ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Stocks Under $50 Walking a Fine Line

HRL 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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Hormel Foods (HRL)

Share Price: $22.66

Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Why Should You Dump HRL?

  1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Gross margin of 16.6% is below its competitors, leaving less money to invest in areas like marketing and production facilities
  3. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 7% annually, worse than its revenue

Hormel Foods’s stock price of $22.66 implies a valuation ratio of 16.7x forward P/E. Read our free research report to see why you should think twice about including HRL in your portfolio.

Terex (TEX)

Share Price: $45.75

With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.

Why Does TEX Give Us Pause?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Earnings per share fell by 19.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Free cash flow margin shrank by 3.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $45.75 per share, Terex trades at 8.6x forward P/E. Check out our free in-depth research report to learn more about why TEX doesn’t pass our bar.

OceanFirst Financial (OCFC)

Share Price: $17.94

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

Why Is OCFC Not Exciting?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5% annually over the last two years
  2. Muted 3.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

OceanFirst Financial is trading at $17.94 per share, or 0.6x forward P/B. If you’re considering OCFC for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  218.14
+1.00 (0.46%)
AAPL  270.25
+4.00 (1.50%)
AMD  200.91
-5.11 (-2.48%)
BAC  51.27
+0.27 (0.52%)
GOOG  295.86
+5.88 (2.03%)
META  589.73
+0.58 (0.10%)
MSFT  471.15
-7.28 (-1.52%)
NVDA  178.63
-2.01 (-1.11%)
ORCL  197.11
-13.58 (-6.45%)
TSLA  394.65
-0.58 (-0.15%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.