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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Rapid7 (RPD)
Share Price: $24.48
Founded in 2000 with the idea that network security comes before endpoint security, Rapid7 (NASDAQ: RPD) provides software as a service that helps companies understand where they are exposed to cyber security risks, quickly detect breaches and respond to them.
Why Does RPD Worry Us?
- Average billings growth of 4.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its three-year trend
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
Rapid7’s stock price of $24.48 implies a valuation ratio of 1.8x forward price-to-sales. If you’re considering RPD for your portfolio, see our FREE research report to learn more.
Brown-Forman (BF.B)
Share Price: $34.40
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Why Are We Hesitant About BF.B?
- Muted 2.6% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
At $34.40 per share, Brown-Forman trades at 19.2x forward P/E. To fully understand why you should be careful with BF.B, check out our full research report (it’s free).
Supernus Pharmaceuticals (SUPN)
Share Price: $32.20
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Should You Dump SUPN?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Smaller revenue base of $668 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Supernus Pharmaceuticals is trading at $32.20 per share, or 15.8x forward P/E. Check out our free in-depth research report to learn more about why SUPN doesn’t pass our bar.
Stocks That Overcame Trump’s 2018 Tariffs
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 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
