3 Stocks Under $50 in Hot Water

July 10, 2025 at 00:32 AM EDT

PD 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.

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 avoid and some other investments you should consider instead.

PagerDuty (PD)

Share Price: $15.96

Started by three former Amazon engineers, PagerDuty (NYSE: PD) is a software-as-a-service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.

Why Are We Hesitant About PD?

Customers had second thoughts about committing to its platform over the last year as its average billings growth of 7% underwhelmed
Estimated sales growth of 6.2% for the next 12 months implies demand will slow from its three-year trend
Persistent operating margin losses suggest the business manages its expenses poorly

PagerDuty is trading at $15.96 per share, or 2.9x forward price-to-sales. Read our free research report to see why you should think twice about including PD in your portfolio.

G-III (GIII)

Share Price: $23.56

Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.

Why Do We Think GIII Will Underperform?

Sales stagnated over the last two years and signal the need for new growth strategies
Sales are projected to tank by 1.3% over the next 12 months as demand evaporates further
ROIC of 8.3% reflects management’s challenges in identifying attractive investment opportunities

At $23.56 per share, G-III trades at 6.1x forward P/E. Check out our free in-depth research report to learn more about why GIII doesn’t pass our bar.

Tri Pointe Homes (TPH)

Share Price: $34.43

Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Why Should You Dump TPH?

Backlog has dropped by 6.9% on average over the past two years, suggesting it’s losing orders as competition picks up
Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Free cash flow margin shrank by 8.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Tri Pointe Homes’s stock price of $34.43 implies a valuation ratio of 11x forward P/E. Dive into our free research report to see why there are better opportunities than TPH.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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3 Stocks Under $50 in Hot Water

PagerDuty (PD)

G-III (GIII)

Tri Pointe Homes (TPH)

Stocks We Like More

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