December 11th, 2017

3 Stocks Under $50 with Open Questions

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BOX Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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 pass on and some alternatives you should look into instead.

Box (BOX)

Share Price: $31.70

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Why Is BOX Risky?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 6.5% underwhelmed
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 8.3%
  3. Operating margin expanded by 2.5 percentage points over the last year as it scaled and became more efficient

Box’s stock price of $31.70 implies a valuation ratio of 3.4x forward price-to-sales. If you’re considering BOX for your portfolio, see our FREE research report to learn more.

Newmark (NMRK)

Share Price: $14.78

Founded in 1929, Newmark (NASDAQ: NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Why Should You Sell NMRK?

  1. 10.7% annual revenue growth over the last five years was slower than its consumer discretionary peers
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $14.78 per share, Newmark trades at 7.7x forward P/E. Check out our free in-depth research report to learn more about why NMRK doesn’t pass our bar.

H&R Block (HRB)

Share Price: $45.99

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

Why Are We Bearish on HRB?

  1. Annual sales declines of 2.1% for the past five years show its products and services struggled to connect with the market
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 8.8% annually
  3. Eroding returns on capital suggest its historical profit centers are aging

H&R Block is trading at $45.99 per share, or 7.7x forward P/E. Dive into our free research report to see why there are better opportunities than HRB.

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

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