Skip to main content

3 Stocks Under $50 with Warning Signs

APG Cover Image

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.

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.

APi (APG)

Share Price: $42.80

Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.

Why Are We Wary of APG?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Operating margin of 4.8% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

APi’s stock price of $42.80 implies a valuation ratio of 26.4x forward P/E. If you’re considering APG for your portfolio, see our FREE research report to learn more.

ABM (ABM)

Share Price: $44.27

With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.

Why Are We Cautious About ABM?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat
  3. Low free cash flow margin of 1.9% declined over the last five years as its investments ramped, giving it little breathing room

At $44.27 per share, ABM trades at 11.1x forward P/E. Dive into our free research report to see why there are better opportunities than ABM.

Ingram Micro (INGM)

Share Price: $20.89

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Why Does INGM Worry Us?

  1. Sizable revenue base leads to growth challenges as its 2.2% annual revenue increases over the last five years fell short of other business services companies
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 7.8% annually
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Ingram Micro is trading at $20.89 per share, or 6.7x forward P/E. To fully understand why you should be careful with INGM, check out our full research report (it’s free).

Stocks We Like More

Check out the high-quality names we’ve flagged in 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  236.85
-5.75 (-2.37%)
AAPL  258.15
-2.90 (-1.11%)
AMD  222.56
+1.59 (0.72%)
BAC  52.47
-2.07 (-3.80%)
GOOG  335.32
-1.11 (-0.33%)
META  617.90
-13.19 (-2.09%)
MSFT  458.00
-12.67 (-2.69%)
NVDA  181.91
-3.90 (-2.10%)
ORCL  191.59
-10.70 (-5.29%)
TSLA  436.59
-10.61 (-2.37%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.