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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. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.

Sirius XM (SIRI)

Share Price: $21.75

Known for its commercial-free music channels, Sirius XM (NASDAQ:SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.

Why Should You Dump SIRI?

1. Demand for its offerings was relatively low as its number of core subscribers has underwhelmed

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 36.6% annually while its revenue grew

3. Waning returns on capital imply its previous profit engines are losing steam

Sirius XM’s stock price of $21.75 implies a valuation ratio of 7.3x forward P/E. If you’re considering SIRI for your portfolio, see our FREE research report to learn more.

Napco (NSSC)

Share Price: $27.35

Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Why Does NSSC Fall Short?

1. 3.7% annual revenue growth over the last two years was slower than its business services peers

2. Revenue base of $181.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

Napco is trading at $27.35 per share, or 23.6x forward P/E. Dive into our free research report to see why there are better opportunities than NSSC.

Rivian (RIVN)

Share Price: $14.75

The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.

Why Do We Think Twice About RIVN?

1. Negative 52.8% gross margin means it loses money on every sale and must pivot or scale quickly to survive

2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $14.75 per share, Rivian trades at 3.1x forward price-to-sales. Check out our free in-depth research report to learn more about why RIVN doesn’t pass our bar.