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3 Stocks Under $50 in Hot Water

REYN 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.

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.

Reynolds (REYN)

Share Price: $23.72

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Why Should You Sell REYN?

  1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Forecasted revenue decline of 1.1% for the upcoming 12 months implies demand will fall off a cliff
  3. Free cash flow margin shrank by 4.4 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Reynolds’s stock price of $23.72 implies a valuation ratio of 13.4x forward price-to-earnings. Read our free research report to see why you should think twice about including REYN in your portfolio.

Frontdoor (FTDR)

Share Price: $39.01

Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ: FTDR) is a provider of home warranty and service plans.

Why Are We Hesitant About FTDR?

  1. Performance surrounding its home service plans has lagged its peers
  2. Estimated sales growth of 9.9% for the next 12 months is soft and implies weaker demand
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.4 percentage points

At $39.01 per share, Frontdoor trades at 12.3x forward price-to-earnings. To fully understand why you should be careful with FTDR, check out our full research report (it’s free).

Progyny (PGNY)

Share Price: $22.20

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Why Does PGNY Fall Short?

  1. Revenue base of $1.17 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Estimated sales growth of 3.9% for the next 12 months implies demand will slow from its two-year trend
  3. Negative returns on capital show management lost money while trying to expand the business

Progyny is trading at $22.20 per share, or 13.6x forward price-to-earnings. If you’re considering PGNY for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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Take advantage of the rebound by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

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