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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Bausch + Lomb (BLCO)
Share Price: $14.90
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Are We Hesitant About BLCO?
- Annual revenue growth of 7.2% over the last five years was below our standards for the healthcare sector
- Free cash flow margin shrank by 23.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Bausch + Lomb’s stock price of $14.90 implies a valuation ratio of 18.6x forward P/E. If you’re considering BLCO for your portfolio, see our FREE research report to learn more.
ScanSource (SCSC)
Share Price: $41.66
Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ: SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers.
Why Are We Out on SCSC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 11.4% annually over the last two years
- Earnings per share have contracted by 3.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- ROIC of 8.1% reflects management’s challenges in identifying attractive investment opportunities
ScanSource is trading at $41.66 per share, or 10.2x forward P/E. Check out our free in-depth research report to learn more about why SCSC doesn’t pass our bar.
DigitalBridge (DBRG)
Share Price: $12.31
Transforming from a traditional real estate investor to a digital-focused powerhouse in 2021, DigitalBridge Group (NYSE: DBRG) is a global digital infrastructure investment firm that manages capital and operates assets across data centers, cell towers, fiber networks, and edge infrastructure.
Why Does DBRG Give Us Pause?
- Sales tumbled by 21.7% annually over the last five years, showing market trends are working against its favor during this cycle
- Below-average return on equity indicates management struggled to find compelling investment opportunities
At $12.31 per share, DigitalBridge trades at 1.5x forward P/E. To fully understand why you should be careful with DBRG, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum 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-micro-cap company Kadant (+351% 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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