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.
Sirius XM (SIRI)
Share Price: $21.75
Known for its commercial-free music channels, Sirius XM (NASDAQ: SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.
Why Should You Dump SIRI?
- Demand for its offerings was relatively low as its number of core subscribers has underwhelmed
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 36.6% annually while its revenue grew
- Waning returns on capital imply its previous profit engines are losing steam
Sirius XM’s stock price of $21.75 implies a valuation ratio of 7.3x forward P/E. Dive into our free research report to see why there are better opportunities than SIRI.
Napco (NSSC)
Share Price: $27.35
Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ: NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.
Why Does NSSC Fall Short?
- 3.7% annual revenue growth over the last two years was slower than its business services peers
- Revenue base of $181.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
Napco is trading at $27.35 per share, or 23.6x forward P/E. To fully understand why you should be careful with NSSC, check out our full research report (it’s free).
Rivian (RIVN)
Share Price: $14.75
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ: RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Why Do We Think Twice About RIVN?
- Negative 52.8% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- 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
At $14.75 per share, Rivian trades at 3.1x forward price-to-sales. Check out our free in-depth research report to learn more about why RIVN doesn’t pass our bar.
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.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
