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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Couchbase (BASE)
Share Price: $24.48
Named after its fusion of Apache CouchDB and Membase technologies, Couchbase (NASDAQ: BASE) provides a modern cloud database platform that combines the reliability of traditional relational databases with the flexibility and scalability of NoSQL systems.
Why Is BASE Risky?
- Products, pricing, or go-to-market strategy may need some adjustments as its 6.6% average billings growth over the last year was weak
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Cash burn makes us question whether it can achieve sustainable long-term growth
Couchbase is trading at $24.48 per share, or 5.5x forward price-to-sales. If you’re considering BASE for your portfolio, see our FREE research report to learn more.
National Vision (EYE)
Share Price: $26.95
Operating under multiple brands, National Vision (NYSE: EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.
Why Does EYE Worry Us?
- Recent store closures reflect a shift toward streamlining existing locations to maximize efficiency
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
At $26.95 per share, National Vision trades at 33x forward P/E. Read our free research report to see why you should think twice about including EYE in your portfolio.
Lucid (LCID)
Share Price: $20.70
Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Why Are We Wary of LCID?
- Negative 155% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Negative free cash flow raises questions about the return timeline for its investments
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Lucid’s stock price of $20.70 implies a valuation ratio of 31.8x forward price-to-sales. To fully understand why you should be careful with LCID, 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 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
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