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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Asana (ASAN)
Share Price: $13.79
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Why Are We Out on ASAN?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9.6% underwhelmed
- Competitive market dynamics make it difficult to retain customers, leading to a weak 95.7% net revenue retention rate
- Drawn-out sales process reflects its software’s integration hurdles with enterprise clients, restraining customer growth potential
Asana is trading at $13.79 per share, or 4x forward price-to-sales. To fully understand why you should be careful with ASAN, check out our full research report (it’s free for active Edge members).
Arhaus (ARHS)
Share Price: $9.83
With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ: ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.
Why Are We Wary of ARHS?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Smaller revenue base of $1.34 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Earnings per share have dipped by 10.2% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Arhaus’s stock price of $9.83 implies a valuation ratio of 21.9x forward P/E. Read our free research report to see why you should think twice about including ARHS in your portfolio.
Orion (ORN)
Share Price: $11.31
Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.
Why Do We Think ORN Will Underperform?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 1.7% declines over the past two years
- Earnings per share fell by 3.8% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Poor free cash flow margin of -0.7% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $11.31 per share, Orion trades at 36.5x forward P/E. Dive into our free research report to see why there are better opportunities than ORN.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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
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