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.
Mayville Engineering (MEC)
Share Price: $14.59
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Why Is MEC Risky?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- High input costs result in an inferior gross margin of 12.5% that must be offset through higher volumes
- Issuance of new shares partly offset its revenue growth over the last five years as its earnings per share were flat
Mayville Engineering is trading at $14.59 per share, or 4.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than MEC.
Luxfer (LXFR)
Share Price: $11.55
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.
Why Do We Think LXFR Will Underperform?
- Annual revenue growth of 1.6% over the last one years was below our standards for the industrials sector
- Free cash flow margin dropped by 8.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Diminishing returns on capital suggest its earlier profit pools are drying up
Luxfer’s stock price of $11.55 implies a valuation ratio of 11x forward P/E. Check out our free in-depth research report to learn more about why LXFR doesn’t pass our bar.
S&T Bancorp (STBA)
Share Price: $36.46
Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.
Why Are We Hesitant About STBA?
- Muted 4.6% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
- Projected net interest income growth of 3.5% for the next 12 months suggests sluggish demand
- High interest payments compared to its earnings raise concerns about its ability to service its debt consistently
At $36.46 per share, S&T Bancorp trades at 1x forward P/B. If you’re considering STBA for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
