Three Stocks Under $50 to Avoid: Teradata, Foot Locker, and Corebridge Financial

Three stocks under $50 to avoid are Teradata (TDC), Foot Locker (FL), and Corebridge Financial (CRBG). TDC has declining billings, projected sales decline, and poor unit economics. FL has poor same-store sales performance and operating margin. CRBG has declining net premiums earned and inability to adjust its cost structure.

Investors often seek out stocks trading between $10 and $50, as these represent businesses that have weathered early challenges. However, it is crucial to remain vigilant, as some of these companies may still have unproven business models or face significant headwinds. This article highlights three stocks under $50 that investors should avoid, based on recent performance and financial indicators.

Teradata (TDC)

Teradata (NYSE: TDC) offers a software-as-service platform that helps organizations manage and analyze their data. However, several red flags suggest caution. Over the past year, Teradata's billings have averaged a 6.2% decline, indicating a loss of customer commitment to its platform. The company projects a 2.6% sales decline over the next 12 months, signaling continued demand deterioration. Additionally, Teradata's gross margin of 59.3% is one of the worst among software companies, reflecting steep infrastructure costs. At $20.43 per share, Teradata trades at 1.2x forward price-to-sales, making it an attractive sell candidate [1].

Foot Locker (FL)

Foot Locker (NYSE: FL) is a specialty retailer known for its athletic footwear, clothing, and accessories. However, the company has struggled with poor same-store sales performance over the past two years, indicating difficulty in attracting new shoppers. Its operating margin of -0.5% falls short of the industry average, and the smaller profit dollars make it harder to react to market developments. Foot Locker's 7x net-debt-to-EBITDA ratio shows it is overleveraged, increasing the probability of shareholder dilution. At $24.59 per share, Foot Locker trades at 19.2x forward P/E, making it a risky investment [2].

Corebridge Financial (CRBG)

Corebridge Financial (NYSE: CRBG), spun off from insurance giant AIG in 2022, provides retirement solutions, annuities, life insurance, and institutional risk management products. However, the company has faced challenges with declining net premiums earned, averaging a 2.9% annual decline over the last four years. Its inability to adjust cost structures while revenue declined led to a 15.6 percentage point drop in pre-tax profit margin. Corebridge Financial's stock price of $33.34 implies a valuation ratio of 1.4x forward P/B, making it an unappealing investment [3].

Conclusion

Investors should exercise caution when considering Teradata (TDC), Foot Locker (FL), and Corebridge Financial (CRBG). These companies face significant challenges that may hinder their future growth and profitability. Instead, investors should focus on companies with strong fundamentals and promising growth prospects.

References

[1] https://stockstory.org/us/stocks/nyse/tdc/news/buy-or-sell/3-stocks-under-dollar50-walking-a-fine-line

[2] https://www.ainvest.com/news/teradata-q2-2025-earnings-revenue-exceeds-expectations-gaap-eps-misses-mark-2508/

[3] https://stockinvest.us/stock/FL