3 Stocks Under $50 Walking a Fine Line

via StockStory

NX Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Quanex (NX)

Share Price: $18.71

Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Why Are We Cautious About NX?

  1. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 18.2 percentage points
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 8.5% annually
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Quanex’s stock price of $18.71 implies a valuation ratio of 8.9x forward P/E. To fully understand why you should be careful with NX, check out our full research report (it’s free).

Douglas Dynamics (PLOW)

Share Price: $36.53

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.

Why Is PLOW Not Exciting?

  1. 1.8% annual revenue growth over the last two years was slower than its industrials peers
  2. 2.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $36.53 per share, Douglas Dynamics trades at 15.7x forward P/E. Read our free research report to see why you should think twice about including PLOW in your portfolio.

Columbia Banking System (COLB)

Share Price: $28.94

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 Wary of COLB?

  1. Annual revenue growth of 5.7% over the last two years was below our standards for the banking sector
  2. Incremental sales over the last two years were less profitable as its 2.8% annual earnings per share growth lagged its revenue gains
  3. Tangible book value per share tumbled by 1.2% annually over the last five years, showing banking sector trends are working against its favor during this cycle

Columbia Banking System is trading at $28.94 per share, or 1.1x forward P/B. If you’re considering COLB for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.