The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
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.
Robert Half (RHI)
Share Price: $40.88
With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.
Why Are We Out on RHI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 11.9% annually, worse than its revenue declines
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Robert Half’s stock price of $40.88 implies a valuation ratio of 15.4x forward P/E. To fully understand why you should be careful with RHI, check out our full research report (it’s free).
Fulton Financial (FULT)
Share Price: $18.08
Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.
Why Is FULT Not Exciting?
- Estimated net interest income growth of 3.1% for the next 12 months implies demand will slow from its four-year trend
- Capital trends were unexciting over the last five years as its 4.4% annual tangible book value per share growth was below the typical bank company
- Estimated tangible book value per share growth of 7.3% for the next 12 months implies profitability will slow from its two-year trend
Fulton Financial is trading at $18.08 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including FULT in your portfolio.
Fifth Third Bancorp (FITB)
Share Price: $41.51
Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.
Why Does FITB Worry Us?
- 4.7% annual net interest income growth over the last four years was slower than its bank peers
- Inferior net interest margin of 3% means it must compensate for lower profitability through increased loan originations
- Tangible book value per share tumbled by 2% annually over the last five years, showing bank sector trends are working against its favor during this cycle
At $41.51 per share, Fifth Third Bancorp trades at 1.4x forward P/B. Check out our free in-depth research report to learn more about why FITB doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% 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
