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.
Organon (OGN)
Share Price: $10.26
Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE:OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.
Why Are We Hesitant About OGN?
- Sales tumbled by 2.6% annually over the last five years, showing market trends are working against its favor during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 18.5% annually, worse than its revenue declines
- Free cash flow margin dropped by 25.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Organon is trading at $10.26 per share, or 2.7x forward P/E. To fully understand why you should be careful with OGN, check out our full research report (it’s free).
Glacier Bancorp (GBCI)
Share Price: $48.55
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Are We Cautious About GBCI?
- Muted 7.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Weak unit economics are reflected in its net interest margin of 2.8%, one of the worst among bank companies
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3.1% annually
Glacier Bancorp’s stock price of $48.55 implies a valuation ratio of 1.5x forward P/B. Check out our free in-depth research report to learn more about why GBCI doesn’t pass our bar.
Flagstar Financial (FLG)
Share Price: $12.62
Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE:FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.
Why Are We Out on FLG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.3% annually over the last two years
- Earnings per share fell by 21% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 6.7% annually over the last five years
At $12.62 per share, Flagstar Financial trades at 0.7x forward P/B. If you’re considering FLG for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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