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1 Stock Under $50 with Competitive Advantages and 2 Facing Headwinds

SNBR Cover Image

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.

These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one stock under $50 with huge potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Sleep Number (SNBR)

Share Price: $10.10

Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ: SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Why Do We Think SNBR Will Underperform?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 43.2% annually, worse than its revenue
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $10.10 per share, Sleep Number trades at 15.3x forward EV-to-EBITDA. If you’re considering SNBR for your portfolio, see our FREE research report to learn more.

Sirius XM (SIRI)

Share Price: $20.67

Known for its commercial-free music channels, Sirius XM (NASDAQ: SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.

Why Should You Sell SIRI?

  1. Performance surrounding its core subscribers has lagged its peers
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Sirius XM is trading at $20.67 per share, or 6.7x forward P/E. Read our free research report to see why you should think twice about including SIRI in your portfolio.

One Stock Under $50 to Watch:

Montrose (MEG)

Share Price: $23.43

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Why Could MEG Be a Winner?

  1. Market share has increased this cycle as its 17.6% annual revenue growth over the last two years was exceptional
  2. Earnings per share grew by 109% annually over the last two years, massively outpacing its peers
  3. Free cash flow margin jumped by 6.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Montrose’s stock price of $23.43 implies a valuation ratio of 17.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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.

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