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.
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.
VF Corp (VFC)
Share Price: $18.77
Owner of The North Face, Vans, and Supreme, VF Corp (NYSE:VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
Why Do We Pass on VFC?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $18.77 per share, VF Corp trades at 21.6x forward P/E. If you’re considering VFC for your portfolio, see our FREE research report to learn more.
Brookdale (BKD)
Share Price: $10.61
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Are We Cautious About BKD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last five years
- Sales are projected to tank by 6.1% over the next 12 months as demand evaporates
- 12× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Brookdale is trading at $10.61 per share, or 5.5x forward EV-to-EBITDA. To fully understand why you should be careful with BKD, check out our full research report (it’s free for active Edge members).
Stellar Bancorp (STEL)
Share Price: $31.89
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Why Should You Sell STEL?
- Sales tumbled by 5.7% annually over the last two years, showing market trends are working against its favor during this cycle
- 36 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.6% annually, worse than its revenue
Stellar Bancorp’s stock price of $31.89 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including STEL in your portfolio.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 (+1,326% between June 2020 and June 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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