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.
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.
Potbelly (PBPB)
Share Price: $10.90
With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ: PBPB) today is a chain known for its toasty sandwiches.
Why Is PBPB Not Exciting?
- Muted 1.8% annual revenue growth over the last six years shows its demand lagged behind its restaurant peers
- Revenue base of $465.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Poor expense management has led to an operating margin of 2.6% that is below the industry average
Potbelly is trading at $10.90 per share, or 11.1x forward EV-to-EBITDA. To fully understand why you should be careful with PBPB, check out our full research report (it’s free).
Lovesac (LOVE)
Share Price: $19.80
Known for its oversized, premium beanbags, Lovesac (NASDAQ: LOVE) is a specialty furniture brand selling modular furniture.
Why Does LOVE Give Us Pause?
- 2.2% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Projected 1.5 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Waning returns on capital imply its previous profit engines are losing steam
At $19.80 per share, Lovesac trades at 43.5x forward P/E. If you’re considering LOVE for your portfolio, see our FREE research report to learn more.
Bausch + Lomb (BLCO)
Share Price: $11.70
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Does BLCO Worry Us?
- Sales trends were unexciting over the last five years as its 5.3% annual growth was below the typical healthcare company
- 20.6 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
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Bausch + Lomb’s stock price of $11.70 implies a valuation ratio of 14.7x forward P/E. Read our free research report to see why you should think twice about including BLCO in your portfolio.
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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
