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3 Stocks Under $50 with Warning Signs

PATH Cover Image

Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.

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.

UiPath (PATH)

Share Price: $11.14

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

Why Does PATH Fall Short?

  1. Products, pricing, or go-to-market strategy may need some adjustments as its 4.2% average billings growth over the last year was weak
  2. Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
  3. Historical operating margin losses point to an inefficient cost structure

UiPath is trading at $11.14 per share, or 3.9x forward price-to-sales. To fully understand why you should be careful with PATH, check out our full research report (it’s free).

Pediatrix Medical Group (MD)

Share Price: $17.01

With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE: MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.

Why Is MD Risky?

  1. Disappointing comparable store sales over the past two years show customers aren’t responding well to its offerings and value proposition
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $17.01 per share, Pediatrix Medical Group trades at 10.3x forward P/E. Read our free research report to see why you should think twice about including MD in your portfolio.

Perella Weinberg (PWP)

Share Price: $22.40

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Why Does PWP Give Us Pause?

  1. Flat earnings per share over the last three years lagged its peers
  2. Negative return on equity shows that some of its growth strategies have backfired

Perella Weinberg’s stock price of $22.40 implies a valuation ratio of 16.4x forward P/E. Check out our free in-depth research report to learn more about why PWP doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

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