ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Stocks Under $50 We Steer Clear Of

DBX 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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Dropbox (DBX)

Share Price: $25.98

Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ: DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.

Why Do We Pass on DBX?

  1. Offerings couldn’t generate interest over the last year as its billings have averaged 1.1% declines
  2. Estimated sales for the next 12 months are flat and imply a softer demand environment
  3. Operating margin improved by 8.3 percentage points over the last year as it eliminated redundant costs

At $25.98 per share, Dropbox trades at 2.7x forward price-to-sales. Check out our free in-depth research report to learn more about why DBX doesn’t pass our bar.

Hub Group (HUBG)

Share Price: $43.05

Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.

Why Do We Think HUBG Will Underperform?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9% annually over the last two years
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 28% annually, worse than its revenue
  3. Waning returns on capital imply its previous profit engines are losing steam

Hub Group is trading at $43.05 per share, or 22.2x forward P/E. Dive into our free research report to see why there are better opportunities than HUBG.

International Paper (IP)

Share Price: $42.38

Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

Why Should You Sell IP?

  1. The company has faced growth challenges as its 3.9% annual revenue increases over the last five years fell short of other industrials companies
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.4 percentage points
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

International Paper’s stock price of $42.38 implies a valuation ratio of 25.1x forward P/E. If you’re considering IP for your portfolio, see our FREE research report to learn more.

Stocks We Like More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  213.21
-5.73 (-2.62%)
AAPL  257.46
-2.83 (-1.09%)
AMD  192.43
-7.02 (-3.52%)
BAC  48.64
-0.89 (-1.80%)
GOOG  298.30
-2.61 (-0.87%)
META  644.86
-15.71 (-2.38%)
MSFT  408.96
-1.72 (-0.42%)
NVDA  177.82
-5.52 (-3.01%)
ORCL  152.96
-1.83 (-1.18%)
TSLA  396.73
-8.82 (-2.17%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.