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3 Stocks Under $50 We Approach with Caution

IRDM 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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead.

Iridium (IRDM)

Share Price: $17.92

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Why Is IRDM Not Exciting?

  1. Estimated sales growth of 2.3% for the next 12 months implies demand will slow from its two-year trend
  2. Free cash flow margin dropped by 4.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Iridium’s stock price of $17.92 implies a valuation ratio of 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than IRDM.

Ally Financial (ALLY)

Share Price: $42.18

Born from the former GMAC (General Motors Acceptance Corporation) and rebranded in 2010, Ally Financial (NYSE: ALLY) operates a digital-first bank offering auto financing, insurance, mortgage lending, and investment services to consumers and commercial clients.

Why Should You Dump ALLY?

  1. Sales tumbled by 3.2% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
  3. Low tier one capital ratio of 9.7% indicates the company may struggle to maintain adequate liquidity during periods of economic stress

Ally Financial is trading at $42.18 per share, or 8.7x forward P/E. Read our free research report to see why you should think twice about including ALLY in your portfolio.

S&T Bancorp (STBA)

Share Price: $40.09

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

Why Are We Hesitant About STBA?

  1. 4.6% annual net interest income growth over the last five years was slower than its banking peers
  2. 33.7 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
  3. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 4.6% annually, worse than its revenue

At $40.09 per share, S&T Bancorp trades at 1x forward P/B. If you’re considering STBA for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 5 Strong Momentum 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-micro-cap company Kadant (+351% 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.

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