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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Dropbox (DBX)
Share Price: $26.90
Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ: DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.
Why Does DBX Fall Short?
- Offerings struggled to generate interest as its billings were flat over the last year
- Projected sales decline of 2.2% for the next 12 months points to a tough demand environment ahead
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4 percentage points
Dropbox is trading at $26.90 per share, or 3x forward price-to-sales. If you’re considering DBX for your portfolio, see our FREE research report to learn more.
Gap (GAP)
Share Price: $19.82
Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.
Why Is GAP Not Exciting?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.3%
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $19.82 per share, Gap trades at 8.4x forward P/E. Read our free research report to see why you should think twice about including GAP in your portfolio.
National Bank Holdings (NBHC)
Share Price: $36.54
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
Why Do We Think Twice About NBHC?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 24 basis points (100 basis points = 1 percentage point)
- Projected 4.8 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
National Bank Holdings’s stock price of $36.54 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with NBHC, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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 Exlservice (+354% 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
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