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.
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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
EverQuote (EVER)
Share Price: $24.63
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Do We Think Twice About EVER?
- Excessive marketing spend signals little organic demand and traction for its platform
EverQuote’s stock price of $24.63 implies a valuation ratio of 11.5x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EVER doesn’t pass our bar.
Renasant (RNST)
Share Price: $35.93
Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE: RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.
Why Are We Hesitant About RNST?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Net interest income trends were unexciting over the last four years as its 5% annual growth was below the typical bank company
- Projected tangible book value per share decline of 9.9% for the next 12 months points to tough credit quality challenges ahead
At $35.93 per share, Renasant trades at 0.9x forward P/B. To fully understand why you should be careful with RNST, check out our full research report (it’s free).
Eastern Bank (EBC)
Share Price: $15.27
Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.
Why Does EBC Fall Short?
- Annual sales declines of 1.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Tangible book value per share tumbled by 7.7% annually over the last four years, showing bank sector trends are working against its favor during this cycle
- Estimated tangible book value per share decline of 3.5% for the next 12 months implies a challenging profitability environment
Eastern Bank is trading at $15.27 per share, or 0.9x forward P/B. If you’re considering EBC for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 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-small-cap company Comfort Systems (+782% 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
