Financial News

1 Stock Under $50 to Own for Decades and 2 to Be Wary Of

DOLE Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $50 that could 10x and two that could be down big.

Two Stocks Under $50 to Sell:

Dole (DOLE)

Share Price: $14.64

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Why Should You Sell DOLE?

  1. Annual revenue declines of 2% over the last three years indicate problems with its market positioning
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
  3. Gross margin of 8.4% is below its competitors, leaving less money to invest in areas like marketing and production facilities

Dole is trading at $14.64 per share, or 10.6x forward P/E. Read our free research report to see why you should think twice about including DOLE in your portfolio.

Driven Brands (DRVN)

Share Price: $18.20

With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.

Why Are We Wary of DRVN?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
  3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $18.20 per share, Driven Brands trades at 14.1x forward P/E. Dive into our free research report to see why there are better opportunities than DRVN.

One Stock Under $50 to Buy:

Energy Recovery (ERII)

Share Price: $13.17

Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ: ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.

Why Should You Buy ERII?

  1. Annual revenue growth of 15.1% over the last two years was superb and indicates its market share increased during this cycle
  2. Offerings are mission-critical for businesses and result in a best-in-class gross margin of 69.4%
  3. Share buybacks catapulted its annual earnings per share growth to 71.9%, which outperformed its revenue gains over the last two years

Energy Recovery’s stock price of $13.17 implies a valuation ratio of 16.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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