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.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Warner Music Group (WMG)
Share Price: $28.99
Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ: WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Why Do We Avoid WMG?
- Annual revenue growth of 8.7% over the last five years was below our standards for the consumer discretionary sector
- Free cash flow margin is projected to show no improvement next year
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Warner Music Group is trading at $28.99 per share, or 18.9x forward P/E. If you’re considering WMG for your portfolio, see our FREE research report to learn more.
Dave & Buster's (PLAY)
Share Price: $12.96
Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.
Why Should You Sell PLAY?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $12.96 per share, Dave & Buster's trades at 8.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including PLAY in your portfolio.
CNO Financial Group (CNO)
Share Price: $43.76
Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE: CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.
Why Are We Out on CNO?
- Stagnant net premiums earned over the last five years suggest the firm needs alternative growth strategies
- Costs have risen faster than its revenue over the last two years, causing its pre-tax profit margin to decline by 2.3 percentage points
- Annual book value per share declines of 7.2% for the past five years show its capital management struggled during this cycle
CNO Financial Group’s stock price of $43.76 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than CNO.
High-Quality Stocks for All Market Conditions
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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.
