Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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 pass on and some alternatives you should look into instead.
Zillow (ZG)
Share Price: $31.91
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.
Why Are We Bearish on ZG?
- Products and services aren’t resonating with the market as its revenue declined by 4.7% annually over the last five years
- Earnings per share lagged its peers over the last five years as they only grew by 10.6% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 12.8% for the last two years
Zillow’s stock price of $31.91 implies a valuation ratio of 12.3x forward P/E. If you’re considering ZG for your portfolio, see our FREE research report to learn more.
Columbia Banking System (COLB)
Share Price: $31.01
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Are We Cautious About COLB?
- Estimated net interest income growth of 4.6% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share fell by 4.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 1.7% annually over the last five years
At $31.01 per share, Columbia Banking System trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than COLB.
Range Resources (RRC)
Share Price: $37.88
Focused almost entirely on the Marcellus Shale beneath Pennsylvania's forests and farmland, Range Resources (NYSE:RRC) drills for and produces natural gas, natural gas liquids, and oil from shale formations.
Why Does RRC Worry Us?
- 8.6% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
- Efficiency has decreased over the last five years as its EBITDA margin fell by 5.1 percentage points
Range Resources is trading at $37.88 per share, or 10.2x forward P/E. Read our free research report to see why you should think twice about including RRC in your portfolio.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.