3 Stocks Under $50 in the Doghouse

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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

Comcast (CMCSA)

Share Price: $34.10

Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.

Why Is CMCSA Risky?

1. Demand for its offerings was relatively low as its number of domestic broadband customers has underwhelmed
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $34.10 per share, Comcast trades at 7.8x forward P/E. Dive into our free research report to see why there are better opportunities than CMCSA.

LGI Homes (LGIH)

Share Price: $47.35

Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

Why Should You Dump LGIH?

1. Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy
2. Diminishing returns on capital suggest its earlier profit pools are drying up
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

LGI Homes’s stock price of $47.35 implies a valuation ratio of 6.1x forward P/E. If you’re considering LGIH for your portfolio, see our FREE research report to learn more.

10x Genomics (TXG)

Share Price: $10.73

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 Do We Avoid TXG?

1. Negative free cash flow raises questions about the return timeline for its investments
2. Negative returns on capital show management lost money while trying to expand the business, and its decreasing returns suggest its historical profit centers are aging

10x Genomics is trading at $10.73 per share, or 2.3x forward price-to-sales. To fully understand why you should be careful with TXG, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

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