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.
Fluence Energy (FLNC)
Share Price: $18.85
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Are We Hesitant About FLNC?
- Gross margin of 7.2% reflects its high production costs
- 6.4 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
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Fluence Energy is trading at $18.85 per share, or 62.9x forward EV-to-EBITDA. To fully understand why you should be careful with FLNC, check out our full research report (it’s free for active Edge members).
Supernus Pharmaceuticals (SUPN)
Share Price: $50.89
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Is SUPN Not Exciting?
- 2.4% annual revenue growth over the last two years was slower than its healthcare peers
- Smaller revenue base of $665.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $50.89 per share, Supernus Pharmaceuticals trades at 22.6x forward P/E. If you’re considering SUPN for your portfolio, see our FREE research report to learn more.
Insperity (NSP)
Share Price: $47.11
Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.
Why Does NSP Fall Short?
- Annual revenue growth of 3.2% over the last two years was below our standards for the business services sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 13.2% annually while its revenue grew
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Insperity’s stock price of $47.11 implies a valuation ratio of 18.6x forward P/E. Dive into our free research report to see why there are better opportunities than NSP.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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