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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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

WeightWatchers (WW)

Share Price: $25.66

Known by many for its old cable television commercials, WeightWatchers (NASDAQ: WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.

Why Do We Steer Clear of WW?

  1. Number of members has disappointed over the past two years, indicating weak demand for its offerings
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $25.66 per share, WeightWatchers trades at 16.8x forward P/E. Read our free research report to see why you should think twice about including WW in your portfolio.

IMAX (IMAX)

Share Price: $37.47

Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.

Why Are We Wary of IMAX?

  1. Annual sales declines of 1.2% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Revenue base of $377.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. ROIC of 1.8% reflects management’s challenges in identifying attractive investment opportunities

IMAX’s stock price of $37.47 implies a valuation ratio of 24.6x forward P/E. If you’re considering IMAX for your portfolio, see our FREE research report to learn more.

Regions Financial (RF)

Share Price: $27.50

Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Why Is RF Not Exciting?

  1. Net interest income trends were unexciting over the last five years as its 5.4% annual growth was below the typical banking firm
  2. Net interest margin shrank by 41 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
  3. Flat earnings per share over the last two years lagged its peers

Regions Financial is trading at $27.50 per share, or 1.3x forward P/B. To fully understand why you should be careful with RF, check out our full research report (it’s free for active Edge members).

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 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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