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3 Stocks Under $50 We Approach with Caution

HTLD 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.

Heartland Express (HTLD)

Share Price: $11.44

Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.

Why Should You Dump HTLD?

  1. Annual sales declines of 18.3% for the past two years show its products and services struggled to connect with the market during this cycle
  2. 12 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. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Heartland Express is trading at $11.44 per share, or 7.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than HTLD.

Old Republic International (ORI)

Share Price: $41.66

Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE: ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.

Why Are We Wary of ORI?

  1. Sluggish 4.4% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
  2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.4% annually
  3. 1.5% annual book value per share growth over the last two years was slower than its insurance peers

At $41.66 per share, Old Republic International trades at 1.7x forward P/B. If you’re considering ORI for your portfolio, see our FREE research report to learn more.

PennyMac Mortgage Investment Trust (PMT)

Share Price: $12.31

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

Why Is PMT Risky?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 23.1% annually over the last five years
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 22% annually, worse than its revenue
  3. Tangible book value per share tumbled by 5.4% annually over the last five years, showing banking sector trends are working against its favor during this cycle

PennyMac Mortgage Investment Trust’s stock price of $12.31 implies a valuation ratio of 0.8x forward P/B. Check out our free in-depth research report to learn more about why PMT 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 9 Market-Beating Stocks. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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