allows individual retail investors to get in on the ground floor of exciting new companies.
We can expect to see some volatility in this stock’s early stages.
However, its huge subscriber base is not something to be ignored.
This app has already built a huge customer base and has the potential to generate massive amounts of revenue if it continues expanding its product offerings.
So, currently, the stock trades for less than $50, but who knows how long that will last.
Bank of America (NYSE: BAC)
Bank of America is one of the “Big Four” banks in the U.S., so you might be surprised to find that it’s currently trading at less than $50 per share.
Although the market has been volatile this year, Bank of America has seen strong growth overall.
Bank stocks are cyclical, so they can fluctuate with the broader economy.
Observant investors can use this to their advantage with Bank of America and other financial stocks.
Over the past few years, Bank of America has made a concerted effort to consolidate and streamline its operations.
The company also expanded its digital banking solutions during COVID-19 to provide better service for customers.
BAC stock has seen consistent and steady growth this year and is definitely one to watch moving forward.
Bank Stocks like this can be really solid for investors with a lower risk tolerance.
Best Dividend Stocks Under $50
Dividend stocks are great vehicles for passive income, and stocks with a share price below $50 offer an affordable option to jump into this investment strategy.
Keep reading our picks to see if one of these dividend stocks can fit in your portfolio.
Enterprise Products Partners (NYSE: EPD)
Enterprise Products Partners is an energy company that deals with both crude oil and natural gas.
This is a midstream company based in Houston, which means it runs pipelines and operates processing and storage facilities as well.
If you’re looking for a dividend stock under $50, EPP can provide a huge payout over time.
Its current dividend yield is over 8 percent, which is particularly huge for energy companies.
The company also consistently increased its dividend each year for the past few decades, proving that it’s committed to providing payouts for investors.
Many investors have been concerned about investing in oil due to the current concern about climate change.
However, oil isn’t going anywhere in the short term — even with electric vehicles on the horizon.
While many investors are waiting on the shift to electric cars, there’s still a ways to go before this technology becomes widely adopted.
EPP also deals in natural gas, which produces lower emissions and is in high demand right now.
Energy companies have done well this year, as pandemic restrictions have lifted, and consumers have started driving again.
Overall, this stock is an excellent income investment and is definitely one to watch moving forward.
Also Read: Trade Ideas Review
Top Technology Stocks Under $50
Today, companies in the technology sector are extremely popular with investors because of their potential for outstanding returns.
Follow along to find out our best picks for technology stocks under $50.
Sonos Inc. (NASDAQ: SONO)
Sonos is an audio technology company that is known for its speakers.
The company is based in Santa Barbara, California, but it maintains a global presence.
Over the years, it has partnered with a number of other music and tech companies.
Current Sonos products work with popular music services like Spotify, Pandora, iHeartRadio, and more.
Its products also work with voice assistant services like Amazon Alexa, Apple Siri, and Google Voice.
Sonos went public in 2018.
The company’s stock price popped earlier in the spring after delivering a promising earnings report in May.
Sonos’ second-quarter sales were up 90 percent year-over-year, which is very impressive.
This stock has dropped slightly since peaking a few months ago; though, it remains one of the top growth stocks on our list.
This presents an opportunity for investors to buy this promising tech stock at an affordable price.
While there’s plenty of competition in the audio tech industry, Sonos has built a strong brand that stands out.
The company’s integrations with other popular tech products make them particularly appealing to new customers.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
Biotech Stocks Under $50
Biotech stocks can present explosive opportunities for investors who get in on the ground floor.
If you’re looking for a biotech stock to add to your portfolio but don’t know where to start your search, check out our picks.
Sage Therapeutics (NASDAQ: SAGE)
Sage Therapeutics is a biotechnology company with a focus on nervous system disorders.
The company is currently developing solutions for a variety of chronic health issues.
Sage Therapeutics already has a treatment for postpartum depression on the market.
The Sage team is also developing treatments for major depressive disorder, generalized anxiety disorder, and Parkinson’s, Alzheimer’s, and Huntington’s diseases, just to name a few.
One of its drug candidates, SAGE-718, recently received fast track designation from the FDA to treat Huntington’s disease.
Sage Therapeutics has also demonstrated a commitment to its community through its SageCitizen Social Impact Initiative.
Sage stock has struggled this year, but these promising changes indicate that a turnaround may be coming.
If this is the case, now could be a good time to buy while the stock is down.
Best Stocks Under $50: Final Thoughts
Stocks in the range of $20 and $50 are a great option for investors on a budget.
Investing in these stocks is much less risky than cheaper penny stocks, but buying a share still won’t break the bank.
Keep an eye on the stocks under $50 we listed in this article, as many could break out of the $50 range soon.
This means you’ll want to add them to your portfolio while prices are still low.
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