Investing in the stock market doesn’t always require deep pockets. In fact, some of the best opportunities for outsized returns come from stocks trading under $50. These low-cost shares often fly under the radar, yet they hold massive growth potential—especially when the underlying companies are innovating, expanding, or poised for a breakout.

In this article, we’ve handpicked 5 top stocks under $50 that investors should watch closely in 2025. These aren’t just cheap stocks—they’re smart bets with real catalysts behind them.

Let’s dive into the most promising value-priced plays that could explode this year.

Why Stocks Under $50 Matter

While the price of a stock doesn’t define its value, lower-priced stocks are often more accessible for retail investors and can deliver big percentage gains. A move from $20 to $40 is a 100% return. Compare that to a $500 stock doubling—less likely and more capital-intensive.

Here’s why investors love stocks under $50:

• Affordability: Easier to accumulate shares

• Higher volatility: More potential for rapid gains

• Catalysts: Many are emerging growth companies

• Acquisition targets: Cheap companies often attract M&A activity

But not all low-priced stocks are winners. It’s critical to separate hidden gems from value traps.

What Makes a Stock Likely to “Explode”?

We’re not talking about meme stocks here. A stock that could “explode” typically has:

• Strong fundamentals or rapidly improving ones

• Disruptive products, services, or tech

• Recent earnings surprises or upgrades

• Industry tailwinds or macroeconomic catalysts

• High short interest (a squeeze could boost price)

• Insider buying or smart institutional accumulation

Now that we’ve covered the criteria, let’s look at the top 5 stocks under $50 that check these boxes in 2025.

1. SoFi Technologies (SOFI)

Price (as of April 2025): ~$7.80
Sector: Fintech

Why It Could Explode:

SoFi is transforming the way consumers bank, borrow, and invest. It offers a full suite of financial products—from student loans to stock trading—all in one app.

In 2024, SoFi posted stronger-than-expected earnings and crossed 8 million members. The company has been steadily moving toward profitability and recently gained momentum after announcing new product integrations and AI-powered financial planning tools.

Key Catalysts:

• Student loan payments have resumed, boosting refinancing demand

• New banking charter gives it lower-cost funding

• Aggressive growth in its personal loan segment

• AI tools driving user engagement and retention

With more consumers ditching traditional banks for digital-first platforms, SoFi is well-positioned to ride the neobank wave.

Analyst Sentiment:

Many analysts believe SOFI is undervalued, with a consensus price target above $12—implying a 50%+ upside.

2. Plug Power (PLUG)

Price (as of April 2025): ~$3.50
Sector: Renewable Energy / Hydrogen

Why It Could Explode:

Plug Power is a leader in hydrogen fuel cell solutions. After a brutal 2023 due to cash burn and missed projections, the stock has bottomed out—but now, it’s showing signs of a turnaround.

The company recently secured major contracts in Europe and Asia, and its green hydrogen facilities are coming online faster than expected. Government incentives under the Inflation Reduction Act and global push toward clean energy are massive tailwinds.

Key Catalysts:

• Revenue growth expected to rebound in 2025

• Partnerships with Amazon and Walmart

• Expansion into Europe’s hydrogen market

• Strong political and environmental momentum

Analyst Sentiment:

Plug has a speculative edge, and if execution improves, the stock could easily triple from current levels. Analysts have given it a wide price target range—from $5 to $12.

3. Warner Bros. Discovery (WBD)

Price (as of April 2025): ~$10.80
Sector: Media & Entertainment

Why It Could Explode:

WBD has been crushed in recent years due to debt concerns and streaming competition. But in 2025, the company is refocusing its strategy, cutting costs, and monetizing its rich content library (HBO, CNN, Discovery, DC Comics).

With streaming becoming profitable and sports rights negotiations in the spotlight, Warner Bros. is back in the game. The buzz around the upcoming DC Universe revamp (led by James Gunn) is also helping investor sentiment.

Key Catalysts:

• DC Studios reboot with high-anticipation film slate

• HBO Max and Discovery+ merger creating a strong platform

• Cost-cutting and debt-reduction efforts taking effect

• Sports licensing deals and ad revenue growth

Analyst Sentiment:

Several Wall Street firms see WBD as a turnaround play with a target price north of $20. If earnings beat expectations, this stock could double.

4. iRobot Corporation (IRBT)

Price (as of April 2025): ~$19.60
Sector: Consumer Technology

Why It Could Explode:

iRobot, the maker of Roomba, has had a wild ride. Amazon tried to acquire the company in 2022, but the deal fell through due to antitrust scrutiny. Now trading under $20, iRobot is refocusing on innovation and exploring new strategic partnerships.

New product lines using AI for home automation are set to launch in 2025, which could reignite investor interest. The home robotics market is expected to grow significantly over the next five years.

Key Catalysts:

• Renewed focus on AI-enhanced cleaning devices

• Entry into smart home integration with major tech firms

• Supply chain issues resolved post-pandemic

• Takeover potential still on the table

Analyst Sentiment:

Though speculative, IRBT has strong brand recognition and a history of profitability. Some analysts suggest the stock could bounce back to $30+ with the right execution.

5. Matterport Inc. (MTTR)

Price (as of April 2025): ~$1.90
Sector: Tech / 3D Spatial Data

Why It Could Explode:

Matterport specializes in creating 3D “digital twins” of real-world spaces. It’s a key player in proptech (property technology) and has applications in real estate, architecture, insurance, and retail.

While its stock has been punished post-SPAC era, its core tech remains relevant. In 2025, Matterport is expanding its partnerships with construction and design platforms. Integration with AR/VR tools, including Apple Vision Pro and Meta’s devices, could create explosive demand.

Key Catalysts:

• Real estate and retail digitization trends

• Strategic partnerships with tech and proptech giants

• Integration into VR platforms and digital marketing

• Low float and high short interest—prime for a squeeze

Analyst Sentiment:

Though speculative and risky, MTTR has disruptive potential. Price targets vary widely, but some bulls see a path to $5+ in 2025.

Bonus Tip: How to Evaluate Cheap Stocks With Big Upside

When you’re looking at stocks under $50, don’t just chase price action. Evaluate the following:

• Revenue growth: Are sales trending upward?

• Profitability trends: Is the company moving toward (or maintaining) positive earnings?

• Debt levels: Can the company survive economic turbulence?

• Leadership: Is management experienced and forward-thinking?

• Industry trends: Is the stock aligned with a growing sector?

Doing this due diligence can help you separate the long-term winners from short-term fads.

Also Read: 10 Stock Market Hacks Millionaires Swear By (Steal These Tips!)

Final Thoughts

The market in 2025 is offering a rare opportunity: strong companies with high upside trading at bargain prices. Whether you’re a new investor or looking to add some high-reward names to your portfolio, these top 5 stocks under $50 could be game-changers.

That said, always remember: low-priced stocks can be volatile. Consider your risk tolerance, diversify your picks, and don’t invest more than you can afford to lose.

If you’re bullish on innovation, fintech, green energy, media, or AI-powered tech—now’s the time to act.