Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
These dynamics 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 are three stocks under $50 to swipe left on and some alternatives you should look into instead.
FARO (FARO)
Share Price: $42.55
Launched by two PhD students in a garage, FARO (NASDAQ: FARO) provides 3D measurement and imaging systems for the manufacturing, construction, engineering, and public safety industries.
Why Do We Think Twice About FARO?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last five years
- Historical operating margin losses point to an inefficient cost structure
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $42.55 per share, FARO trades at 38.3x forward P/E. Check out our free in-depth research report to learn more about why FARO doesn’t pass our bar.
Atlantic Union Bankshares (AUB)
Share Price: $31.52
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Is AUB Not Exciting?
- Muted 7.3% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
- 3.2% annual tangible book value per share growth over the last two years was slower than its bank peers
Atlantic Union Bankshares is trading at $31.52 per share, or 0.9x forward P/B. Read our free research report to see why you should think twice about including AUB in your portfolio.
Ellington Financial (EFC)
Share Price: $13.07
Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE: EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.
Why Do We Steer Clear of EFC?
- Estimated net interest income growth of 6% for the next 12 months is soft and implies weaker demand
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3% annually
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 2.2% annually over the last five years
Ellington Financial’s stock price of $13.07 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why EFC doesn’t pass our bar.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
