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.
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.
Medifast (MED)
Share Price: $11.00
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Do We Pass on MED?
- Products aren't resonating with the market as its revenue declined by 36% annually over the last three years
- Revenue base of $429.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Medifast is trading at $11.00 per share, or 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why MED doesn’t pass our bar.
Hayward (HAYW)
Share Price: $16.37
Credited with introducing the first variable-speed pool pump, Hayward (NYSE:HAYW) makes residential and commercial pool equipment and accessories.
Why Is HAYW Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have contracted by 26.9% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $16.37 per share, Hayward trades at 19.9x forward P/E. If you’re considering HAYW for your portfolio, see our FREE research report to learn more.
Luxfer (LXFR)
Share Price: $12.76
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.
Why Do We Think LXFR Will Underperform?
- Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Sales are projected to tank by 4.2% over the next 12 months as its demand continues evaporating
- Diminishing returns on capital suggest its earlier profit pools are drying up
Luxfer’s stock price of $12.76 implies a valuation ratio of 11.2x forward P/E. Read our free research report to see why you should think twice about including LXFR in your portfolio.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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 Kadant (+351% 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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