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 massive upside potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Sprout Social (SPT)

Share Price: $20.59

Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.

Why Are We Hesitant About SPT?

1. Track record of operating losses stem from its decision to pursue growth instead of profits

2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.1% for the last year

Sprout Social’s stock price of $20.59 implies a valuation ratio of 2.6x forward price-to-sales. Read our free research report to see why you should think twice about including SPT in your portfolio, it’s free .

Knowles (KN)

Share Price: $12.37

With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.

Why Are We Out on KN?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last four years

2. Sales are projected to tank by 14.3% over the next 12 months as its demand continues evaporating

3. Earnings per share have dipped by 4.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term

Knowles is trading at $12.37 per share, or 11.4x forward price-to-earnings. To fully understand why you should be careful with KN, check out our full research report (it’s free) .

One Stock Under $50 to Buy:

Core & Main (CNM)

Share Price: $43

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.

Why Is CNM a Good Business?

1. Market share has increased this cycle as its 17% annual revenue growth over the last five years was exceptional

2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

3. Share buybacks catapulted its annual earnings per share growth to 19.5%, which outperformed its revenue gains over the last two years