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.

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.

Advance Auto Parts (AAP)

Share Price: $54.36

Founded in Virginia in 1932, Advance Auto Parts (NYSE: AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.

Why Do We Think AAP Will Underperform?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. 6.8 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Advance Auto Parts’s stock price of $54.36 implies a valuation ratio of 22.2x forward P/E. If you’re considering AAP for your portfolio, see our FREE research report to learn more.

VF Corp (VFC)

Share Price: $14.49

Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.

Why Do We Avoid VFC?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $14.49 per share, VF Corp trades at 18.4x forward P/E. To fully understand why you should be careful with VFC, check out our full research report (it’s free for active Edge members).

Zurn Elkay (ZWS)

Share Price: $46.37

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.

Why Is ZWS Risky?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share dropped by 6.1% annually, worse than its revenue
3. 5.5 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

Zurn Elkay is trading at $46.37 per share, or 31.2x forward P/E. Read our free research report to see why you should think twice about including ZWS in your portfolio.

Stocks We Like More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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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