3 Stocks Under $50 We Find Risky

Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.

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

10x Genomics (TXG)

Share Price: $13.30

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ:TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

Why Does TXG Give Us Pause?

1. 6.5% annual revenue growth over the last two years was slower than its healthcare peers
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Negative returns on capital show management lost money while trying to expand the business

At $13.30 per share, 10x Genomics trades at 2.8x forward price-to-sales. Read our free research report to see why you should think twice about including TXG in your portfolio.

Cogent (CCOI)

Share Price: $37.33

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Why Are We Cautious About CCOI?

1. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 39.7 percentage points
2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Cogent is trading at $37.33 per share, or 4.8x forward EV-to-EBITDA. If you’re considering CCOI for your portfolio, see our FREE research report to learn more.

Annaly Capital Management (NLY)

Share Price: $22.20

Operating as a real estate investment trust since 1996 with a focus on generating income from interest rate spreads, Annaly Capital Management (NYSE:NLY) is a diversified capital manager that invests in agency mortgage-backed securities, residential mortgage loans, and mortgage servicing rights.

Why Are We Out on NLY?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 22% annually over the last five years
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 11.1% annually over the last five years

Annaly Capital Management’s stock price of $22.20 implies a valuation ratio of 1.2x forward P/B. To fully understand why you should be careful with NLY, check out our full research report (it’s free).

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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-small-cap company Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.