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3 Stocks Under $50 with Warning Signs

LCID Cover Image

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.

Lucid (LCID)

Share Price: $13.52

Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.

Why Are We Cautious About LCID?

  1. Negative 148% gross margin means it loses money on every sale and must pivot or scale quickly to survive
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Lucid’s stock price of $13.52 implies a valuation ratio of 2x forward price-to-sales. Read our free research report to see why you should think twice about including LCID in your portfolio.

Knowles (KN)

Share Price: $22.41

With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.

Why Do We Avoid KN?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last five years
  2. Smaller revenue base of $573.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.3% annually

Knowles is trading at $22.41 per share, or 18.7x forward P/E. Check out our free in-depth research report to learn more about why KN doesn’t pass our bar.

Valley National Bank (VLY)

Share Price: $11.33

Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.

Why Is VLY Risky?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Annual net interest income growth of 10% over the last five years was below our standards for the banking sector
  3. Earnings per share fell by 2.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

At $11.33 per share, Valley National Bank trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than VLY.

Stocks We Like More

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 Strong Momentum Stocks for this week. 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 Kadant (+351% 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.

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