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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Edgewell Personal Care (EPC)
Share Price: $28.67
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Should You Sell EPC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
At $28.67 per share, Edgewell Personal Care trades at 12.3x forward P/E. Read our free research report to see why you should think twice about including EPC in your portfolio.
Elanco (ELAN)
Share Price: $24.48
Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.
Why Are We Cautious About ELAN?
- Annual revenue growth of 2% over the last five years was below our standards for the healthcare sector
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.5 percentage points
- Negative returns on capital show management lost money while trying to expand the business
Elanco’s stock price of $24.48 implies a valuation ratio of 20.9x forward P/E. Check out our free in-depth research report to learn more about why ELAN doesn’t pass our bar.
Dime Community Bancshares (DCOM)
Share Price: $40.40
With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.
Why Are We Wary of DCOM?
- Inferior net interest margin of 3% means it must compensate for lower profitability through increased loan originations
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.2% annually while its revenue grew
- Annual tangible book value per share growth of 6.5% over the last two years was below our standards for the banking sector
Dime Community Bancshares is trading at $40.40 per share, or 1.2x forward P/B. If you’re considering DCOM for your portfolio, see our FREE research report to learn more.
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
