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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.
Share Price: $10.22
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Why Do We Think TWI Will Underperform?
-
Annual sales declines of 7.4% for the past two years show its products and services struggled to connect with the market during this cycle
-
Gross margin of 14% is below its competitors, leaving less money to invest in areas like marketing and R&D
-
Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Titan International is trading at $10.22 per share, or 28.2x forward P/E. Dive into our free research report to see why there are better opportunities than TWI.
Share Price: $28.99
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Is BAX Risky?
-
Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.3% annually over the last two years
-
Weak constant currency growth over the past two years indicates challenges in maintaining its market share
-
Sales were less profitable over the last five years as its earnings per share fell by 4.7% annually, worse than its revenue declines
At $28.99 per share, Baxter trades at 11.4x forward P/E. If you’re considering BAX for your portfolio, see our FREE research report to learn more.
Share Price: $20.82
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ:CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Why Do We Steer Clear of CVBF?
-
1.6% annual net interest income growth over the last four years was slower than its bank peers
-
Net interest margin dropped by 22 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market
-
Capital trends were unexciting over the last five years as its 2.7% annual tangible book value per share growth was below the typical bank company