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3 Stocks Under $50 We Think Twice About

RSI Cover Image

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.

Rush Street Interactive (RSI)

Share Price: $21.53

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.

Why Should You Sell RSI?

  1. Lackluster 28.1% annual revenue growth over the last two years indicates the company is losing ground to competitors
  2. Operating margin of 5.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Projected 1.2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

Rush Street Interactive’s stock price of $21.53 implies a valuation ratio of 39.8x forward P/E. If you’re considering RSI for your portfolio, see our FREE research report to learn more.

Genco (GNK)

Share Price: $22.95

Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Why Do We Steer Clear of GNK?

  1. Annual sales declines of 2.4% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 43.5% annually, worse than its revenue
  3. Free cash flow margin shrank by 58.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $22.95 per share, Genco trades at 21.4x forward P/E. To fully understand why you should be careful with GNK, check out our full research report (it’s free).

Franklin Resources (BEN)

Share Price: $25

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Why Do We Avoid BEN?

  1. Muted 4.5% annual revenue growth over the last two years shows its demand lagged behind its financials peers
  2. Earnings per share fell by 2.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. Low return on equity reflects management’s struggle to allocate funds effectively

Franklin Resources is trading at $25 per share, or 9.7x forward P/E. Check out our free in-depth research report to learn more about why BEN doesn’t pass our bar.

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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