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.
Mattel (MAT)
Share Price: $19.91
Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products.
Why Is MAT Risky?
- Sales trends were unexciting over the last five years as its 3.3% annual growth was below the typical consumer discretionary company
- Poor free cash flow margin of 11.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Mattel is trading at $19.91 per share, or 11.6x forward P/E. Check out our free in-depth research report to learn more about why MAT doesn’t pass our bar.
DNOW (DNOW)
Share Price: $13.42
Spun off from National Oilwell Varco, DNOW (NYSE:DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
Why Does DNOW Give Us Pause?
- Muted 2.5% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- High input costs result in an inferior gross margin of 22.7% that must be offset through higher volumes
- Flat earnings per share over the last two years underperformed the sector average
DNOW’s stock price of $13.42 implies a valuation ratio of 0.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DNOW.
Columbia Financial (CLBK)
Share Price: $15.54
Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ:CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.
Why Do We Pass on CLBK?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Net interest margin of 2% reflects its high servicing and capital costs
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $15.54 per share, Columbia Financial trades at 1.4x forward P/B. If you’re considering CLBK for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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.