3 Stocks Under $50 We Steer Clear Of

LINC 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.

Lincoln Educational (LINC)

Share Price: $19.74

Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Why Do We Pass on LINC?

  1. Sluggish trends in its enrolled students suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Lincoln Educational’s stock price of $19.74 implies a valuation ratio of 9.7x forward EV-to-EBITDA. To fully understand why you should be careful with LINC, check out our full research report (it’s free).

Silgan Holdings (SLGN)

Share Price: $47.57

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Why Do We Think SLGN Will Underperform?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Gross margin of 16.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.5% for the last five years

At $47.57 per share, Silgan Holdings trades at 11.2x forward P/E. Read our free research report to see why you should think twice about including SLGN in your portfolio.

Verizon (VZ)

Share Price: $43.69

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.

Why Do We Steer Clear of VZ?

  1. Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
  2. Projected sales growth of 2.1% for the next 12 months suggests sluggish demand
  3. Free cash flow margin is forecasted to shrink by 1.8 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors

Verizon is trading at $43.69 per share, or 9.2x forward P/E. Check out our free in-depth research report to learn more about why VZ doesn’t pass our bar.

Stocks We Like More

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Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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).

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