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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
VF Corp (VFC)
Share Price: $11.81
Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
Why Do We Steer Clear of VFC?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
VF Corp is trading at $11.81 per share, or 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than VFC.
ABM (ABM)
Share Price: $43.55
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 Do We Pass on ABM?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.3 percentage points
ABM’s stock price of $43.55 implies a valuation ratio of 11.2x forward P/E. To fully understand why you should be careful with ABM, check out our full research report (it’s free).
Enphase (ENPH)
Share Price: $35.90
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.
Why Are We Cautious About ENPH?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 23.7 percentage points
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $35.90 per share, Enphase trades at 10.7x forward P/E. Read our free research report to see why you should think twice about including ENPH in your portfolio.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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
