Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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.
Chewy (CHWY)
Share Price: $18.62
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Are We Cautious About CHWY?
- The company has faced growth challenges as its 6.5% annual revenue increases over the last three years fell short of other consumer internet companies
- Projected sales growth of 7% for the next 12 months suggests sluggish demand
- Gross margin of 29.7% is below its competitors, leaving less money to invest in areas like marketing and R&D
Chewy’s stock price of $18.62 implies a valuation ratio of 8.8x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHWY in your portfolio.
Carnival (CCL)
Share Price: $21.82
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Why Is CCL Risky?
- Performance surrounding its passenger cruise days has lagged its peers
- Free cash flow margin is projected to show no improvement next year
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $21.82 per share, Carnival trades at 9.8x forward P/E. Check out our free in-depth research report to learn more about why CCL doesn’t pass our bar.
Northwest Bancshares (NWBI)
Share Price: $15.05
Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ:NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.
Why Does NWBI Give Us Pause?
- Net interest income trends were unexciting over the last five years as its 7.1% annual growth was below the typical banking firm
- Performance over the past five years shows its incremental sales were less profitable, as its 2.8% annual earnings per share growth trailed its revenue gains
- Muted 1.4% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its banking peers
Northwest Bancshares is trading at $15.05 per share, or 1.1x forward P/B. To fully understand why you should be careful with NWBI, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.