3 Stocks Under $50 That Fall Short
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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Norwegian Cruise Line (NCLH)
Share Price: $14.30
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.
Why Do We Steer Clear of NCLH?
- Sluggish trends in its passenger cruise days suggest customers aren’t adopting its solutions as quickly as the company hoped
- Negative free cash flow margin is projected to improve next year, showing the company is making some progress toward financial sustainability
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Norwegian Cruise Line’s stock price of $14.30 implies a valuation ratio of 11.5x forward P/E. If you’re considering NCLH for your portfolio, see our FREE research report to learn more.
Richardson Electronics (RELL)
Share Price: $16.28
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Why Is RELL Not Exciting?
- Muted 5.3% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
- Lacking free cash flow margin got worse over the last five years as its investment needs accelerated
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $16.28 per share, Richardson Electronics trades at 32.2x forward P/E. Check out our free in-depth research report to learn more about why RELL doesn’t pass our bar.
Fidelity National Financial (FNF)
Share Price: $43.80
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE:FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Should You Sell FNF?
- Net premiums earned contracted by 3.8% annually over the last five years, showing unfavorable market dynamics this cycle
- Earnings per share fell by 5.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 2.1% annually over the last five years
Fidelity National Financial is trading at $43.80 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including FNF in your portfolio.
High-Quality Stocks for All Market Conditions
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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.