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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Sinclair (SBGI)
Share Price: $15.09
With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ: SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.
Why Should You Sell SBGI?
- Sales tumbled by 11.2% annually over the last five years, showing market trends are working against its favor during this cycle
- Eroding returns on capital suggest its historical profit centers are aging
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $15.09 per share, Sinclair trades at 8.7x forward EV-to-EBITDA. To fully understand why you should be careful with SBGI, check out our full research report (it’s free).
Ford (F)
Share Price: $13.82
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Why Is F Risky?
- Flat vehicles sold over the past two years suggest it might have to lower prices to accelerate growth
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually
- 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Ford’s stock price of $13.82 implies a valuation ratio of 11.2x forward P/E. Read our free research report to see why you should think twice about including F in your portfolio.
Garrett Motion (GTX)
Share Price: $19.22
A key player in the transition to cleaner vehicles, Garrett Motion (NYSE: GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.
Why Are We Cautious About GTX?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4% annually over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Earnings per share fell by 12.7% annually over the last five years while its revenue grew, partly because it diluted shareholders
Garrett Motion is trading at $19.22 per share, or 11.2x forward P/E. Dive into our free research report to see why there are better opportunities than GTX.
Stocks We Like More
Check out the high-quality names we’ve flagged in 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.
