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3 Stocks Under $50 We Think Twice About

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Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.

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.

Unity (U)

Share Price: $48.49

Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.

Why Do We Think U Will Underperform?

  1. Offerings couldn’t generate interest over the last year as its billings have averaged 2.5% declines
  2. Projected sales growth of 11.7% for the next 12 months suggests sluggish demand
  3. Persistent operating margin losses suggest the business manages its expenses poorly

Unity’s stock price of $48.49 implies a valuation ratio of 10.4x forward price-to-sales. Check out our free in-depth research report to learn more about why U doesn’t pass our bar.

Yum China (YUMC)

Share Price: $47.22

One of China’s largest restaurant companies, Yum China (NYSE: YUMC) is an independent entity spun off from Yum! Brands in 2016.

Why Are We Cautious About YUMC?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
  2. Estimated sales growth of 5.6% for the next 12 months is soft and implies weaker demand
  3. Gross margin of 20.1% is below its competitors, leaving less money for marketing and promotions

Yum China is trading at $47.22 per share, or 16.4x forward P/E. If you’re considering YUMC for your portfolio, see our FREE research report to learn more.

Enphase (ENPH)

Share Price: $32.68

The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.

Why Are We Out on ENPH?

  1. Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. Earnings per share have dipped by 22.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
  3. Free cash flow margin dropped by 9.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $32.68 per share, Enphase trades at 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than ENPH.

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 6 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 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.

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