3 Stocks Under $50 We Steer Clear Of

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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

Dropbox (DBX)

Share Price: $25.98

Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ:DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.

Why Do We Pass on DBX?

1. Offerings couldn’t generate interest over the last year as its billings have averaged 1.1% declines
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Operating margin improved by 8.3 percentage points over the last year as it eliminated redundant costs

At $25.98 per share, Dropbox trades at 2.7x forward price-to-sales. Check out our free in-depth research report to learn more about why DBX doesn’t pass our bar.

Hub Group (HUBG)

Share Price: $43.05

Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.

Why Do We Think HUBG Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9% annually over the last two years
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 28% annually, worse than its revenue
3. Waning returns on capital imply its previous profit engines are losing steam

Hub Group is trading at $43.05 per share, or 22.2x forward P/E. Dive into our free research report to see why there are better opportunities than HUBG.

International Paper (IP)

Share Price: $42.38

Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

Why Should You Sell IP?

1. The company has faced growth challenges as its 3.9% annual revenue increases over the last five years fell short of other industrials companies
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.4 percentage points
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

International Paper’s stock price of $42.38 implies a valuation ratio of 25.1x forward P/E. If you’re considering IP for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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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.