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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to pass on and some alternatives you should look into instead.
Central Garden & Pet (CENT)
Share Price: $43.31
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Why Do We Think Twice About CENT?
- Annual sales declines of 1.9% for the past three years show its products struggled to connect with the market
- Forecasted revenue decline of 5.1% for the upcoming 12 months implies demand will fall even further
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Central Garden & Pet is trading at $43.31 per share, or 14.7x forward P/E. To fully understand why you should be careful with CENT, check out our full research report (it’s free).
Bausch + Lomb (BLCO)
Share Price: $16.73
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE:BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Does BLCO Worry Us?
- Earnings per share have dipped by 18% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.6 percentage points
- Underwhelming 1.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Bausch + Lomb’s stock price of $16.73 implies a valuation ratio of 16.7x forward P/E. If you’re considering BLCO for your portfolio, see our FREE research report to learn more.
Viatris (VTRS)
Share Price: $16.31
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ:VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Should You Sell VTRS?
- Sales tumbled by 1.7% annually over the last two years, showing market trends are working against it during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 8% annually, worse than its revenue declines
- Push for growth has led to negative returns on capital, signaling value destruction, and its shrinking returns suggest its past profit sources are losing steam
At $16.31 per share, Viatris trades at 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than VTRS.
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 meet near-term momentum — both boxes checked at the same time.
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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.