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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Teradata (TDC)
Share Price: $20.43
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE: TDC) offers a software-as-service platform that helps organizations manage and analyze their data across multiple storages.
Why Should You Sell TDC?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 6.2% declines
- Projected sales decline of 2.6% over the next 12 months indicates demand will continue deteriorating
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 59.3%, one of the worst among software companies
At $20.43 per share, Teradata trades at 1.2x forward price-to-sales. Read our free research report to see why you should think twice about including TDC in your portfolio.
Foot Locker (FL)
Share Price: $24.59
Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE: FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.
Why Are We Out on FL?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Operating margin of -0.5% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Foot Locker is trading at $24.59 per share, or 19.2x forward P/E. To fully understand why you should be careful with FL, check out our full research report (it’s free).
Corebridge Financial (CRBG)
Share Price: $33.34
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Why Does CRBG Fall Short?
- Net premiums earned tumbled by 2.9% annually over the last four years, showing market trends are working against its favor during this cycle
- Inability to adjust its cost structure while its revenue declined over the last two years led to a 15.6 percentage point drop in the company’s pre-tax profit margin
Corebridge Financial’s stock price of $33.34 implies a valuation ratio of 1.4x forward P/B. If you’re considering CRBG for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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
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