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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
C3.ai (AI)
Share Price: $13.75
Named after the three Cs of its original focus—carbon, cloud computing, and customer relationship management—C3.ai (NYSE: AI) provides enterprise AI software that helps organizations develop, deploy, and operate large-scale artificial intelligence applications across various industries.
Why Do We Steer Clear of AI?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 12.4% underwhelmed
- Gross margin of 56.5% reflects its high servicing costs
- Negative free cash flow raises questions about the return timeline for its investments
At $13.75 per share, C3.ai trades at 5.6x forward price-to-sales. Read our free research report to see why you should think twice about including AI in your portfolio.
Hillenbrand (HI)
Share Price: $31.67
Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.
Why Should You Sell HI?
- Sales tumbled by 2.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 16.4 percentage points
Hillenbrand’s stock price of $31.67 implies a valuation ratio of 12.3x forward P/E. Dive into our free research report to see why there are better opportunities than HI.
Invesco (IVZ)
Share Price: $23.20
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Do We Think IVZ Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.4% annually over the last five years
- Earnings per share were flat over the last five years and fell short of the peer group average
- Underwhelming 5.8% return on equity reflects management’s difficulties in finding profitable growth opportunities
Invesco is trading at $23.20 per share, or 9.5x forward P/E. To fully understand why you should be careful with IVZ, check out our full research report (it’s free for active Edge members).
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 9 Market-Beating Stocks. 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 (+1,326% 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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