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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
EverQuote (EVER)
Share Price: $14.29
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Does EVER Give Us Pause?
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
EverQuote’s stock price of $14.29 implies a valuation ratio of 3.9x forward EV/EBITDA. To fully understand why you should be careful with EVER, check out our full research report (it’s free).
Edgewell Personal Care (EPC)
Share Price: $22.10
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Do We Think EPC Will Underperform?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Operating margin declined by 6.4 percentage points over the last year as its sales cratered
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $22.10 per share, Edgewell Personal Care trades at 10.3x forward P/E. Dive into our free research report to see why there are better opportunities than EPC.
Sunrun (RUN)
Share Price: $20.26
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Why Are We Wary of RUN?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Sunrun is trading at $20.26 per share, or 43.5x forward EV-to-EBITDA. To fully understand why you should be careful with RUN, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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.
