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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

Ruger (RGR)

Share Price: $31.60

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Why Is RGR Risky?

1. Annual revenue declines of 1.9% over the last two years indicate problems with its market positioning
2. Earnings per share fell by 21.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Waning returns on capital imply its previous profit engines are losing steam

Ruger’s stock price of $31.60 implies a valuation ratio of 15.7x forward P/E. Read our free research report to see why you should think twice about including RGR in your portfolio.

Warner Music Group (WMG)

Share Price: $30.43

Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ: WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.

Why Does WMG Give Us Pause?

1. 4.3% annual revenue growth over the last two years was slower than its consumer discretionary peers
2. Anticipated sales growth of 5% for the next year implies demand will be shaky
3. Underwhelming 14.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

Warner Music Group is trading at $30.43 per share, or 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than WMG.

Douglas Dynamics (PLOW)

Share Price: $31.36

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.

Why Are We Hesitant About PLOW?

1. Sales trends were unexciting over the last two years as its 1.8% annual growth was below the typical industrials company
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.2 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

At $31.36 per share, Douglas Dynamics trades at 13.1x forward P/E. Check out our free in-depth research report to learn more about why PLOW doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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