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3 Stocks Under $50 We Steer Clear Of

ABM Cover Image

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.

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.

ABM (ABM)

Share Price: $45.06

With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.

Why Are We Cautious About ABM?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Annual earnings per share growth of 1.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
  3. Free cash flow margin dropped by 6.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

ABM is trading at $45.06 per share, or 11.2x forward P/E. To fully understand why you should be careful with ABM, check out our full research report (it’s free).

First Advantage (FA)

Share Price: $14.88

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

Why Are We Hesitant About FA?

  1. Earnings per share have contracted by 9.3% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
  2. 16.5 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
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

First Advantage’s stock price of $14.88 implies a valuation ratio of 14.4x forward P/E. Dive into our free research report to see why there are better opportunities than FA.

Artisan Partners (APAM)

Share Price: $43.80

Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.

Why Do We Think Twice About APAM?

  1. Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical financials company
  2. Incremental sales over the last five years were less profitable as its 5.2% annual earnings per share growth lagged its revenue gains

At $43.80 per share, Artisan Partners trades at 2.3x forward price-to-sales. Check out our free in-depth research report to learn more about why APAM doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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 Growth Stocks for this month. 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 Kadant (+351% 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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