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.

Genesco (GCO)

Share Price: $21.71

Spanning a broad range of styles, brands, and prices, Genesco (NYSE: GCO) sells footwear, apparel, and accessories through multiple brands and banners.

Why Should You Sell GCO?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
2. Earnings per share fell by 19.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Genesco is trading at $21.71 per share, or 0.1x forward price-to-sales. Read our free research report to see why you should think twice about including GCO in your portfolio.

Camping World (CWH)

Share Price: $17.47

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Why Does CWH Fall Short?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Camping World’s stock price of $17.47 implies a valuation ratio of 17.8x forward P/E. Check out our free in-depth research report to learn more about why CWH doesn’t pass our bar.

Quanex (NX)

Share Price: $17.32

Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Why Are We Cautious About NX?

1. Efficiency has decreased over the last five years as its operating margin fell by 4.6 percentage points
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 6.8% annually
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.7 percentage points

At $17.32 per share, Quanex trades at 6.7x forward P/E. If you’re considering NX for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 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.