3 Stocks Under $50 That Fall Short

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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Sprout Social (SPT)

Share Price: $10.30

Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ:SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.

Why Does SPT Worry Us?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 11.1% average billings growth over the last year was weak
2. Estimated sales growth of 11% for the next 12 months implies demand will slow from its two-year trend
3. Operating losses show it sacrificed profitability while scaling the business

Sprout Social is trading at $10.30 per share, or 1.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than SPT.

MGM Resorts (MGM)

Share Price: $35.99

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.

Why Do We Pass on MGM?

1. Sizable revenue base leads to growth challenges as its 6% annual revenue increases over the last two years fell short of other consumer discretionary companies
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. High net-debt-to-EBITDA ratio of 13× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $35.99 per share, MGM Resorts trades at 15.9x forward P/E. To fully understand why you should be careful with MGM, check out our full research report (it’s free for active Edge members).

Pitney Bowes (PBI)

Share Price: $10.17

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE:PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Why Do We Think Twice About PBI?

1. Sales tumbled by 10.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Forecasted revenue decline of 4% for the upcoming 12 months implies demand will fall even further
3. Low free cash flow margin of 3.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Pitney Bowes’s stock price of $10.17 implies a valuation ratio of 7.3x forward P/E. Check out our free in-depth research report to learn more about why PBI doesn’t pass our bar.

Stocks We Like More

Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.