3 Stocks Under $50 with Warning Signs

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. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Ruger (RGR)

Share Price: $37.67

Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.

Why Do We Steer Clear of RGR?

1. 1.4% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.9% for the last two years
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Ruger’s stock price of $37.67 implies a valuation ratio of 24.3x forward P/E. Check out our free in-depth research report to learn more about why RGR doesn’t pass our bar.

Fastenal (FAST)

Share Price: $43.00

Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Does FAST Fall Short?

1. Annual revenue growth of 5.7% over the last two years was below our standards for the industrials sector
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.4% annually

Fastenal is trading at $43.00 per share, or 35.8x forward P/E. If you’re considering FAST for your portfolio, see our FREE research report to learn more.

MGIC Investment (MTG)

Share Price: $27.18

Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.

Why Does MTG Worry Us?

1. Insurance policy sales contracted this cycle as net premiums earned decreased by 1.1% annually over the last five years
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.2%
3. Earnings per share lagged its peers over the last two years as they only grew by 11.7% annually

At $27.18 per share, MGIC Investment trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including MTG in your portfolio.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.