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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
El Pollo Loco (LOCO)
Share Price: $11.44
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ: LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.
Why Do We Steer Clear of LOCO?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Smaller revenue base of $476 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Anticipated sales growth of 4% for the next year implies demand will be shaky
At $11.44 per share, El Pollo Loco trades at 5.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than LOCO.
Driven Brands (DRVN)
Share Price: $18.45
With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.
Why Does DRVN Give Us Pause?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Driven Brands is trading at $18.45 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including DRVN in your portfolio.
Organon (OGN)
Share Price: $10.02
Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.
Why Do We Avoid OGN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.8% annually over the last five years
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- 28.9 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
Organon’s stock price of $10.02 implies a valuation ratio of 2.6x forward P/E. To fully understand why you should be careful with OGN, check out our full research report (it’s free).
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 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
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