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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
MGIC Investment (MTG)
Share Price: $30.04
Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.
Why Do We Avoid MTG?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 1.5% annually over the last five years
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Earnings per share lagged its peers over the last two years as they only grew by 8.4% annually
MGIC Investment is trading at $30.04 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why MTG doesn’t pass our bar.
Hilltop Holdings (HTH)
Share Price: $39.44
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Why Are We Bearish on HTH?
- Net interest income trends were unexciting over the last five years as its 1.4% annual growth was below the typical banking firm
- Efficiency ratio is expected to worsen by 30.4 percentage points over the next year
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 13.8% annually, worse than its revenue
At $39.44 per share, Hilltop Holdings trades at 1x forward P/B. If you’re considering HTH for your portfolio, see our FREE research report to learn more.
First Busey (BUSE)
Share Price: $30.86
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ:BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Are We Wary of BUSE?
- Inferior net interest margin of 3.5% means it must compensate for lower profitability through increased loan originations
- Performance over the past five years shows its incremental sales were less profitable, as its 1.6% annual earnings per share growth trailed its revenue gains
- Tangible book value per share is projected to decrease by 4.8% over the next 12 months as capital generation weakens
First Busey’s stock price of $30.86 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including BUSE in your portfolio.
Stocks We Like More
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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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.