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.

Wolverine Worldwide (WWW)

Share Price: $19.40

Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.

Why Do We Steer Clear of WWW?

1. Products and services have few die-hard fans as sales have declined by 4.1% annually over the last five years
2. Sales were less profitable over the last five years as its earnings per share fell by 10.5% annually, worse than its revenue declines
3. Negative returns on capital show management lost money while trying to expand the business

Wolverine Worldwide’s stock price of $19.40 implies a valuation ratio of 17.5x forward P/E. Check out our free in-depth research report to learn more about why WWW doesn’t pass our bar.

Sealed Air (SEE)

Share Price: $31.75

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Why Are We Out on SEE?

1. Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 7.5% annually, worse than its revenue
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $31.75 per share, Sealed Air trades at 10.5x forward P/E. Read our free research report to see why you should think twice about including SEE in your portfolio.

Telephone and Data Systems (TDS)

Share Price: $39.55

Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE: TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.

Why Do We Avoid TDS?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
2. Earnings per share have dipped by 25.4% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. High net-debt-to-EBITDA ratio of 26× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Telephone and Data Systems is trading at $39.55 per share, or 3.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TDS.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our 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-micro-cap company Kadant (+351% 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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