Are you looking for the best growth stocks under $50 to buy with massive upside and weekly options?
What are Growth Stocks?
Growth stocks are shares in promising companies that expect to grow revenue and earnings much faster than the broader market. Many of these companies are small, newer companies in the small to mid-cap sector.
Growth stocks usually follow certain characteristics like:
- Fast revenue growth potential
- New products or newly created sector
- High volume and can swing in price quickly
- Major targets for short sellers
- Doesn’t pay a dividend
- Great investments to hold for the long term
Growth stocks offer massive upside but there is a lot more risk as well. If you’re looking to grow your portfolio quickly or want to swing trade stocks for profit then growth stocks under $50 is a good place to start.
Best Growth Stocks Under $50
|Ticker||Company Name||Last Price||Market Cap|
|MARA||Marathon Digital Group||$6.22||726.8M|
1. Lucid Motors (LCID)
The company already has over 17,000 preorders with a $1.3 billion order book as of September 2021.
The Lucid Air will disrupt the luxury EV market and Peter Rawlinson, a former Tesla engineer, helped design the Tesla Model S.
Lucid’s most premium EV, the Lucid Air Dream Edition, received an official EPA rating of 520 miles of range. That’s 100 miles more than the next closest competitor, the Tesla Model S Plaid.
Lucid is planning to produce 20,000 EVs in 2022 and looks extremely attractive as a long-term competitor to Tesla.
2. Robinhood (HOOD)
Robinhood is a popular stock and crypto trading app with 18 million active investors on its platform.
The company generates the bulk of its revenue through order flow by rerouting buy and sell orders to a market maker who pays for this data. The bad news is the SEC may ban order flow in the future to mirror similar policies in the United Kingdom, Canada, and Australia.
Robinhood is dealing with slowing active users and declining revenue per user but that makes sense due to the COVID-19 lockdown boom that sent retail traders in a stock-buying frenzy during the pandemic.
Robinhood is extremely popular with Millenials and the younger generation who will increase their income in the future and most likely stay loyal to Robinhood in the process.
Robinhood has 1.6 million users on the waiting list for its upcoming crypto wallet and will roll out new products in the future.
I don’t like using Robinhood personally but its 18 million active users will mature over time and that’s a pretty valuable userbase in my opinion.
HOOD stock looks like a solid long-term if you’re willing to hold through the short-term chaos.
3. Coursera (COUR)
Coursera is one of the top e-learning platforms that went public in 2021.
Due to the Covid-19 pandemic, many students around the world embraced e-learning and took college-level courses from home.
Coursera provides world-class education from many of the world’s top universities with a simple monthly subscription.
I expect the e-learning market to explode this decade and it’s one of the cheaper stocks I’m watching now.
4. FuboTV (FUBO)
FuboTV is a paid streaming platform that aims to disrupt the legacy cable market with comprehensive monthly sports & TV packages.
The company grew to over 500,000 paying subscribers so far with no signs of slowing down. Many subscribers enjoy watching TV on the go and FuboTV will benefit from the cord-cutting movement.
5. Jumia (JMIA)
Jumia is the largest e-commerce player in Africa that many investors refer to as “The Amazon of Africa.”
Africa will become a top investment hub during this decade and Jumia is one of the better ways to profit from the African digital revolution.
The company generates the bulk of its revenue through Jumia e-commerce, Jumia Food, and Jumia Pay. All of these key markets will grow in the future so investors get to own a fast-growing company with just a $2 billion market cap.
6. Uber (UBER)
Uber suffered greatly during the Great lockdown of 2021 but shows signs of bouncing back during the Great reopening. While ridesharing hasn’t recovered, Uber Eats grew massively during the pandemic and Uber continues to expand its grocery delivery business too.
UBER stock still trades near its 2019 IPO levels but I don’t think that will last for long. Big Tech stocks eventually march towards a $1 trillion market cap and I think Uber stock could easily 10x within the next couple of years.
7. Blink Charging (BLNK)
Blink Charging is one of America’s fastest-growing EV charging companies with over 200,000 customers across the world. The company will benefit from the shift to EVs as more governments ban the sale of ICE vehicles in the future.
BLNK stock trades at a massive price to sales ratio of 200, which may scare away investors in the short term. However, Blink Charging experienced massive revenue growth last year so many EV charging investors want to get in on the bottom floor.
Blink is one of the best EV charging stocks to buy now despite its lofty valuation because revenue could accelerate alongside the global EV adoption.
