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3 Stocks Under $50 We Approach with Caution

SHC 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.

Sotera Health Company (SHC)

Share Price: $11.28

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Why Does SHC Fall Short?

  1. Sales trends were unexciting over the last two years as its 5.9% annual growth was below the typical healthcare company
  2. Subscale operations are evident in its revenue base of $1.11 billion, meaning it has fewer distribution channels than its larger rivals
  3. Low free cash flow margin of 1.4% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Sotera Health Company’s stock price of $11.28 implies a valuation ratio of 14.8x forward P/E. Check out our free in-depth research report to learn more about why SHC doesn’t pass our bar.

Integra LifeSciences (IART)

Share Price: $12.31

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Why Should You Dump IART?

  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. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 7.7 percentage points
  3. 21 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 $12.31 per share, Integra LifeSciences trades at 5.1x forward P/E. To fully understand why you should be careful with IART, check out our full research report (it’s free).

Bristol-Myers Squibb (BMY)

Share Price: $45.50

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Is BMY Not Exciting?

  1. Annual sales growth of 2.7% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
  2. Projected sales decline of 4.6% for the next 12 months points to a tough demand environment ahead
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Bristol-Myers Squibb is trading at $45.50 per share, or 7.1x forward P/E. Dive into our free research report to see why there are better opportunities than BMY.

High-Quality Stocks for All Market Conditions

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 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).

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