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3 Stocks Under $50 We’re Skeptical Of

CBRL 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.

Cracker Barrel (CBRL)

Share Price: $31.32

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Why Should You Sell CBRL?

  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. Incremental sales over the last six years were much less profitable as its earnings per share fell by 22.6% annually while its revenue grew
  3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Cracker Barrel is trading at $31.32 per share, or 17.5x forward EV-to-EBITDA. To fully understand why you should be careful with CBRL, check out our full research report (it’s free).

Applied Digital (APLD)

Share Price: $35.40

Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.

Why Are We Cautious About APLD?

  1. Flat earnings per share over the last three years underperformed the sector average
  2. Free cash flow margin shrank by 79.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $35.40 per share, Applied Digital trades at 77.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including APLD in your portfolio.

CVB Financial (CVBF)

Share Price: $20.12

With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.

Why Are We Out on CVBF?

  1. Annual sales declines of 2% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Annual net interest income growth of 2% over the last five years was below our standards for the banking sector
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

CVB Financial’s stock price of $20.12 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why CVBF doesn’t pass our bar.

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.

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