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3 Stocks Under $50 with Mounting Challenges

UTZ 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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Utz (UTZ)

Share Price: $13.22

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE: UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

Why Is UTZ Risky?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Revenue base of $1.41 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Utz is trading at $13.22 per share, or 15.1x forward P/E. Read our free research report to see why you should think twice about including UTZ in your portfolio.

LSI (LYTS)

Share Price: $17.61

Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.

Why Are We Hesitant About LYTS?

  1. Sales trends were unexciting over the last two years as its 4.5% annual growth was below the typical industrials company
  2. Performance over the past two years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue
  3. 5.9 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

At $17.61 per share, LSI trades at 14.7x forward P/E. Check out our free in-depth research report to learn more about why LYTS doesn’t pass our bar.

NV5 Global (NVEE)

Share Price: $23.22

Operating from over 100 locations across the U.S. and internationally, NV5 Global (NASDAQ: NVEE) provides engineering, environmental, geospatial, and technical consulting services to public and private sector clients for infrastructure and building projects.

Why Are We Cautious About NVEE?

  1. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 5.1 percentage points
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
  3. Free cash flow margin dropped by 13.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

NV5 Global’s stock price of $23.22 implies a valuation ratio of 17.5x forward P/E. Dive into our free research report to see why there are better opportunities than NVEE.

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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