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. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.
Appian (APPN)
Share Price: $29.75
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Is APPN Not Exciting?
- Revenue increased by 14.6% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 6 percentage points over the next year
Appian’s stock price of $29.75 implies a valuation ratio of 2.8x forward price-to-sales. Read our free research report to see why you should think twice about including APPN in your portfolio.
Richardson Electronics (RELL)
Share Price: $10.85
Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Why Is RELL Risky?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 3.4% declines over the past two years
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.9% for the last five years
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Richardson Electronics is trading at $10.85 per share, or 34.5x forward P/E. Dive into our free research report to see why there are better opportunities than RELL.
Cognex (CGNX)
Share Price: $39.67
Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ: CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.
Why Do We Avoid CGNX?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 12.9 percentage points
- Free cash flow margin dropped by 10.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $39.67 per share, Cognex trades at 39x forward P/E. If you’re considering CGNX for your portfolio, see our FREE research report to learn more.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
