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3 Stocks Under $50 We Approach with Caution
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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 avoid and some other investments you should consider instead.
Revolve (RVLV)
Share Price: $30.19
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Why Should You Dump RVLV?
- Competition may be pulling attention away from its platform as its 5.7% average growth in active customers was choppy
- Demand has been weak recently as it posted disappointing growth in its average revenue per buyer and struggled to expand its platform
- Earnings per share have contracted by 10.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
At $30.19 per share, Revolve trades at 21.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including RVLV in your portfolio.
Perma-Fix (PESI)
Share Price: $12.84
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Why Do We Pass on PESI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.4% annually over the last five years
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Perma-Fix is trading at $12.84 per share, or 419.7x forward P/E. Dive into our free research report to see why there are better opportunities than PESI.
First Busey (BUSE)
Share Price: $23.79
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ:BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Are We Cautious About BUSE?
- Weak unit economics are reflected in its net interest margin of 3.2%, one of the worst among bank companies
- Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable
- Projected tangible book value per share decline of 4.6% for the next 12 months points to tough credit quality challenges ahead
First Busey’s stock price of $23.79 implies a valuation ratio of 0.9x forward P/B. If you’re considering BUSE for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Check out the high-quality names we’ve flagged in 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 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-small-cap company Comfort Systems (+782% 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.