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.
Marcus & Millichap (MMI)
Share Price: $29.35
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Is MMI Risky?
- Sales were flat over the last five years, indicating it’s failed to expand its business
- Poor free cash flow margin of -0.2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital suggest its historical profit centers are aging
At $29.35 per share, Marcus & Millichap trades at 140x forward P/E. To fully understand why you should be careful with MMI, check out our full research report (it’s free for active Edge members).
Glacier Bancorp (GBCI)
Share Price: $40.66
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Does GBCI Worry Us?
- 7.5% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.2% annually while its revenue grew
Glacier Bancorp is trading at $40.66 per share, or 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than GBCI.
PennyMac Mortgage Investment Trust (PMT)
Share Price: $11.96
Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.
Why Do We Think Twice About PMT?
- Sales tumbled by 21.6% annually over the last five years, showing market trends are working against its favor during this cycle
- Estimated net interest income decline of 116% for the next 12 months implies a challenging demand environment
- Annual tangible book value per share declines of 5.2% for the past five years show its capital management struggled during this cycle
PennyMac Mortgage Investment Trust’s stock price of $11.96 implies a valuation ratio of 0.8x forward P/B. Read our free research report to see why you should think twice about including PMT in your portfolio.
Stocks We Like More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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 Tecnoglass (+1,754% 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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