3 Stocks Under $50 We Think Twice About

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. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

Varonis Systems (VRNS)

Share Price: $45.50

Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ:VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.

Why Do We Steer Clear of VRNS?

1. Revenue increased by 16.1% annually over the last five years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
2. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
3. Efficiency has decreased over the last year as its operating margin fell by 2.5 percentage points

At $45.50 per share, Varonis Systems trades at 6.8x forward price-to-sales. Check out our free in-depth research report to learn more about why VRNS doesn’t pass our bar.

Bally's (BALY)

Share Price: $12.28

Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.

Why Should You Dump BALY?

1. Annual revenue growth of 6.9% over the last two years was below our standards for the consumer discretionary sector
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Bally’s stock price of $12.28 implies a valuation ratio of 11.3x forward EV-to-EBITDA. To fully understand why you should be careful with BALY, check out our full research report (it’s free).

Ingram Micro (INGM)

Share Price: $29.04

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE:INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Why Are We Out on INGM?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
3. Poor free cash flow margin of 0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Ingram Micro is trading at $29.04 per share, or 8.2x forward P/E. Read our free research report to see why you should think twice about including INGM in your portfolio.

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.