3 Stocks Under $50 That Fall Short
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.
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.
Jack in the Box (JACK)
Share Price: $16.10
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ:JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Should You Sell JACK?
- Ongoing restaurant closures and lackluster same-store sales indicate sluggish demand and a focus on consolidation
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
Jack in the Box is trading at $16.10 per share, or 4.2x forward P/E. Check out our free in-depth research report to learn more about why JACK doesn’t pass our bar.
Leonardo DRS (DRS)
Share Price: $43.29
Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services.
Why Does DRS Worry Us?
- 5.1% annual revenue growth over the last five years was slower than its industrials peers
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 1.1% decline in its backlog
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $43.29 per share, Leonardo DRS trades at 33.8x forward P/E. If you’re considering DRS for your portfolio, see our FREE research report to learn more.
United Bankshares (UBSI)
Share Price: $48.21
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ:UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
Why Are We Wary of UBSI?
- Muted 8.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.5% annually
- Estimated tangible book value per share growth of 5.9% for the next 12 months implies profitability will slow from its two-year trend
United Bankshares’s stock price of $48.21 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including UBSI in your portfolio.
Stocks We Like More
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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.