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3 Stocks Under $50 in the Doghouse

CRMT Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

America's Car-Mart (CRMT)

Share Price: $49.61

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.

Why Do We Steer Clear of CRMT?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Gross margin of 20.2% is an output of its commoditized inventory
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $49.61 per share, America's Car-Mart trades at 15.7x forward P/E. Dive into our free research report to see why there are better opportunities than CRMT.

Steven Madden (SHOO)

Share Price: $23.70

As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.

Why Are We Hesitant About SHOO?

  1. Muted 5.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.1% annually
  3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.6 percentage points over the next year

Steven Madden’s stock price of $23.70 implies a valuation ratio of 12.5x forward P/E. If you’re considering SHOO for your portfolio, see our FREE research report to learn more.

Carriage Services (CSV)

Share Price: $40.97

Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.

Why Does CSV Worry Us?

  1. Lackluster 5.3% annual revenue growth over the last two years indicates the company is losing ground to competitors
  2. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Carriage Services is trading at $40.97 per share, or 6.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CSV in your portfolio.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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