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3 Stocks Under $50 We Approach with Caution

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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.

Mission Produce (AVO)

Share Price: $11.93

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Why Do We Steer Clear of AVO?

  1. Modest revenue base of $1.34 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Sales are projected to tank by 17% over the next 12 months as demand evaporates
  3. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 12%

At $11.93 per share, Mission Produce trades at 19.6x forward P/E. Read our free research report to see why you should think twice about including AVO in your portfolio.

Pitney Bowes (PBI)

Share Price: $15.48

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Why Are We Cautious About PBI?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 12.6% annually over the last five years
  2. Forecasted revenue decline of 2% for the upcoming 12 months implies demand will fall even further

Pitney Bowes is trading at $15.48 per share, or 9.3x forward P/E. To fully understand why you should be careful with PBI, check out our full research report (it’s free).

Horace Mann Educators (HMN)

Share Price: $47.64

Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.

Why Are We Out on HMN?

  1. Sluggish 6.2% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
  2. Book value per share tumbled by 2.3% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
  3. ROE of 6.8% reflects management’s challenges in identifying attractive investment opportunities

Horace Mann Educators’s stock price of $47.64 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why HMN doesn’t pass our bar.

Stocks We Like More

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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.

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