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. Keeping that in mind, here are three stocks under $50 to pass on and some alternatives you should look into instead.
Arhaus (ARHS)
Share price: $11.53
With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ: ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.
Why Are We Hesitant About ARHS?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Revenue base of $1.41 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 24.2% annually while its revenue grew
Arhaus’s stock price of $11.53 implies a valuation ratio of 22.7x forward P/E. If you’re considering ARHS for your portfolio, see our FREE research report to learn more.
Sally Beauty (SBH)
Share price: $17.41
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE: SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
Why Is SBH Risky?
- Absence of new stores indicates weak demand as management focuses on improving existing location performance
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Subscale operations are evident in its revenue base of $3.73 billion, meaning it has fewer distribution channels than its larger rivals
At $17.41 per share, Sally Beauty trades at 7.8x forward P/E. Check out our free in-depth research report to learn more about why SBH doesn’t pass our bar.
Kodiak Gas Services (KGS)
Share price: $48.11
Dominating the Permian Basin with a fleet focused on large horsepower units exceeding 1,000 horsepower each, Kodiak Gas Services (NYSE: KGS) operates compression equipment that maintains natural gas pressure for production, gathering, and transportation.
Why Are We Cautious About KGS?
- Smaller revenue base of $1.39 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Costs have risen faster than its revenue over the last five years, causing its EBITDA margin to decline by 2.3 percentage points
- Poor free cash flow margin of 3.3% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Kodiak Gas Services is trading at $48.11 per share, or 17.3x forward P/E. Read our free research report to see why you should think twice about including KGS in your portfolio.
Stocks we like more
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
