Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
YETI (YETI)
Share Price: $36.62
Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Do We Think Twice About YETI?
- Annual revenue growth of 6.3% over the last two years was below our standards for the consumer discretionary sector
- Projected 6.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
YETI’s stock price of $36.62 implies a valuation ratio of 16.9x forward P/E. To fully understand why you should be careful with YETI, check out our full research report (it’s free).
Werner (WERN)
Share Price: $28.45
Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Why Do We Pass on WERN?
- Annual sales declines of 5.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 37.2% annually while its revenue grew
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $28.45 per share, Werner trades at 36.4x forward P/E. If you’re considering WERN for your portfolio, see our FREE research report to learn more.
Premier (PINC)
Share Price: $27
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Why Should You Dump PINC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 12.9% annually over the last two years
- Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its adjusted operating margin
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
Premier is trading at $27 per share, or 19.3x forward P/E. Check out our free in-depth research report to learn more about why PINC doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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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