3 Stocks Under $50 We Approach with Caution

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Medifast (MED)

Share Price: $11.46

Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.

Why Are We Out on MED?

1. Products aren't resonating with the market as its revenue declined by 36% annually over the last three years
2. Modest revenue base of $429.7 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable

At $11.46 per share, Medifast trades at 3.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including MED in your portfolio.

Integra LifeSciences (IART)

Share Price: $11.10

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Why Should You Dump IART?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Free cash flow margin dropped by 19.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Integra LifeSciences is trading at $11.10 per share, or 4.7x forward P/E. Dive into our free research report to see why there are better opportunities than IART.

Washington Trust Bancorp (WASH)

Share Price: $34.49

Founded in 1800 and operating as Rhode Island's oldest community bank, Washington Trust Bancorp (NASDAQ:WASH) is a regional bank holding company offering commercial banking, mortgage lending, personal banking, and wealth management services.

Why Do We Avoid WASH?

1. Net interest income trends were unexciting over the last five years as its 3.7% annual growth was below the typical banking firm
2. Inferior net interest margin of 2.2% means it must compensate for lower profitability through increased loan originations
3. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 7.8% annually

Washington Trust Bancorp’s stock price of $34.49 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why WASH doesn’t pass our bar.

Stocks We Like More

Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.