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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Edgewell Personal Care (EPC)
Share Price: $23.25
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Should You Sell EPC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 8.3 percentage points
- Underwhelming 6.2% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $23.25 per share, Edgewell Personal Care trades at 7x forward P/E. Read our free research report to see why you should think twice about including EPC in your portfolio.
The Pennant Group (PNTG)
Share Price: $29.80
Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ: PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.
Why Does PNTG Worry Us?
- Subscale operations are evident in its revenue base of $748.2 million, meaning it has fewer distribution channels than its larger rivals
- 5.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
The Pennant Group’s stock price of $29.80 implies a valuation ratio of 26.3x forward P/E. Check out our free in-depth research report to learn more about why PNTG doesn’t pass our bar.
WaFd Bank (WAFD)
Share Price: $29.32
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ: WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
Why Should You Dump WAFD?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 97.3 basis points (100 basis points = 1 percentage point)
- Sales over the last two years were less profitable as its earnings per share fell by 18.6% annually while its revenue was flat
WaFd Bank is trading at $29.32 per share, or 0.8x forward P/B. If you’re considering WAFD 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 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-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
