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3 Stocks Under $50 with Questionable Fundamentals

RXO Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

RXO (RXO)

Share Price: $16.06

With access to millions of trucks, RXO (NYSE: RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.

Why Is RXO Risky?

  1. Flat unit sales over the past two years imply it may need to invest in improvements to get back on track
  2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
  3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $16.06 per share, RXO trades at 31.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why RXO doesn’t pass our bar.

PAR Technology (PAR)

Share Price: $22.96

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE: PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

Why Are We Cautious About PAR?

  1. Cash-burning history makes us doubt the long-term viability of its business model
  2. Negative returns on capital show that some of its growth strategies have backfired
  3. 14× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

PAR Technology’s stock price of $22.96 implies a valuation ratio of 55.4x forward P/E. Read our free research report to see why you should think twice about including PAR in your portfolio.

Enact Holdings (ACT)

Share Price: $42.39

Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ: ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.

Why Does ACT Worry Us?

  1. Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
  2. Expenses have increased as a percentage of revenue over the last two years as its combined ratio degraded by 7.3 percentage points
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.9% annually

Enact Holdings is trading at $42.39 per share, or 1.1x forward P/B. If you’re considering ACT for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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