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.
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.
Cars.com (CARS)
Share Price: $11.60
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE: CARS) is a digital marketplace that connects new and used car buyers and sellers.
Why Are We Wary of CARS?
- Likely needs to improve its platform or increase its marketing budget for penetration to accelerate as its dealer customers were flat over the last two years
- Anticipated sales growth of 2.4% for the next year implies demand will be shaky
- Earnings per share have contracted by 2% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
At $11.60 per share, Cars.com trades at 5.2x forward EV/EBITDA. If you’re considering CARS for your portfolio, see our FREE research report to learn more.
Horace Mann Educators (HMN)
Share Price: $42.53
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Should You Sell HMN?
- Growth in insurance policies was lackluster over the last five years as its 5.3% annual growth underperformed the typical financial institution
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 3.2% annually over the last five years
- Low return on equity reflects management’s struggle to allocate funds effectively
Horace Mann Educators’s stock price of $42.53 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why HMN doesn’t pass our bar.
FirstSun Capital Bancorp (FSUN)
Share Price: $38.16
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Are We Cautious About FSUN?
- Muted 3.7% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 23.3 basis points (100 basis points = 1 percentage point)
- Estimated tangible book value per share decline of 4% for the next 12 months implies a challenging profitability environment
FirstSun Capital Bancorp is trading at $38.16 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than FSUN.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
