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3 Stocks Under $50 in Hot Water

SBGI 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.

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.

Sinclair (SBGI)

Share Price: $14.36

With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ: SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.

Why Are We Out on SBGI?

  1. Annual sales declines of 7.2% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Projected sales decline of 9.2% for the next 12 months points to a tough demand environment ahead
  3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 25.1% annually

Sinclair is trading at $14.36 per share, or 2.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SBGI doesn’t pass our bar.

Carnival (CCL)

Share Price: $23.65

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Do We Think CCL Will Underperform?

  1. Annual sales growth of 4% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
  2. Earnings per share fell by 16.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. Negative returns on capital show that some of its growth strategies have backfired

Carnival’s stock price of $23.65 implies a valuation ratio of 13.1x forward P/E. To fully understand why you should be careful with CCL, check out our full research report (it’s free).

Premier (PINC)

Share Price: $22.91

Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.

Why Should You Sell PINC?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.3% annually over the last 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. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

At $22.91 per share, Premier trades at 17.1x forward P/E. Read our free research report to see why you should think twice about including PINC in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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