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3 Stocks Under $50 That Fall Short

CCL 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.

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.

Carnival (CCL)

Share Price: $30.69

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Should You Dump CCL?

  1. Number of passenger cruise days has disappointed over the past two years, indicating weak demand for its offerings
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 7.6% for the last two years
  3. Push for growth has led to negative returns on capital, signaling value destruction

At $30.69 per share, Carnival trades at 12.5x forward P/E. If you’re considering CCL for your portfolio, see our FREE research report to learn more.

Kennametal (KMT)

Share Price: $29.28

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE: KMT) is a provider of industrial materials and tools for various sectors.

Why Do We Avoid KMT?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 4.7% annually, worse than its revenue
  3. Underwhelming 7.7% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up

Kennametal’s stock price of $29.28 implies a valuation ratio of 19.5x forward P/E. Check out our free in-depth research report to learn more about why KMT doesn’t pass our bar.

Origin Bancorp (OBK)

Share Price: $38.38

Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.

Why Does OBK Worry Us?

  1. Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical banking company
  2. Performance over the past two years shows its incremental sales were less profitable, as its 2.9% annual earnings per share growth trailed its revenue gains
  3. Estimated tangible book value per share growth of 8.9% for the next 12 months implies profitability will slow from its two-year trend

Origin Bancorp is trading at $38.38 per share, or 1x forward P/B. To fully understand why you should be careful with OBK, check out our full research report (it’s free for active Edge members).

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 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 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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