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3 Stocks Under $50 with Open Questions

MLKN Cover Image

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.

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.

MillerKnoll (MLKN)

Share Price: $16.91

Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ: MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.

Why Is MLKN Risky?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.8% annually over the last two years
  2. Earnings per share fell by 11.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. 4.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

MillerKnoll’s stock price of $16.91 implies a valuation ratio of 6.9x forward P/E. To fully understand why you should be careful with MLKN, check out our full research report (it’s free).

Kyndryl (KD)

Share Price: $40.21

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Why Does KD Worry Us?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last four years
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Negative returns on capital show that some of its growth strategies have backfired

Kyndryl is trading at $40.21 per share, or 19.4x forward P/E. Check out our free in-depth research report to learn more about why KD doesn’t pass our bar.

Rocket Companies (RKT)

Share Price: $13.75

Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.

Why Does RKT Fall Short?

  1. Annual sales declines of 4% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share have contracted by 53.4% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
  3. High net-debt-to-EBITDA ratio of 12× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $13.75 per share, Rocket Companies trades at 3x forward P/B. Dive into our free research report to see why there are better opportunities than RKT.

High-Quality Stocks for All Market Conditions

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 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 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-small-cap company Exlservice (+354% 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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