3 Stocks Under $50 Skating on Thin Ice

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

Astec (ASTE)

Share Price: $35.90

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Is ASTE Risky?

1. Annual revenue growth of 1.2% over the last two years was below our standards for the industrials sector
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.5%
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12.1 percentage points

Astec’s stock price of $35.90 implies a valuation ratio of 14.1x forward price-to-earnings. To fully understand why you should be careful with ASTE, check out our full research report (it’s free).

Dentsply Sirona (XRAY)

Share Price: $15.04

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Why Do We Think XRAY Will Underperform?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Sales were less profitable over the last five years as its earnings per share fell by 7.4% annually, worse than its revenue declines
3. Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam

At $15.04 per share, Dentsply Sirona trades at 8.2x forward price-to-earnings. Read our free research report to see why you should think twice about including XRAY in your portfolio.

Scorpio Tankers (STNG)

Share Price: $37.74

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Why Does STNG Fall Short?

1. Demand for its offerings was relatively low as its number of total vessels has underwhelmed
2. Projected sales decline of 22.9% over the next 12 months indicates demand will continue deteriorating
3. Earnings per share have dipped by 5.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term

Scorpio Tankers is trading at $37.74 per share, or 5.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why STNG doesn’t pass our bar.

Stocks We Like More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.