Beginning investors often think that a low price means that a stock is cheap. That isn’t true -- you’re better off using a ratio like price-to-earnings to see how a stock price compares with its profits -- but a stock price can offer clues.
A stock under $50 might have recently gone public. Companies generally price their IPOs between $15 and $30, giving the price plenty of room to appreciate before it gets into stock split range. It could also mean that the management team might want to keep the price low to entice retail investors.
Whatever the case, low-priced stocks offer an easier entry point for investors of all stripes. If you’re looking for stocks under $50, here are 10 you should be following.
5 Winning Stocks Under $49
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