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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Zeta (ZETA)
Share Price: $13.15
Co-founded by former Apple CEO John Sculley, Zeta Global (NYSE: ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Why Do We Think Twice About ZETA?
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 60.4%
- Operating losses show it sacrificed profitability while scaling the business
- Poor free cash flow margin of 9.8% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Zeta’s stock price of $13.15 implies a valuation ratio of 2.2x forward price-to-sales. Check out our free in-depth research report to learn more about why ZETA doesn’t pass our bar.
AT&T (T)
Share Price: $27.73
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Should You Sell T?
- Annual revenue declines of 7.3% over the last five years indicate problems with its market positioning
- Sales were less profitable over the last five years as its earnings per share fell by 9% annually, worse than its revenue declines
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $27.73 per share, AT&T trades at 13.3x forward P/E. Dive into our free research report to see why there are better opportunities than T.
Amentum (AMTM)
Share Price: $20.60
With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.
Why Are We Hesitant About AMTM?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.4% over the last three years was below our standards for the business services sector
- Estimated sales growth of 1.2% for the next 12 months implies demand will slow from its two-year trend
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.6% for the last four years
Amentum is trading at $20.60 per share, or 9.4x forward P/E. If you’re considering AMTM for your portfolio, see our FREE research report to learn more.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
