Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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.
Flowers Foods (FLO)
Share Price: $15.09
With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Why Are We Cautious About FLO?
- Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Operating margin of 5.6% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Earnings per share have dipped by 1.4% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Flowers Foods is trading at $15.09 per share, or 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than FLO.
Edgewell Personal Care (EPC)
Share Price: $24.02
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
- Performance over the past three years shows each sale was less profitable, as its earnings per share fell by 2.6% annually
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 4.9 percentage points
At $24.02 per share, Edgewell Personal Care trades at 7.5x forward P/E. If you’re considering EPC for your portfolio, see our FREE research report to learn more.
Renasant (RNST)
Share Price: $39.13
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 Does RNST Worry Us?
- Net interest margin of 3.4% reflects its high servicing and capital costs
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 8.6% annually while its revenue grew
- 4.2% annual tangible book value per share growth over the last two years was slower than its banking peers
Renasant’s stock price of $39.13 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with RNST, check out our full research report (it’s free).
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 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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