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.
Varonis Systems (VRNS)
Share Price: $33.97
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Why Is VRNS Not Exciting?
- Annual revenue growth of 11.7% over the last two years was below our standards for the software sector
- Efficiency has decreased over the last year as its operating margin fell by 2.7 percentage points
- Projected 2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $33.97 per share, Varonis Systems trades at 5.8x forward price-to-sales. If you’re considering VRNS for your portfolio, see our FREE research report to learn more.
Verizon (VZ)
Share Price: $39.43
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.
Why Do We Pass on VZ?
- Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin is forecasted to shrink by 1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Verizon is trading at $39.43 per share, or 8.4x forward P/E. To fully understand why you should be careful with VZ, check out our full research report (it’s free).
Avantor (AVTR)
Share Price: $12.10
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Why Are We Wary of AVTR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Avantor’s stock price of $12.10 implies a valuation ratio of 14x forward P/E. Check out our free in-depth research report to learn more about why AVTR doesn’t pass our bar.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
