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. 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: $23.77
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE: AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
Why Does AI Worry Us?
- 16.4% annual revenue growth over the last three years was slower than its software peers
- Gross margin of 59.9% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
C3.ai is trading at $23.77 per share, or 7.2x forward price-to-sales. If you’re considering AI for your portfolio, see our FREE research report to learn more.
UiPath (PATH)
Share Price: $12.68
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE: PATH) makes software that helps companies automate repetitive computer tasks.
Why Does PATH Give Us Pause?
- Products, pricing, or go-to-market strategy may need some adjustments as its 5.7% average billings growth over the last year was weak
- Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its three-year trend
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
At $12.68 per share, UiPath trades at 4.7x forward price-to-sales. To fully understand why you should be careful with PATH, check out our full research report (it’s free).
Movado (MOV)
Share Price: $17.35
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Is MOV Risky?
- Annual sales declines of 1.4% for the past five years show its products and services struggled to connect with the market
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Movado’s stock price of $17.35 implies a valuation ratio of 0.6x forward price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn’t pass our bar.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our 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 176% over the last five years.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
