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.
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.
Energizer (ENR)
Share Price: $22.26
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Do We Think ENR Will Underperform?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Energizer’s stock price of $22.26 implies a valuation ratio of 6.4x forward P/E. If you’re considering ENR for your portfolio, see our FREE research report to learn more.
Laureate Education (LAUR)
Share Price: $38.66
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.
Why Do We Pass on LAUR?
- Performance surrounding its enrolled students has lagged its peers
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.7 percentage points
- Underwhelming 18.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
Laureate Education is trading at $38.66 per share, or 17x forward P/E. Read our free research report to see why you should think twice about including LAUR in your portfolio.
MasterCraft (MCFT)
Share Price: $20.07
Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.
Why Are We Out on MCFT?
- Annual sales declines of 7.9% for the past five years show its products and services struggled to connect with the market
- Free cash flow margin is projected to show no improvement next year
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $20.07 per share, MasterCraft trades at 10.2x forward P/E. To fully understand why you should be careful with MCFT, check out our full research report (it’s free).
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
