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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Papa John's (PZZA)
Share Price: $34.50
Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ:PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.
Why Is PZZA Risky?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Sales are projected to tank by 5.5% over the next 12 months as demand evaporates
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 2.9 percentage points
Papa John's is trading at $34.50 per share, or 20.7x forward P/E. To fully understand why you should be careful with PZZA, check out our full research report (it’s free).
WesBanco (WSBC)
Share Price: $34.69
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ:WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Are We Cautious About WSBC?
- Inferior net interest margin of 3.4% means it must compensate for lower profitability through increased loan originations
- Flat tangible book value per share over the last five years suggests it must find different ways to enhance shareholder value during this cycle
- ROE of 6.8% reflects management’s challenges in identifying attractive investment opportunities
WesBanco’s stock price of $34.69 implies a valuation ratio of 0.8x forward P/B. Check out our free in-depth research report to learn more about why WSBC doesn’t pass our bar.
Tenaris (TEN)
Share Price: $37.13
Operating industrial facilities across the Americas, Europe, Middle East, and Asia, Tenaris (NYSE:TEN) manufactures seamless and welded steel pipes used in oil and gas drilling and transportation.
Why Are We Hesitant About TEN?
- Muted 7.2% annual revenue growth over the last five years shows its demand lagged behind its energy upstream and integrated energy peers
- Modest revenue base of $854.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
At $37.13 per share, Tenaris trades at 1.4x trailing 12-month price-to-sales. Read our free research report to see why you should think twice about including TEN in your portfolio.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.