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3 Stocks Under $50 We Find Risky
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Mayville Engineering (MEC)
Share Price: $14.21
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE:MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Why Are We Bearish on MEC?
- Annual sales declines of 3.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 12.2% reflects its high production costs
- Issuance of new shares over the last five years caused its earnings per share to fall by 17% annually while its revenue grew
Mayville Engineering is trading at $14.21 per share, or 21.7x forward P/E. If you’re considering MEC for your portfolio, see our FREE research report to learn more.
RXO (RXO)
Share Price: $29.07
With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
Why Do We Steer Clear of RXO?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Free cash flow margin dropped by 5.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
RXO’s stock price of $29.07 implies a valuation ratio of 77.6x forward P/E. Read our free research report to see why you should think twice about including RXO in your portfolio.
Halliburton (HAL)
Share Price: $32.73
Behind nearly every oil and gas well drilled worldwide, Halliburton (NYSE:HAL) provides drilling, completion, and production services that help oil and gas companies extract hydrocarbons from underground reservoirs.
Why Does HAL Fall Short?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 16.8%
At $32.73 per share, Halliburton trades at 12.9x forward P/E. Check out our free in-depth research report to learn more about why HAL 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.