3 Stocks Under $50 We Think Twice About

via StockStory

KSS Cover Image

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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Kohl's (KSS)

Share Price: $17.96

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Why Do We Think KSS Will Underperform?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Earnings per share have contracted by 29.6% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
  3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Kohl’s stock price of $17.96 implies a valuation ratio of 14.3x forward P/E. Check out our free in-depth research report to learn more about why KSS doesn’t pass our bar.

Calavo (CVGW)

Share Price: $26.33

A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.

Why Do We Avoid CVGW?

  1. Annual sales declines of 18.3% for the past three years show its products struggled to connect with the market
  2. Smaller revenue base of $648.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 10% that must be offset through higher volumes

At $26.33 per share, Calavo trades at 16.7x forward P/E. If you’re considering CVGW for your portfolio, see our FREE research report to learn more.

Tri Pointe Homes (TPH)

Share Price: $35.46

Established in 2009 in California, Tri Pointe Homes (NYSE:TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Why Do We Pass on TPH?

  1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 11.2% declines over the past two years
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Sales were less profitable over the last two years as its earnings per share fell by 7.5% annually, worse than its revenue declines

Tri Pointe Homes is trading at $35.46 per share, or 16x forward P/E. To fully understand why you should be careful with TPH, check out our full research report (it’s free).

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 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.