1 Stock Under $50 to Target This Week and 2 to Avoid

1 Stock Under $50 to Target This Week and 2 to Avoid

Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.

These dynamic 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 massive upside potential and two that may have trouble.

Two Stocks Under $50 to Sell:

Match Group (MTCH)

Share Price: $31.20

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Are We Wary of MTCH?

  1. Intense competition is diverting traffic from its platform as its payers fell by 4.5% annually

  2. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend

  3. 2.6 percentage point decline in its free cash flow margin over the last few years reflects the company’s increased investments to defend its market position

Match Group’s stock price of $31.20 implies a valuation ratio of 6.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why MTCH doesn’t pass our bar .

Telephone and Data Systems (TDS)

Share Price: $38.74

Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE:TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.

Why Should You Sell TDS?

  1. Sales tumbled by 1.3% annually over the last four years, showing market trends are working against its favor during this cycle

  2. Earnings per share have dipped by 30.7% annually over the past five years, which is concerning because stock prices follow EPS over the long term

  3. 23× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $38.74 per share, Telephone and Data Systems trades at 3.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TDS .

One Stock Under $50 to Buy:

Verra Mobility (VRRM)

Share Price: $22.90

Managing over 165 million tolling transactions per year, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways.

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