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.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
First Watch (FWRG)
Share Price: $12.08
Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.
Why Does FWRG Fall Short?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Negative free cash flow raises questions about the return timeline for its investments
- 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
First Watch is trading at $12.08 per share, or 60.3x forward P/E. Dive into our free research report to see why there are better opportunities than FWRG.
Avantor (AVTR)
Share Price: $11.36
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Why Should You Dump AVTR?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 4.5% annually
At $11.36 per share, Avantor trades at 13.9x forward P/E. Read our free research report to see why you should think twice about including AVTR in your portfolio.
CVB Financial (CVBF)
Share Price: $22.71
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Why Do We Avoid CVBF?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2% annually over the last two years
- Net interest income trends were unexciting over the last five years as its 2% annual growth was below the typical banking firm
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
CVB Financial’s stock price of $22.71 implies a valuation ratio of 1.2x forward P/B. If you’re considering CVBF for your portfolio, see our FREE research report to learn more.
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
