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.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Lincoln Educational (LINC)
Share Price: $21.50
Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Why Are We Hesitant About LINC?
- Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
- Negative free cash flow raises questions about the return timeline for its investments
- Waning returns on capital imply its previous profit engines are losing steam
At $21.50 per share, Lincoln Educational trades at 10.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LINC in your portfolio.
Coupang (CPNG)
Share Price: $27.28
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Does CPNG Fall Short?
- High servicing costs result in an inferior gross margin of 28% that must be offset through higher volumes
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Coupang is trading at $27.28 per share, or 28.2x forward EV/EBITDA. If you’re considering CPNG for your portfolio, see our FREE research report to learn more.
TaskUs (TASK)
Share Price: $16.90
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Does TASK Give Us Pause?
- Muted 1.8% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Earnings per share have dipped by 4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
TaskUs’s stock price of $16.90 implies a valuation ratio of 12.1x forward P/E. Dive into our free research report to see why there are better opportunities than TASK.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.
