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.
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.
Five9 (FIVN)
Share Price: $33.72
Taking its name from the "five nines" (99.999%) standard for optimal service reliability in telecommunications, Five9 (NASDAQ:FIVN) provides cloud-based software that enables businesses to run their contact centers with tools for customer service, sales, and marketing across multiple communication channels.
Why Should You Sell FIVN?
- Average billings growth of 9.1% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Anticipated sales growth of 10.5% for the next year implies demand will be shaky
- Gross margin of 54.9% is way below its competitors, leaving less money to invest in areas like marketing and R&D
Five9’s stock price of $33.72 implies a valuation ratio of 2.2x forward price-to-sales. If you’re considering FIVN for your portfolio, see our FREE research report to learn more.
Enphase (ENPH)
Share Price: $35.55
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ:ENPH) manufactures software-driven home energy products.
Why Do We Steer Clear of ENPH?
- Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 15.4 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $35.55 per share, Enphase trades at 17.8x forward P/E. Read our free research report to see why you should think twice about including ENPH in your portfolio.
Old Republic International (ORI)
Share Price: $42.32
Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE:ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.
Why Are We Out on ORI?
- Annual revenue growth of 1.6% over the last five years was below our standards for the insurance sector
- Growth in insurance policies was lackluster over the last five years as its 2.7% annual growth underperformed the typical financial institution
- Performance over the past two years shows its incremental sales were less profitable, as its 2.1% annual earnings per share growth trailed its revenue gains
Old Republic International is trading at $42.32 per share, or 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than ORI.
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.