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.
Werner (WERN)
Share Price: $23.40
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Why Should You Sell WERN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.1% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 55.8% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Werner’s stock price of $23.40 implies a valuation ratio of 38.6x forward P/E. Read our free research report to see why you should think twice about including WERN in your portfolio.
Ingram Micro (INGM)
Share Price: $20.29
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Why Does INGM Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.2% over the last five years was below our standards for the business services sector
- Earnings per share fell by 7.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.1% for the last five years
Ingram Micro is trading at $20.29 per share, or 6.3x forward P/E. Check out our free in-depth research report to learn more about why INGM doesn’t pass our bar.
ManpowerGroup (MAN)
Share Price: $27.10
Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.
Why Do We Think MAN Will Underperform?
- 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 fell by 18.4% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $27.10 per share, ManpowerGroup trades at 8.2x forward P/E. Dive into our free research report to see why there are better opportunities than MAN.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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-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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
