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.
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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Appian (APPN)
Share Price: $38.04
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ:APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Does APPN Give Us Pause?
- Estimated sales growth of 12.2% for the next 12 months implies demand will slow from its two-year trend
- 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
Appian is trading at $38.04 per share, or 3.1x forward price-to-sales. To fully understand why you should be careful with APPN, check out our full research report (it’s free).
Hilton Grand Vacations (HGV)
Share Price: $35.97
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Why Should You Sell HGV?
- Demand for its offerings was relatively low as its number of members has underwhelmed
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Hilton Grand Vacations’s stock price of $35.97 implies a valuation ratio of 6.9x forward P/E. Read our free research report to see why you should think twice about including HGV in your portfolio.
Onterris (ONT)
Share Price: $17.44
Founded to protect a tree-lined two-lane road, Onterris (NYSE:ONT) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Does ONT Worry Us?
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Push for growth has led to negative returns on capital, signaling value destruction
At $17.44 per share, Onterris trades at 12.6x forward P/E. Check out our free in-depth research report to learn more about why ONT doesn’t pass our bar.
Stocks We Like More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.