3 Stocks Under $50 Walking a Fine Line

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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.

CarGurus (CARG)

Share Price: $32.88

Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.

Why Are We Cautious About CARG?

1. Products and services aren't resonating with the market as its revenue declined by 15.1% annually over the last three years
2. Modest 1.7% annual growth in paying dealers over the last two years indicates potential challenges in customer acquisition and retention
3. Estimated sales growth of 3.3% for the next 12 months is soft and implies weaker demand

At $32.88 per share, CarGurus trades at 10.3x forward EV/EBITDA. To fully understand why you should be careful with CARG, check out our full research report (it’s free).

Kohl's (KSS)

Share Price: $13.79

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Why Should You Dump KSS?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Kohl’s stock price of $13.79 implies a valuation ratio of 52.3x forward P/E. If you’re considering KSS for your portfolio, see our FREE research report to learn more.

Fresh Del Monte Produce (FDP)

Share Price: $35.57

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Why Do We Steer Clear of FDP?

1. Flat sales over the last three years suggest it must innovate and find new ways to grow
2. Gross margin of 8.3% is an output of its commoditized products
3. Underwhelming 5.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

Fresh Del Monte Produce is trading at $35.57 per share, or 15.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FDP doesn’t pass our bar.

Stocks We Like More

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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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