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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.

MGM Resorts (MGM)

Share Price: $29.73

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.

Why Should You Sell MGM?

1. Sizable revenue base leads to growth challenges as its 6% annual revenue increases over the last five years fell short of other consumer discretionary companies

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

3. 12× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

MGM Resorts’s stock price of $29.73 implies a valuation ratio of 13.3x forward price-to-earnings. To fully understand why you should be careful with MGM, check out our full research report (it’s free) .

Delta Air Lines (DAL)

Share Price: $41.48

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Do We Avoid DAL?

1. Demand for its offerings was relatively low as its number of revenue passenger miles has underwhelmed

2. Earnings per share fell by 6.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

3. Low returns on capital reflect management’s struggle to allocate funds effectively

Delta Air Lines is trading at $41.48 per share, or 5.7x forward price-to-earnings. If you’re considering DAL for your portfolio, see our FREE research report to learn more .

Diebold Nixdorf (DBD)

Share Price: $42.51

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Why Are We Wary of DBD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.2% annually over the last five years

2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend

3. Cash burn makes us question whether it can achieve sustainable long-term growth