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3 Stocks Under $50 We Find Risky

GME Cover Image

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.

These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

GameStop (GME)

Share Price: $22.37

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

Why Should You Dump GME?

  1. GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
  2. The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
  3. On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push

GameStop is trading at $22.37 per share, or 25.6x forward P/E. Dive into our free research report to see why there are better opportunities than GME.

BrightSpring Health Services (BTSG)

Share Price: $31.65

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

Why Do We Think Twice About BTSG?

  1. Earnings per share have contracted by 46% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
  2. Lacking free cash flow margin got worse over the last five years as its investment needs accelerated
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $31.65 per share, BrightSpring Health Services trades at 27.1x forward P/E. If you’re considering BTSG for your portfolio, see our FREE research report to learn more.

Perella Weinberg (PWP)

Share Price: $18.68

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Why Are We Wary of PWP?

  1. Flat earnings per share over the last three years underperformed the sector average
  2. Negative return on equity shows management lost money while trying to expand the business

Perella Weinberg’s stock price of $18.68 implies a valuation ratio of 17.4x forward P/E. To fully understand why you should be careful with PWP, check out our full research report (it’s free for active Edge members).

Stocks We Like More

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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