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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
C3.ai (AI)
Share Price: $16.45
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE: AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
Why Are We Out on AI?
- Annual revenue growth of 15.5% over the last three years was below our standards for the software sector
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Persistent operating margin losses suggest the business manages its expenses poorly
At $16.45 per share, C3.ai trades at 5x forward price-to-sales. Read our free research report to see why you should think twice about including AI in your portfolio.
Levi's (LEVI)
Share Price: $20.34
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Why Do We Avoid LEVI?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Projected sales growth of 2.6% for the next 12 months suggests sluggish demand
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Levi’s stock price of $20.34 implies a valuation ratio of 15.9x forward P/E. If you’re considering LEVI for your portfolio, see our FREE research report to learn more.
Acadia Healthcare (ACHC)
Share Price: $19.50
With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.
Why Do We Think Twice About ACHC?
- Weak admissions over the past two years suggest it might have to lower prices to accelerate growth
- Free cash flow margin shrank by 24.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Acadia Healthcare is trading at $19.50 per share, or 6.9x forward P/E. Check out our free in-depth research report to learn more about why ACHC doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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