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. Keeping that in mind, here are three stocks under $50 to pass on and some alternatives you should look into instead.
Matthews (MATW)
Share Price: $18.68
Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.
Why Is MATW Risky?
- Sales tumbled by 7.4% annually over the last five years, showing consumer trends are working against it
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Matthews is trading at $18.68 per share, or 23.9x forward P/E. Check out our free in-depth research report to learn more about why MATW doesn’t pass our bar.
Enact Holdings (ACT)
Share Price: $45.15
Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ:ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.
Why Should You Sell ACT?
- Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.8% annually
At $45.15 per share, Enact Holdings trades at 1.1x forward P/B. To fully understand why you should be careful with ACT, check out our full research report (it’s free).
Coastal Financial (CCB)
Share Price: $41.02
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ:CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Does CCB Worry Us?
- Net interest margin grew by 2.8 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Efficiency ratio didn’t move over the last five years, showing it couldn’t increase its operational effectiveness
- Earnings per share fell by 16.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Coastal Financial’s stock price of $41.02 implies a valuation ratio of 1.3x forward P/B. If you’re considering CCB for your portfolio, see our FREE research report to learn more.
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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.