Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Zumiez (ZUMZ)
Share Price: $14.99
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Is ZUMZ Risky?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Modest revenue base of $889.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Suboptimal cost structure is highlighted by its history of operating losses
At $14.99 per share, Zumiez trades at 36.7x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than ZUMZ.
Jack in the Box (JACK)
Share Price: $32.25
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Is JACK Not Exciting?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 10.6 percentage points
- 10× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Jack in the Box’s stock price of $32.25 implies a valuation ratio of 5.9x forward price-to-earnings. Read our free research report to see why you should think twice about including JACK in your portfolio.
Polaris (PII)
Share Price: $42.90
Founded in 1954, Polaris (NYSE: PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Why Do We Avoid PII?
- Annual revenue declines of 8.2% over the last two years indicate problems with its market positioning
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 12.4% annually while its revenue grew
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Polaris is trading at $42.90 per share, or 14.2x forward price-to-earnings. Check out our free in-depth research report to learn more about why PII doesn’t pass our bar.
Stocks We Like More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
