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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
DoubleVerify (DV)
Share Price: $10.98
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Are We Cautious About DV?
- 14.3% annual revenue growth over the last two years was slower than its software peers
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 2 percentage points
DoubleVerify’s stock price of $10.98 implies a valuation ratio of 2.2x forward price-to-sales. Check out our free in-depth research report to learn more about why DV doesn’t pass our bar.
Steven Madden (SHOO)
Share Price: $34.05
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Do We Pass on SHOO?
- Sales trends were unexciting over the last five years as its 16.1% annual growth was below the typical consumer discretionary company
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.1% for the last two years
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $34.05 per share, Steven Madden trades at 16.7x forward P/E. If you’re considering SHOO for your portfolio, see our FREE research report to learn more.
ASGN (ASGN)
Share Price: $42.29
Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.
Why Is ASGN Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.4% annually over the last two years
- Estimated sales growth of 1.2% for the next 12 months is soft and implies weaker demand
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
ASGN is trading at $42.29 per share, or 8.6x forward P/E. Dive into our free research report to see why there are better opportunities than ASGN.
High-Quality Stocks for All Market Conditions
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
