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.
BJ's (BJRI)
Share Price: $41
Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
Why Do We Avoid BJRI?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Gross margin of 14.3% is below its competitors, leaving less money for marketing and promotions
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
BJ’s stock price of $41 implies a valuation ratio of 23.4x forward P/E. Dive into our free research report to see why there are better opportunities than BJRI.
Movado (MOV)
Share Price: $16.65
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Do We Pass on MOV?
- Sales tumbled by 6% annually over the last two years, showing consumer trends are working against its favor
- Operating margin of 4.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Movado is trading at $16.65 per share, or 0.6x trailing 12-month price-to-sales. If you’re considering MOV for your portfolio, see our FREE research report to learn more.
Covenant Logistics (CVLG)
Share Price: $24.99
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ: CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Why Do We Steer Clear of CVLG?
- Sales tumbled by 3% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin shrank by 25 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $24.99 per share, Covenant Logistics trades at 7.1x forward EV-to-EBITDA. To fully understand why you should be careful with CVLG, check out our full research report (it’s free).
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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-micro-cap company Tecnoglass (+1,754% 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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