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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Varonis Systems (VRNS)
Share Price: $35.19
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Why Are We Cautious About VRNS?
- 11.7% annual revenue growth over the last two years was slower than its software peers
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 2.7 percentage points
- Free cash flow margin is forecasted to shrink by 1.9 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
Varonis Systems’s stock price of $35.19 implies a valuation ratio of 5.9x forward price-to-sales. Read our free research report to see why you should think twice about including VRNS in your portfolio.
Columbus McKinnon (CMCO)
Share Price: $15.53
With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Why Do We Think CMCO Will Underperform?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 11.3% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.8 percentage points
Columbus McKinnon is trading at $15.53 per share, or 5.6x forward P/E. Dive into our free research report to see why there are better opportunities than CMCO.
Oaktree Specialty Lending (OCSL)
Share Price: $13.67
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ: OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Do We Steer Clear of OCSL?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.9% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Annual tangible book value per share declines of 1.7% for the past five years show its capital management struggled during this cycle
At $13.67 per share, Oaktree Specialty Lending trades at 3.9x forward price-to-sales. If you’re considering OCSL for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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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