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3 Stocks Under $50 We Approach with Caution

PZZA Cover Image

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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.

Papa John's (PZZA)

Share Price: $41.44

Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ: PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.

Why Should You Sell PZZA?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Gross margin of 12.1% reflects the bad unit economics inherent in most restaurant businesses
  3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.6 percentage points

Papa John's is trading at $41.44 per share, or 24.4x forward P/E. If you’re considering PZZA for your portfolio, see our FREE research report to learn more.

Option Care Health (OPCH)

Share Price: $32.94

With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.

Why Are We Hesitant About OPCH?

Option Care Health’s stock price of $32.94 implies a valuation ratio of 18.1x forward P/E. To fully understand why you should be careful with OPCH, check out our full research report (it’s free for active Edge members).

CVB Financial (CVBF)

Share Price: $19.94

With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.

Why Do We Avoid CVBF?

  1. 1.4% annual net interest income growth over the last five years was slower than its banking peers
  2. Earnings per share lagged its peers over the last five years as they only grew by 2.4% annually
  3. 3% annual tangible book value per share growth over the last five years was slower than its banking peers

At $19.94 per share, CVB Financial trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than CVBF.

Stocks We Like More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-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

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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