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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

Simply Good Foods (SMPL)

Share Price: $11.50

Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ: SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.

Why Are We Out on SMPL?

1. Annual revenue growth of 6% over the last three years was below our standards for the consumer staples sector
2. Forecasted revenue decline of 5.4% for the upcoming 12 months implies demand will fall off a cliff
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 24.4 percentage points

Simply Good Foods’s stock price of $11.50 implies a valuation ratio of 7.1x forward P/E. Dive into our free research report to see why there are better opportunities than SMPL.

Werner (WERN)

Share Price: $43.02

Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Why Should You Dump WERN?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.3% annually over the last two years
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 44.6% annually
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $43.02 per share, Werner trades at 36.9x forward P/E. Read our free research report to see why you should think twice about including WERN in your portfolio.

Envista (NVST)

Share Price: $22.41

Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.

Why Do We Pass on NVST?

1. Annual revenue growth of 4.7% over the last two years was below our standards for the healthcare sector
2. Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Envista is trading at $22.41 per share, or 16x forward P/E. To fully understand why you should be careful with NVST, check out our full research report (it’s free).

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.