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.
Flywire (FLYW)
Share Price: $12.51
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Is FLYW Not Exciting?
- High servicing costs result in a relatively inferior gross margin of 60.1% that must be offset through increased usage
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Operating margin expanded by 3.4 percentage points over the last year as it scaled and became more efficient
Flywire is trading at $12.51 per share, or 2.1x forward price-to-sales. Check out our free in-depth research report to learn more about why FLYW doesn’t pass our bar.
Pitney Bowes (PBI)
Share Price: $10.53
With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.
Why Are We Hesitant About PBI?
- Sales tumbled by 11.8% annually over the last five years, showing market trends are working against its favor during this cycle
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
At $10.53 per share, Pitney Bowes trades at 7x forward P/E. If you’re considering PBI for your portfolio, see our FREE research report to learn more.
Schneider (SNDR)
Share Price: $24.43
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE: SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Why Do We Steer Clear of SNDR?
- Muted 1.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings per share have dipped by 13.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Schneider’s stock price of $24.43 implies a valuation ratio of 28.1x forward P/E. Read our free research report to see why you should think twice about including SNDR in your portfolio.
High-Quality Stocks for All Market Conditions
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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
