You don’t have to spend a lot of money to buy a share of a successful company. Some stocks cost less than $50 per share and offer significant upside potential for long-term investors. But these stocks offer upside potential not just because of their low price. Increasing sales and profits are two components of high-potential companies.

These stocks meet both criteria, but also have growth catalysts that suggest further gains. Some of these stocks are also cheaply valued and offer a respectable margin of safety for long-term investors. None of these stocks currently have a market cap above $10 billion, and they don’t get as much attention as the giants, such as the Magnificent Seven.

Wondering which of the stocks under $50 can take your portfolio to new highs? These are some of the stocks that offer a lot of upside potential for long-term investors.

Semrush (SEMR)

Source: 4 Girls 1 Boy / Shutterstock.com

Semrush (NYSE:SEMR) is a search engine marketing tool that helps businesses and individuals find good keywords, plan advertising campaigns, and develop marketing strategies. Semrush’s features and functionality are hard to beat.

The top marketing tool is also well positioned for long-term investors. The company’s annual recurring revenue model delivered 21% year-over-year revenue growth in the first quarter. While revenue reached $85.8 million in the quarter, net income was $2.1 million. Profit more than doubled year-over-year, resulting in a net profit margin of 2.5%.

The company has nearly 112,000 paying customers and has succeeded in attracting new customers and getting existing customers to upgrade their accounts.

Semrush has a good chance of increasing its profit margins in the coming quarters. Investors are becoming increasingly optimistic about the stock given the 31% annual gain. The average price target of five analysts implies a potential upside of 19%. Semrush is currently rated as a moderate buy.

Upwork (UPWK)

Source: Sundry Photography / Shutterstock.com

Upwork (NYSE:UPWK) is an online freelance marketplace that is expected to continue to grow as the remote work trend becomes more mainstream. Upwork makes it easier for companies to find top talent and enables individuals to develop multiple income streams.

The stock hasn’t performed well year to date, posting a 25% loss during that time. However, recent declines have resulted in a P/E ratio of 31.5 for a company that regularly reports revenue and net income growth. Upwork posted a 19% year-over-year increase in revenue in the first quarter, reaching $190.9 million. At the same time, net income increased 7% year-over-year, reaching $18.4 million. Upwork ended the quarter with a net income margin of 9.7%.

The freelance marketplace offers two exciting revenue opportunities that can translate into further share price gains. Advertising revenue increased 93% year-on-year, while Freelancer Plus revenue increased 76%. Upwork now has more than 100,000 active subscriptions to its Freelancer Plus offering.

SoFi (SOFI)

Source: shutterstock.com/rafapress

SoFi (NASDAQ:SOFI) is a digital bank that offers checking accounts, brokerage accounts, personal loans, credit cards, and other financial products. The stock hasn’t performed well so far, reflecting a 31% loss year-to-date, but that puts it among stocks under $50.

The fintech company delivered another strong earnings report in the second quarter, showing revenue growth of 20% over the same period last year. Net income came in at $17.4 million, compared to a net loss of $47.5 million in the same quarter last year. The bank also ended the quarter with 8.77 million members, compared to 6.24 million members in the same quarter last year.

Digital banks have been gaining momentum. They have fewer overheads, allowing them to offer more competitive financial products. The industry is expected to maintain a compound annual growth rate of 11.7% from now until 2033. SoFi seems poised to gain major market share and reward long-term investors during that time. Analysts believe the stock can rise 23% from current levels.

As of the date of publication, Marc Guberti held a long position in SOFI. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the responsible editor had neither directly nor
indirectly) positions in the securities mentioned in this article.