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3 Stocks Under $50 with Questionable Fundamentals

SMPL 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.

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.

Simply Good Foods (SMPL)

Share Price: $19.61

Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ: SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.

Why Do We Think SMPL Will Underperform?

  1. Smaller revenue base of $1.45 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
  3. Free cash flow margin dropped by 4.9 percentage points over the last year, implying the company became more capital intensive as competition picked up

Simply Good Foods’s stock price of $19.61 implies a valuation ratio of 10.2x forward P/E. Read our free research report to see why you should think twice about including SMPL in your portfolio.

TreeHouse Foods (THS)

Share Price: $23.51

Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.

Why Should You Sell THS?

  1. Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.4 percentage points
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

At $23.51 per share, TreeHouse Foods trades at 12.7x forward P/E. Dive into our free research report to see why there are better opportunities than THS.

Cadence Bank (CADE)

Share Price: $43.67

With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation (NYSE: CADE) is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.

Why Are We Hesitant About CADE?

  1. 4.3% annual revenue growth over the last two years was slower than its banking peers
  2. Performance over the past five years shows its incremental sales were less profitable, as its 5.5% annual earnings per share growth trailed its revenue gains
  3. Estimated tangible book value per share growth of 10.6% for the next 12 months implies profitability will slow from its two-year trend

Cadence Bank is trading at $43.67 per share, or 1.4x forward P/B. If you’re considering CADE for your portfolio, see our FREE research report to learn more.

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 5 Growth Stocks for this month. 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.

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