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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
MGM Resorts (MGM)
Share Price: $47.82
Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE: MGM) is a global hospitality and entertainment company known for its resorts and casinos.
Why Is MGM Risky?
- Annual sales growth of 3.1% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
MGM Resorts is trading at $47.82 per share, or 26x forward P/E. To fully understand why you should be careful with MGM, check out our full research report (it’s free).
Kyndryl (KD)
Share Price: $11.09
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Why Does KD Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last five years
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Push for growth has led to negative returns on capital, signaling value destruction
Kyndryl’s stock price of $11.09 implies a valuation ratio of 6x forward P/E. If you’re considering KD for your portfolio, see our FREE research report to learn more.
Hercules Capital (HTGC)
Share Price: $15.87
Named after the mythological hero known for his strength, Hercules Capital (NYSE: HTGC) is a business development company that provides debt financing to venture capital-backed and growth-stage technology and life sciences companies.
Why Are We Wary of HTGC?
- Earnings per share fell by 3.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital on unfavorable terms if market conditions deteriorate
At $15.87 per share, Hercules Capital trades at 8.1x forward P/E. Check out our free in-depth research report to learn more about why HTGC doesn’t pass our bar.
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.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
