3 Stocks Under $50 We Keep Off Our Radar

October 02, 2025 at 00:33 AM EDT

RVLV Cover Image

The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

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.

Revolve (RVLV)

Share Price: $20.90

Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ: RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.

Why Do We Avoid RVLV?

May need to improve its platform and marketing strategy as its 6.5% average growth in active customers underwhelmed
Demand has fallen off a cliff over the last two years as its average revenue per buyer fell by 1.5% annually while it struggled to expand its customer base
Earnings per share have contracted by 18% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Revolve is trading at $20.90 per share, or 28.6x forward EV/EBITDA. To fully understand why you should be careful with RVLV, check out our full research report (it’s free).

Bath and Body Works (BBWI)

Share Price: $25.80

Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.

Why Do We Think Twice About BBWI?

Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its six-year trend
Earnings growth underperformed the sector average over the last six years as its EPS grew by just 8.5% annually

At $25.80 per share, Bath and Body Works trades at 7.2x forward P/E. Read our free research report to see why you should think twice about including BBWI in your portfolio.

First Merchants (FRME)

Share Price: $38.34

Dating back to 1893 when it first opened its doors in Indiana, First Merchants (NASDAQ: FRME) is a Midwest regional bank providing commercial, consumer, and wealth management services through branches in Indiana, Ohio, Michigan, and Illinois.

Why Are We Hesitant About FRME?

Sales were flat over the last two years, indicating it’s failed to expand this cycle
7.1% annual net interest income growth over the last five years was slower than its banking peers
Net interest margin dropped by 27.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

First Merchants’s stock price of $38.34 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why FRME doesn’t pass our bar.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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-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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