Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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.
VF Corp (VFC)
Share Price: $20.87
Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
Why Do We Avoid VFC?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Low free cash flow margin of 4.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
VF Corp is trading at $20.87 per share, or 21.1x forward P/E. To fully understand why you should be careful with VFC, check out our full research report (it’s free).
Valley National Bank (VLY)
Share Price: $13.13
Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.
Why Do We Pass on VLY?
- 3.7% annual revenue growth over the last two years was slower than its banking peers
- Muted 9.5% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
At $13.13 per share, Valley National Bank trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than VLY.
Forestar Group (FOR)
Share Price: $29.64
As a majority-owned subsidiary of homebuilding giant D.R. Horton, Forestar Group (NYSE: FOR) develops and sells finished residential lots to homebuilders, focusing primarily on land acquisition and development for single-family homes.
Why Are We Out on FOR?
- Average unit sales growth of -26.8% over the past two years reflects steady demand for its products
- Cash-burning history makes us doubt the long-term viability of its business model
- Stagnant returns on capital show management has failed to improve the company’s business quality
Forestar Group’s stock price of $29.64 implies a valuation ratio of 9.8x forward P/E. If you’re considering FOR for your portfolio, see our FREE research report to learn more.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
