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.
Mission Produce (AVO)
Share Price: $12.65
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Why Are We Cautious About AVO?
- Revenue base of $1.25 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Gross margin of 11.6% is an output of its commoditized products
- ROIC of 4.6% reflects management’s challenges in identifying attractive investment opportunities
Mission Produce is trading at $12.65 per share, or 18.8x forward P/E. Read our free research report to see why you should think twice about including AVO in your portfolio.
The Real Brokerage (REAX)
Share Price: $18.50
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Why Are We Out on REAX?
- Subpar operating margin of -0.4% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Poor free cash flow margin of 3.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
The Real Brokerage’s stock price of $18.50 implies a valuation ratio of 0.2x trailing 12-month price-to-sales. If you’re considering REAX for your portfolio, see our FREE research report to learn more.
Select Water Solutions (WTTR)
Share Price: $20.11
Managing over 24 billion barrels of produced water annually across major U.S. shale plays, Select Water Solutions (NYSE:WTTR) provides water sourcing, recycling, disposal, and treatment services for oil and gas producers.
Why Are We Wary of WTTR?
- Subscale operations are evident in its revenue base of $1.43 billion, meaning it has fewer distribution channels than its larger rivals
- Gross margin of 24.2% reflects its high production costs and unfavorable asset base
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.6% for the last five years
At $20.11 per share, Select Water Solutions trades at 33.9x forward P/E. Dive into our free research report to see why there are better opportunities than WTTR.
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.
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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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.