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.
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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
C3.ai (AI)
Share Price: $11.12
Named after the three Cs of its original focus—carbon, cloud computing, and customer relationship management—C3.ai (NYSE: AI) provides enterprise AI software that helps organizations develop, deploy, and operate large-scale artificial intelligence applications across various industries.
Why Do We Avoid AI?
- Offerings struggled to generate meaningful interest as its average billings growth of 3.8% over the last year did not impress
- Gross margin of 51.8% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $11.12 per share, C3.ai trades at 4.7x forward price-to-sales. Check out our free in-depth research report to learn more about why AI doesn’t pass our bar.
Rush Street Interactive (RSI)
Share Price: $17.45
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Do We Pass on RSI?
- Sluggish trends in its monthly active users suggest customers aren’t adopting its solutions as quickly as the company hoped
- Poor expense management has led to an operating margin of 4.1% that is below the industry average
- Free cash flow margin is projected to show no improvement next year
Rush Street Interactive is trading at $17.45 per share, or 33x forward P/E. To fully understand why you should be careful with RSI, check out our full research report (it’s free).
Amphastar Pharmaceuticals (AMPH)
Share Price: $28.49
Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ: AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.
Why Are We Cautious About AMPH?
- Subscale operations are evident in its revenue base of $723.3 million, meaning it has fewer distribution channels than its larger rivals
- Day-to-day expenses have swelled relative to revenue over the last two years as its adjusted operating margin fell by 4.3 percentage points
Amphastar Pharmaceuticals’s stock price of $28.49 implies a valuation ratio of 8x forward P/E. If you’re considering AMPH for your portfolio, see our FREE research report to learn more.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
