Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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 swipe left on and some alternatives you should look into instead.
Wendy's (WEN)
Share Price: $15.27
Founded by Dave Thomas in 1969, Wendy’s (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.
Why Is WEN Not Exciting?
- Lackluster 5.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Projected sales are flat for the next 12 months, implying demand will slow from its five-year trend
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Wendy’s stock price of $15.27 implies a valuation ratio of 15x forward price-to-earnings. Check out our free in-depth research report to learn more about why WEN doesn’t pass our bar.
Luxfer (LXFR)
Share Price: $12.13
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.
Why Do We Steer Clear of LXFR?
- Annual sales declines of 3.2% for the past one years show its products and services struggled to connect with the market during this cycle
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $12.13 per share, Luxfer trades at 11.7x forward price-to-earnings. If you’re considering LXFR for your portfolio, see our FREE research report to learn more.
Enovis (ENOV)
Share Price: $39.19
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Do We Avoid ENOV?
- Annual sales declines of 8.7% for the past five years show its products and services struggled to connect with the market during this cycle
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
Enovis is trading at $39.19 per share, or 12.5x forward price-to-earnings. Read our free research report to see why you should think twice about including ENOV in your portfolio.
Stocks We Like More
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.