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3 Stocks Under $50 We Think Twice About

CSV Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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.

Carriage Services (CSV)

Share Price: $44.92

Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.

Why Does CSV Fall Short?

  1. Sales trends were unexciting over the last two years as its 5.3% annual growth was below the typical consumer discretionary company
  2. Estimated sales growth of 1.2% for the next 12 months implies demand will slow from its two-year trend
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

Carriage Services’s stock price of $44.92 implies a valuation ratio of 7x forward EV-to-EBITDA. If you’re considering CSV for your portfolio, see our FREE research report to learn more.

Knight-Swift Transportation (KNX)

Share Price: $42.50

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE: KNX) offers less-than-truckload and full truckload delivery services.

Why Do We Think KNX Will Underperform?

  1. Sales trends were unexciting over the last two years as its 4.3% annual growth was below the typical industrials company
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.1 percentage points
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Knight-Swift Transportation is trading at $42.50 per share, or 23.2x forward P/E. Read our free research report to see why you should think twice about including KNX in your portfolio.

Sunrun (RUN)

Share Price: $10.15

Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.

Why Is RUN Not Exciting?

  1. Annual sales declines of 7.1% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $10.15 per share, Sunrun trades at 14.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why RUN doesn’t pass our bar.

Stocks We Like More

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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