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.

Select Medical (SEM)

Share Price: $14.91

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Is SEM Risky?

1. Flat admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 11.7% annually
3. Eroding returns on capital suggest its historical profit centers are aging

Select Medical is trading at $14.91 per share, or 12.4x forward P/E. To fully understand why you should be careful with SEM, check out our full research report (it’s free for active Edge members).

Array (AD)

Share Price: $49.76

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE: Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Why Do We Steer Clear of AD?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last five years
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $49.76 per share, Array trades at 20.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including AD in your portfolio.

Flagstar Financial (FLG)

Share Price: $12.71

Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE: FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.

Why Do We Avoid FLG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 23.8% annually over the last two years
2. Net interest margin of 1.9% reflects its high servicing and capital costs
3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 18.3% annually while its revenue grew

Flagstar Financial’s stock price of $12.71 implies a valuation ratio of 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than FLG.

Stocks We Like More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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.