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3 Stocks Under $50 in Dangerous Territory

GME 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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

GameStop (GME)

Share Price: $22.71

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

Why Should You Dump GME?

  1. GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
  2. The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
  3. On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push

GameStop’s stock price of $22.71 implies a valuation ratio of 45.2x forward P/E. If you’re considering GME for your portfolio, see our FREE research report to learn more.

Reynolds (REYN)

Share Price: $21.63

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Why Do We Think REYN Will Underperform?

  1. Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
  2. Sales are projected to tank by 1.4% over the next 12 months as demand evaporates further
  3. 6.1 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

Reynolds is trading at $21.63 per share, or 13.2x forward P/E. Check out our free in-depth research report to learn more about why REYN doesn’t pass our bar.

Harley-Davidson (HOG)

Share Price: $24.45

Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Why Do We Pass on HOG?

  1. Demand for its offerings was relatively low as its number of motorcycles sold has underwhelmed
  2. Diminishing returns on capital suggest its earlier profit pools are drying up
  3. 13× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $24.45 per share, Harley-Davidson trades at 7.3x forward P/E. Read our free research report to see why you should think twice about including HOG in your portfolio.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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-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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