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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
NeoGenomics (NEO)
Share Price: $11.49
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ: NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Why Are We Out on NEO?
- Smaller revenue base of $709.2 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Push for growth has led to negative returns on capital, signaling value destruction
- 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
NeoGenomics’s stock price of $11.49 implies a valuation ratio of 79.5x forward P/E. Check out our free in-depth research report to learn more about why NEO doesn’t pass our bar.
Hewlett Packard Enterprise (HPE)
Share Price: $24.37
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Why Are We Wary of HPE?
- Annual sales growth of 4.9% over the last five years lagged behind its business services peers as its large revenue base made it difficult to generate incremental demand
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 5.5% annually
- 10.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Hewlett Packard Enterprise is trading at $24.37 per share, or 10.2x forward P/E. To fully understand why you should be careful with HPE, check out our full research report (it’s free for active Edge members).
KeyCorp (KEY)
Share Price: $20.51
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Do We Think Twice About KEY?
- 2.5% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 2.4% reflects its high servicing and capital costs
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
At $20.51 per share, KeyCorp trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including KEY in your portfolio.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 Tecnoglass (+1,754% 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.
