The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
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 swipe left on and some alternatives you should look into instead.
Bath and Body Works (BBWI)
Share Price: $19.62
Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Are We Cautious About BBWI?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Sales are projected to tank by 5.2% over the next 12 months as its demand continues evaporating
- Earnings per share have dipped by 5.3% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Bath and Body Works is trading at $19.62 per share, or 7.4x forward P/E. Read our free research report to see why you should think twice about including BBWI in your portfolio.
MDU Resources (MDU)
Share Price: $19.45
Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE: MDU) provides products and services in the utilities and construction materials industries.
Why Are We Out on MDU?
- Annual sales declines of 15.3% for the past five years show its products and services struggled to connect with the market during this cycle
- Low free cash flow margin of -0.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
MDU Resources trades at a stock price of $19.45. Check out our free in-depth research report to learn more about why MDU doesn’t pass our bar.
Merchants Bancorp (MBIN)
Share Price: $36.21
With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.
Why Do We Think Twice About MBIN?
- Net interest margin of 2.9% reflects its high servicing and capital costs
- Earnings per share fell by 8.4% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Tier one capital ratio of 8.9% is insufficient to meet regulatory requirements, increasing the probability of government intervention
At $36.21 per share, Merchants Bancorp trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than MBIN.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% 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.
