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.
Kimball Electronics (KE)
Share Price: $29.22
Founded in 1961, Kimball Electronics (NYSE: KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.
Why Do We Think KE Will Underperform?
- Annual sales declines of 9.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 8.1% reflects its high production costs
- Earnings per share have contracted by 29.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $29.22 per share, Kimball Electronics trades at 28.5x forward P/E. Dive into our free research report to see why there are better opportunities than KE.
AT&T (T)
Share Price: $28.87
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Should You Dump T?
- Products and services have few die-hard fans as sales have declined by 6.7% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 9% annually, worse than its revenue declines
- Free cash flow margin is forecasted to shrink by 2.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
AT&T’s stock price of $28.87 implies a valuation ratio of 13.2x forward P/E. If you’re considering T for your portfolio, see our FREE research report to learn more.
STAAR Surgical (STAA)
Share Price: $27.55
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Should You Sell STAA?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 35.2 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
STAAR Surgical is trading at $27.55 per share, or 116.6x forward P/E. Read our free research report to see why you should think twice about including STAA in your portfolio.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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