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.
Cars.com (CARS)
Share Price: $10.30
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE: CARS) is a digital marketplace that connects new and used car buyers and sellers.
Why Are We Wary of CARS?
- Market opportunities are plateauing as its dealer customers were flat over the last two years
- Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its three-year trend
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 1.9% annually
At $10.30 per share, Cars.com trades at 3x forward EV/EBITDA. Read our free research report to see why you should think twice about including CARS in your portfolio.
Enovis (ENOV)
Share Price: $31.90
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Are We Out on ENOV?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.1% annually over the last five years
- Negative returns on capital show management lost money while trying to expand the business, and its decreasing returns suggest its historical profit centers are aging
Enovis’s stock price of $31.90 implies a valuation ratio of 9.7x forward P/E. To fully understand why you should be careful with ENOV, check out our full research report (it’s free).
Stellar Bancorp (STEL)
Share Price: $26.89
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Why Does STEL Give Us Pause?
- Estimated net interest income growth of 2.3% for the next 12 months implies demand will slow from its four-year trend
- Earnings per share have dipped by 14.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Tangible book value per share tumbled by 2.8% annually over the last five years, showing banking sector trends are working against its favor during this cycle
Stellar Bancorp is trading at $26.89 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than STEL.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
