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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
STAAR Surgical (STAA)
Share Price: $25.74
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Should You Sell STAA?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Free cash flow margin shrank by 35.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $25.74 per share, STAAR Surgical trades at 58.7x forward P/E. Dive into our free research report to see why there are better opportunities than STAA.
Columbia Banking System (COLB)
Share Price: $26.03
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Does COLB Give Us Pause?
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 1.2% annually over the last five years
Columbia Banking System is trading at $26.03 per share, or 1x forward P/B. If you’re considering COLB for your portfolio, see our FREE research report to learn more.
BankUnited (BKU)
Share Price: $40.17
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?
- Net interest income trends were unexciting over the last five years as its 5.5% annual growth was below the typical banking firm
- Inferior net interest margin of 2.8% means it must compensate for lower profitability through increased loan originations
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 17.5 percentage points
BankUnited’s stock price of $40.17 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with BKU, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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 Comfort Systems (+782% 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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