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.
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 avoid and some other investments you should consider instead.
Tractor Supply (TSCO)
Share Price: $35.65
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Does TSCO Fall Short?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.2% over the last three years was below our standards for the consumer retail sector
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Free cash flow margin dropped by 3.5 percentage points over the last year, implying the company became more capital intensive as competition picked up
At $35.65 per share, Tractor Supply trades at 18.4x forward P/E. If you’re considering TSCO for your portfolio, see our FREE research report to learn more.
Lincoln Educational (LINC)
Share Price: $30.12
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Why Are We Out on LINC?
- Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 5.3 percentage points
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Lincoln Educational is trading at $30.12 per share, or 31.1x forward P/E. Check out our free in-depth research report to learn more about why LINC doesn’t pass our bar.
Fulton Financial (FULT)
Share Price: $24.65
Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ:FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.
Why Does FULT Worry Us?
- Annual revenue growth of 9.3% over the last five years was below our standards for the banking sector
- Annual earnings per share growth of 5.2% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Projected tangible book value per share growth of 10.3% for the next 12 months suggests sluggish capital generation
Fulton Financial’s stock price of $24.65 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including FULT in your portfolio.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.