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.
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 pass on and some alternatives you should look into instead.
Zumiez (ZUMZ)
Share Price: $14.01
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Do We Avoid ZUMZ?
- Store closures demonstrate a defensive approach to eliminating underperforming locations
- Smaller revenue base of $932.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Zumiez’s stock price of $14.01 implies a valuation ratio of 15.1x forward P/E. Dive into our free research report to see why there are better opportunities than ZUMZ.
Banc of California (BANC)
Share Price: $18.41
Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.
Why Do We Pass on BANC?
- Net interest income trends were unexciting over the last five years as its 2.5% annual growth was below the typical banking firm
- Expenses have increased as a percentage of revenue over the last five years as its efficiency ratio degraded by 15.9 percentage points
- Sales over the last five years were less profitable as its earnings per share fell by 24.3% annually while its revenue was flat
Banc of California is trading at $18.41 per share, or 1x forward P/B. If you’re considering BANC for your portfolio, see our FREE research report to learn more.
Ellington Financial (EFC)
Share Price: $13.05
Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE:EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.
Why Do We Steer Clear of EFC?
- Annual earnings per share growth of 4.6% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Annual tangible book value per share declines of 5.9% for the past five years show its capital management struggled during this cycle
- Below-average return on equity indicates management struggled to find compelling investment opportunities
At $13.05 per share, Ellington Financial trades at 1x forward P/B. Check out our free in-depth research report to learn more about why EFC doesn’t pass our bar.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.