3 Stocks Under $50 We Find Risky

Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.

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.

LegalZoom (LZ)

Share Price: $10.22

Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.

Why Is LZ Not Exciting?

1. Muted 5.7% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
2. Platform monetization efforts took a back seat over the last two years as it focused on growing its users
3. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

LegalZoom’s stock price of $10.22 implies a valuation ratio of 9.2x forward EV/EBITDA. Read our free research report to see why you should think twice about including LZ in your portfolio.

Hilton Grand Vacations (HGV)

Share Price: $47.72

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Why Do We Think HGV Will Underperform?

1. Number of conducted tours has disappointed over the past two years, indicating weak demand for its offerings
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. High net-debt-to-EBITDA ratio of 11× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Hilton Grand Vacations is trading at $47.72 per share, or 11.6x forward P/E. To fully understand why you should be careful with HGV, check out our full research report (it’s free).

News Corp (NWSA)

Share Price: $26.54

Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.

Why Are We Out on NWSA?

1. Flat sales over the last five years suggest it must innovate and find new ways to grow
2. Poor free cash flow margin of 8.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate

At $26.54 per share, News Corp trades at 25.1x forward P/E. If you’re considering NWSA for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.