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3 Stocks Under $50 That Fall Short

MCFT 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. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

MasterCraft (MCFT)

Share Price: $21.03

Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.

Why Is MCFT Risky?

  1. Demand for its offerings was relatively low as its number of boats sold has underwhelmed
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

MasterCraft is trading at $21.03 per share, or 16.4x forward P/E. Dive into our free research report to see why there are better opportunities than MCFT.

Tandem Diabetes (TNDM)

Share Price: $19.75

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Do We Steer Clear of TNDM?

  1. Disappointing pump shipments over the past two years suggest it might have to lower prices to accelerate growth
  2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
  3. Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes

At $19.75 per share, Tandem Diabetes trades at 28x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TNDM doesn’t pass our bar.

Eastern Bank (EBC)

Share Price: $20.11

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Why Are We Wary of EBC?

  1. Inferior net interest margin of 3.2% means it must compensate for lower profitability through increased loan originations
  2. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 4.5% annually over the last five years
  3. Projected tangible book value per share for the next 12 months is flat and suggests profitability will be subdued

Eastern Bank’s stock price of $20.11 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with EBC, check out our full research report (it’s free).

Stocks We Like More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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