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1 Stock Under $50 Worth Investigating and 2 We Avoid

DSGR 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 that could 10x and two best left ignored.

Two Stocks Under $50 to Sell:

Kyndryl (KD)

Share Price: $30.12

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Why Does KD Fall Short?

  1. Annual sales declines of 4.6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Negative returns on capital show that some of its growth strategies have backfired

Kyndryl’s stock price of $30.12 implies a valuation ratio of 11.8x forward P/E. If you’re considering KD for your portfolio, see our FREE research report to learn more.

National Bank Holdings (NBHC)

Share Price: $38.45

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

Why Are We Wary of NBHC?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Net interest margin shrank by 24 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
  3. Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 1.5 percentage points

National Bank Holdings is trading at $38.45 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than NBHC.

One Stock Under $50 to Watch:

Distribution Solutions (DSGR)

Share Price: $28.68

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Do We Like DSGR?

  1. Annual revenue growth of 17.3% over the past two years was outstanding, reflecting market share gains this cycle
  2. Strong unit economics and 33.7% gross margin provide ample funds for marketing and new product development
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 22.6% annually

At $28.68 per share, Distribution Solutions trades at 18.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 183% over the last five years (as of March 31st 2025).

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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