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 avoid and some other investments you should consider instead.
Jack in the Box (JACK)
Share Price: $15.40
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Should You Sell JACK?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Earnings per share have dipped by 20% annually over the past six years, which is concerning because stock prices follow EPS over the long term
- High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Jack in the Box’s stock price of $15.40 implies a valuation ratio of 3.5x forward P/E. To fully understand why you should be careful with JACK, check out our full research report (it’s free for active Edge members).
Molson Coors (TAP)
Share Price: $43.55
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Do We Think TAP Will Underperform?
- Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- Underwhelming 3.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
Molson Coors is trading at $43.55 per share, or 7.9x forward P/E. Check out our free in-depth research report to learn more about why TAP doesn’t pass our bar.
Accel Entertainment (ACEL)
Share Price: $9.97
Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Why Are We Wary of ACEL?
- Number of video gaming terminals sold has disappointed over the past two years, indicating weak demand for its offerings
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.4%
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $9.97 per share, Accel Entertainment trades at 10.1x forward P/E. Dive into our free research report to see why there are better opportunities than ACEL.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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