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.

Utz (UTZ)

Share Price: $13.45

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE: UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

Why Should You Sell UTZ?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Modest revenue base of $1.43 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Utz’s stock price of $13.45 implies a valuation ratio of 14.7x forward P/E. Check out our free in-depth research report to learn more about why UTZ doesn’t pass our bar.

First Horizon (FHN)

Share Price: $22.69

Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE: FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.

Why Does FHN Fall Short?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.3% annually over the last two years
2. Estimated net interest income growth of 3.4% for the next 12 months implies demand will slow from its five-year trend
3. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 20.3 basis points (100 basis points = 1 percentage point)

First Horizon is trading at $22.69 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including FHN in your portfolio.

Banc of California (BANC)

Share Price: $16.60

Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE: BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.

Why Do We Think Twice About BANC?

1. Annual net interest income declines of 1.3% for the past five years show its loan book struggled during this cycle
2. Tangible book value per share tumbled by 3.9% annually over the last five years, showing banking sector trends are working against its favor during this cycle
3. Negative return on equity shows that some of its growth strategies have backfired

At $16.60 per share, Banc of California trades at 0.8x forward P/B. To fully understand why you should be careful with BANC, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% 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

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