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.
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.
Zumiez (ZUMZ)
Share Price: $30.01
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Should You Dump ZUMZ?
- Reduction in its number of stores signals a focus on profitability through targeted consolidation
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Zumiez’s stock price of $30.01 implies a valuation ratio of 33.8x forward P/E. Dive into our free research report to see why there are better opportunities than ZUMZ.
Resideo (REZI)
Share Price: $33.73
Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Why Does REZI Fall Short?
- Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin shrank by 22.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
Resideo is trading at $33.73 per share, or 12.5x forward P/E. Check out our free in-depth research report to learn more about why REZI doesn’t pass our bar.
HP (HPQ)
Share Price: $25.08
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Is HPQ Risky?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share fell by 2.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.1 percentage points
At $25.08 per share, HP trades at 8.5x forward P/E. Read our free research report to see why you should think twice about including HPQ in your portfolio.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
