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.
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.
Herbalife (HLF)
Share Price: $16.52
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Are We Wary of HLF?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Estimated sales growth of 3.7% for the next 12 months is soft and implies weaker demand
- Issuance of new shares over the last three years caused its earnings per share to fall by 14.4% annually, even worse than its revenue declines
At $16.52 per share, Herbalife trades at 6.7x forward P/E. Check out our free in-depth research report to learn more about why HLF doesn’t pass our bar.
Origin Bancorp (OBK)
Share Price: $41.28
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Why Are We Cautious About OBK?
- Sales trends were unexciting over the last two years as its 7.5% annual growth was below the typical banking company
- Net interest margin of 3.4% reflects its high servicing and capital costs
- Estimated tangible book value per share growth of 8.2% for the next 12 months implies profitability will slow from its two-year trend
Origin Bancorp’s stock price of $41.28 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than OBK.
BankUnited (BKU)
Share Price: $44.44
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE: BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
Why Does BKU Fall Short?
- 5.6% annual net interest income growth over the last five years was slower than its banking peers
- Anticipated 15.3 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.9% annually
BankUnited is trading at $44.44 per share, or 1x forward P/B. If you’re considering BKU for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.
