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.
Portillo's (PTLO)
Share Price: $11.60
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Why Does PTLO Fall Short?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $11.60 per share, Portillo's trades at 31.5x forward P/E. To fully understand why you should be careful with PTLO, check out our full research report (it’s free).
Warner Music Group (WMG)
Share Price: $26.58
Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ: WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Why Do We Think Twice About WMG?
- Lackluster 4.4% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Projected sales growth of 3.7% for the next 12 months suggests sluggish demand
- Underwhelming 10.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
Warner Music Group is trading at $26.58 per share, or 9.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WMG doesn’t pass our bar.
Interface (TILE)
Share Price: $20.23
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Do We Avoid TILE?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 3.5% annually
- Underwhelming 10.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
Interface’s stock price of $20.23 implies a valuation ratio of 7.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TILE.
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 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
