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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Stratasys (SSYS)
Share Price: $10.97
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Should You Sell SSYS?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.6% annually over the last two years
- Historical operating margin losses point to an inefficient cost structure
- Free cash flow margin shrank by 6.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $10.97 per share, Stratasys trades at 56.7x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.
Bausch + Lomb (BLCO)
Share Price: $16.89
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Do We Think Twice About BLCO?
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 20.4% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 26.8 percentage points
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Bausch + Lomb’s stock price of $16.89 implies a valuation ratio of 20.5x forward P/E. If you’re considering BLCO for your portfolio, see our FREE research report to learn more.
Brookdale (BKD)
Share Price: $12.97
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Does BKD Fall Short?
- Sales tumbled by 2.6% annually over the last five years, showing market trends are working against its favor during this cycle
- Forecasted revenue decline of 6.1% for the upcoming 12 months implies demand will fall off a cliff
- 12× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Brookdale is trading at $12.97 per share, or 17.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including BKD in your portfolio.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
