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3 Stocks Under $50 with Open Questions

FWRG 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.

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.

First Watch (FWRG)

Share Price: $15.54

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Do We Think Twice About FWRG?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

First Watch’s stock price of $15.54 implies a valuation ratio of 47.6x forward P/E. Dive into our free research report to see why there are better opportunities than FWRG.

Amentum (AMTM)

Share Price: $30.70

With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.

Why Is AMTM Not Exciting?

  1. Sizable revenue base leads to growth challenges as its 2.4% annual revenue increases over the last three years fell short of other business services companies
  2. Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall off a cliff
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Amentum is trading at $30.70 per share, or 12.1x forward P/E. Check out our free in-depth research report to learn more about why AMTM doesn’t pass our bar.

Franklin BSP Realty Trust (FBRT)

Share Price: $10.15

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Do We Think FBRT Will Underperform?

  1. Net interest income trends were unexciting over the last five years as its 9.4% annual growth was below the typical banking firm
  2. Earnings per share fell by 39.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 6.8% annually over the last five years

At $10.15 per share, Franklin BSP Realty Trust trades at 0.7x forward P/B. Read our free research report to see why you should think twice about including FBRT in your portfolio.

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 Growth Stocks for this month. 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-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.

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