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.
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.
Amplitude (AMPL)
Share Price: $12.10
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ: AMPL) is data analytics software helping companies improve and optimize their digital products.
Why Are We Cautious About AMPL?
- Average billings growth of 8.7% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.2% for the last year
Amplitude’s stock price of $12.10 implies a valuation ratio of 4.7x forward price-to-sales. If you’re considering AMPL for your portfolio, see our FREE research report to learn more.
DXC (DXC)
Share Price: $15.86
Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.
Why Is DXC Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have contracted by 9.2% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- ROIC of 1.4% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $15.86 per share, DXC trades at 4.6x forward P/E. Check out our free in-depth research report to learn more about why DXC doesn’t pass our bar.
Simmons First National (SFNC)
Share Price: $18.99
With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.
Why Are We Out on SFNC?
- Flat net interest income over the last four years suggest it must find different ways to grow during this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 13.9% annually, worse than its revenue
- High interest payments compared to its earnings raise concerns about its ability to service its debt consistently
Simmons First National is trading at $18.99 per share, or 0.7x forward P/B. Read our free research report to see why you should think twice about including SFNC in your portfolio.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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.
