3 Stocks Under $50 We Keep Off Our Radar

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 avoid and some other investments you should consider instead.

Unity (U)

Share Price: $36.49

Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.

Why Does U Give Us Pause?

1. Billings have dropped by 10.2% over the last year, suggesting it might have to lower prices to stimulate growth
2. Net revenue retention rate of 96% shows it has a tough time retaining customers
3. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

Unity’s stock price of $36.49 implies a valuation ratio of 8.3x forward price-to-sales. Read our free research report to see why you should think twice about including U in your portfolio.

YETI (YETI)

Share Price: $35.30

Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.

Why Does YETI Worry Us?

1. Sales trends were unexciting over the last two years as its 7.1% annual growth was below the typical consumer discretionary company
2. Estimated sales growth of 3.2% for the next 12 months implies demand will slow from its two-year trend
3. Waning returns on capital imply its previous profit engines are losing steam

YETI is trading at $35.30 per share, or 13x forward P/E. Check out our free in-depth research report to learn more about why YETI doesn’t pass our bar.

Dime Community Bancshares (DCOM)

Share Price: $28.69

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ:DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Why Are We Wary of DCOM?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.2% annually over the last two years
2. 51.7 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
3. Sales were less profitable over the last two years as its earnings per share fell by 35% annually, worse than its revenue declines

At $28.69 per share, Dime Community Bancshares trades at 0.9x forward P/B. To fully understand why you should be careful with DCOM, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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