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3 Stocks Under $50 We Think Twice About

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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. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Carter's (CRI)

Share Price: $25.29

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE:CRI) is an American designer and marketer of children's apparel.

Why Do We Steer Clear of CRI?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Projected sales for the next 12 months are flat and suggest demand will be subdued
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $25.29 per share, Carter's trades at 9.7x forward P/E. Check out our free in-depth research report to learn more about why CRI doesn’t pass our bar.

Schneider (SNDR)

Share Price: $24.76

Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.

Why Do We Pass on SNDR?

  1. Annual sales declines of 4.6% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Schneider is trading at $24.76 per share, or 22.7x forward P/E. To fully understand why you should be careful with SNDR, check out our full research report (it’s free).

TowneBank (TOWN)

Share Price: $35.23

Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ:TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.

Why Are We Wary of TOWN?

  1. 4.2% annual net interest income growth over the last four years was slower than its bank peers
  2. Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
  3. Operational productivity has decreased over the last four years as its efficiency ratio worsened by 13.6 percentage points

TowneBank’s stock price of $35.23 implies a valuation ratio of 1.2x forward P/B. If you’re considering TOWN for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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