3 Stocks Under $50 We Think Twice About

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 swipe left on and some alternatives you should look into instead.

DistributionNOW (DNOW)

Share Price: $15.72

Spun off from National Oilwell Varco, DistributionNOW (NYSE:DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.

Why Is DNOW Risky?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Earnings per share have dipped by 4.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

DistributionNOW’s stock price of $15.72 implies a valuation ratio of 18.7x forward EV-to-EBITDA. If you’re considering DNOW for your portfolio, see our FREE research report to learn more.

Pfizer (PFE)

Share Price: $24.84

With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.

Why Is PFE Not Exciting?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Free cash flow margin dropped by 17.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Pfizer is trading at $24.84 per share, or 8.6x forward P/E. Check out our free in-depth research report to learn more about why PFE doesn’t pass our bar.

Truist Financial (TFC)

Share Price: $45.26

Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE:TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.

Why Does TFC Fall Short?

1. Flat net interest income over the last five years suggest it must find different ways to grow during this cycle
2. Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.2% annually

At $45.26 per share, Truist Financial trades at 1x forward P/B. Read our free research report to see why you should think twice about including TFC in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. 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 Kadant (+351% 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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