8. Marathon Digital (MARA)
Marathon Digital is a Bitcoin mining company with over 22,000 active miners that produce hundreds of freshly mined BTC every month. The company plans to expand its cryptocurrency mining farm to well over 130,000+ miners by Q2 2022 with a goal of becoming the largest Bitcoin mining company in America.
Bitcoin is still the most dominant cryptocurrency and many Bitcoin bulls believe Bitcoin will hit over $100,000 by 2022. Marathon Digital will profit from rising Bitcoin prices and a rapidly expanding mining fleet. Blackrock bought a 6.71% stake in Marathon Digital holdings so all signs look extremely bullish for MARA shares.
With just a $4 billion market cap, MARA stock is one of the better long-term plays if you want exposure to crypto mining stocks.
9. AMC Theatres (AMC)
AMC is the world’s largest movie theater chain and has recently gotten the attention of Wall Street and retail investors after the whole AMC-Gamestop fiasco.
AMC was one of the hottest short squeeze stocks for 2021 and soared as high as $65 before consolidating around the $40 range.
10. Similar Web (SMWB)
Similar Web is a website traffic analytics platform that allows companies and individual users to generate more revenue using data. The company was recently IPOed in 2021 and already has several major clients such as Google and Ford.
11. SEMRush (SEMR)
SEMRush is an SEO & internet marketing tool that helps businesses increase their website traffic using comprehensive data. Companies can perform SEO, content marketing, competitor research, PPC (pay per click), and social marketing using just 1 all-in-one tool.
Some of SEMrush’s customers are Tesla, Amazon, Quora, Walmart, Proctor & Gamble, and Apple.
In Q2 2021, SEMrush generated $45 million in revenue (Up 52% YoY) and finished the quarter with over 76,000 paying customers. ARR reached $188 million and SEMRush is trending closely towards profitability with a net loss of only $279,000 in Q2.
SEMR stock currently trades at a fair Price to Sales ratio of 24 so it’s a better fair price for one of the leading digital marketing companies.
At just a $3 billion market cap, I believe SEMR stock has a lot of room to grow into the future and could 5 to 10x in the next couple of years. As more people get internet access, companies both small and large will need comprehensive tools & analytics to reach customers online.
I’ve personally used the tool and it’s an incredible resource for growing your internet business.
12. Chargepoint (CHPT)
Chargepoint is the largest EV charging station company in American with lots of growth potential in the future. The company sells hardware and software to help consumers and businesses charge their electric cars using AC & DC charging technology.
Chargepoint is a wonderful passive investment towards the overall growth of the EV industry and they will perform well no matter which EV company sells the most electric vehicles.
EV makers like Tesla, Lucid, and Fisker will continue producing cars at a rapid pace and Chargepoint has the ability to charge every single one of them.
CHPT stock has bounced off $20 support a whopping 4 times during 2021 yet achieved record Q2 revenue of around $50+ million. This is a long-term growth play on the EV industry with massive upside and I won’t even consider selling a single share until 2030 when EV adoption becomes mainstream.
13. DraftKings (DKNG)
DraftKings is my favorite sports gambling & entertainment stock but it’s been a frustrating ride for DKNG investors.
DKNG shares hit $60 during the start of the 2021 NFL season but have crashed after the company experienced declining revenue in 4 straight quarters.
The problem lies in U.S. federal sports betting regulations and DraftKings will benefit from legalized sports betting nationwide.
The good news is DKNG is still up 200% since the SPAC deal last year and I’ll probably buy some shares on the dip.
How to Invest in Growth Stocks Under $50
Some of the simple steps you can take to start investing in these mid-range growth stocks:
Step 1: Pick a stock
There are literally thousands of stocks under $50 so I use Finviz to build this list of growth stocks under $50.
Go to the Stock Screener and change “Price” to Under 50 and “Dividend Yield” to None (0%).
You get a list of 3,000+ stocks so I sort them by market cap to get a useful list. You can also filter out NASDAQ or NYSE stocks by selecting “Exchange”.
If you’re interested in trading weekly options to generate income then focus on stocks with high volume and high options premium. Generally, the more popular growth stocks will have more options activity.
You can sell covered calls on high-volume growth stocks to generate weekly passive income while you hold the underlying shares.
Step 2: Analyze the company
When analyzing growth stocks, I look for things like potential revenue growth, new products/services in a disruptive industry, solid management, and lots of retail investor appeal.
Step 3: Buy the stock
You need a stock brokerage account to buy some high-quality growth stocks. Here are some of my favorite brokers listed below:
Fidelity Investments is my preferred full service broker for buying and selling stocks in a traditional brokerage account and IRA retirement account. $0 stock trades, 24/7 phone customer support, and an easy to use app are just some of the reasons why I use Fidelity.