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3 Stocks Under $50 We Approach with Caution

BOX 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 avoid and some other investments you should consider instead.

Box (BOX)

Share Price: $22.73

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Why Are We Wary of BOX?

  1. Offerings struggled to generate meaningful interest as its average billings growth of 11.9% over the last year did not impress
  2. Anticipated sales growth of 7.7% for the next year implies demand will be shaky
  3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points

Box’s stock price of $22.73 implies a valuation ratio of 2.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BOX.

RingCentral (RNG)

Share Price: $28.32

Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.

Why Should You Sell RNG?

  1. Average billings growth of 4.2% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
  3. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

RingCentral is trading at $28.32 per share, or 1x forward price-to-sales. If you’re considering RNG for your portfolio, see our FREE research report to learn more.

Dole (DOLE)

Share Price: $15.92

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Why Do We Pass on DOLE?

  1. Flat sales over the last three years suggest it must innovate and find new ways to grow
  2. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 8.2% that must be offset through higher volumes
  3. Poor expense management has led to an operating margin of 2.7% that is below the industry average

At $15.92 per share, Dole trades at 11.1x forward P/E. Check out our free in-depth research report to learn more about why DOLE doesn’t pass our bar.

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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