Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Amplitude (AMPL)
Share Price: $10.64
Born from the realization that companies were flying blind when it came to understanding user behavior in their digital products, Amplitude (NASDAQ: AMPL) provides a digital analytics platform that helps businesses understand how people use their digital products to improve user experiences and drive revenue growth.
Why Do We Pass on AMPL?
- Customers were hesitant to make long-term commitments to its software as its 13.8% average ARR growth over the last year was sluggish
- Struggled to drive increased usage of its software, demonstrated by its subpar 101% net revenue retention rate
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 2.2 percentage points
Amplitude is trading at $10.64 per share, or 3.7x forward price-to-sales. Check out our free in-depth research report to learn more about why AMPL doesn’t pass our bar.
Benchmark (BHE)
Share Price: $46.52
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Why Do We Think Twice About BHE?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.1% annually over the last two years
- Earnings per share lagged its peers over the last two years as they only grew by 5.4% annually
- Low free cash flow margin of 0.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $46.52 per share, Benchmark trades at 18.9x forward P/E. Dive into our free research report to see why there are better opportunities than BHE.
Bristol-Myers Squibb (BMY)
Share Price: $50.94
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Does BMY Fall Short?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.4% over the last two years was below our standards for the healthcare sector
- Estimated sales decline of 5.1% for the next 12 months implies a challenging demand environment
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Bristol-Myers Squibb’s stock price of $50.94 implies a valuation ratio of 7.7x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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