Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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.
Beyond Meat (BYND)
Share Price: $9.23
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company specializing in alternatives to traditional meat products.
Why Are We Out on BYND?
- Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $9.23 per share, Beyond Meat trades at 0.8x trailing 12-month price-to-sales. Read our free research report to see why you should think twice about including BYND in your portfolio.
Oxford Industries (OXM)
Share Price: $26.46
The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Why Do We Avoid OXM?
- 8.2% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Oxford Industries is trading at $26.46 per share, or 11.7x forward P/E. Dive into our free research report to see why there are better opportunities than OXM.
Covenant Logistics (CVLG)
Share Price: $33.20
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Why Do We Steer Clear of CVLG?
- Sales trends were unexciting over the last two years as its 4.5% annual growth was below the typical industrials company
- Earnings per share fell by 16.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Covenant Logistics’s stock price of $33.20 implies a valuation ratio of 15.4x forward P/E. If you’re considering CVLG for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.