3 Stocks Under $50 Facing Headwinds

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.

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 avoid and some other investments you should consider instead.

Wiley (WLY)

Share Price: $43.92

With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.

Why Do We Think WLY Will Underperform?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.6% annually over the last five years
2. Flat earnings per share over the last two years lagged its peers
3. 4.3 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

Wiley’s stock price of $43.92 implies a valuation ratio of 18.2x forward EV-to-EBITDA. If you’re considering WLY for your portfolio, see our FREE research report to learn more.

Sealed Air (SEE)

Share Price: $32.30

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Why Do We Steer Clear of SEE?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 7.5% annually, worse than its revenue
3. Waning returns on capital imply its previous profit engines are losing steam

At $32.30 per share, Sealed Air trades at 10.6x forward P/E. To fully understand why you should be careful with SEE, check out our full research report (it’s free).

EchoStar (SATS)

Share Price: $23.39

Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ:SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.

Why Is SATS Not Exciting?

1. Earnings per share fell by 11.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
2. Free cash flow margin dropped by 6.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

EchoStar is trading at $23.39 per share, or 4.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SATS.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.