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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Titan International (TWI)
Share Price: $10.22
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Why Do We Think TWI Will Underperform?
- Annual sales declines of 7.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 14% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Titan International is trading at $10.22 per share, or 28.2x forward P/E. To fully understand why you should be careful with TWI, check out our full research report (it’s free).
Baxter (BAX)
Share Price: $28.99
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE: BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Is BAX Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.3% annually over the last two years
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Sales were less profitable over the last five years as its earnings per share fell by 4.7% annually, worse than its revenue declines
At $28.99 per share, Baxter trades at 11.4x forward P/E. Check out our free in-depth research report to learn more about why BAX doesn’t pass our bar.
CVB Financial (CVBF)
Share Price: $20.82
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Why Do We Steer Clear of CVBF?
- 1.6% annual net interest income growth over the last four years was slower than its bank peers
- Net interest margin dropped by 22 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market
- Capital trends were unexciting over the last five years as its 2.7% annual tangible book value per share growth was below the typical bank company
CVB Financial’s stock price of $20.82 implies a valuation ratio of 1.3x forward P/B. Read our free research report to see why you should think twice about including CVBF in your portfolio.
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 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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