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.
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.
Macy's (M)
Share Price: $11.20
With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Do We Think M Will Underperform?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Projected sales decline of 5.4% over the next 12 months indicates demand will continue deteriorating
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Macy’s stock price of $11.20 implies a valuation ratio of 5x forward price-to-earnings. Read our free research report to see why you should think twice about including M in your portfolio.
G-III (GIII)
Share Price: $25.22
Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Should You Dump GIII?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Forecasted revenue decline of 2.4% for the upcoming 12 months implies demand will fall off a cliff
- ROIC of 7.8% reflects management’s challenges in identifying attractive investment opportunities
G-III is trading at $25.22 per share, or 6.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why GIII doesn’t pass our bar.
Mueller Water Products (MWA)
Share Price: $26.24
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE: MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Are We Wary of MWA?
- Annual revenue growth of 2.8% over the last two years was below our standards for the industrials sector
- 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
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.8%
At $26.24 per share, Mueller Water Products trades at 22.2x forward price-to-earnings. To fully understand why you should be careful with MWA, check out our full research report (it’s free).
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
