
3 Stocks Under $50 That Concern Us
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.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are three stocks under $50 to avoid and some other investments you should consider instead.
Angi (ANGI)
Share Price: $11.57
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Why Does ANGI Give Us Pause?
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Intense competition is diverting traffic from its platform as its service requests fell by 23.3% annually
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Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
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High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
Angi’s stock price of $11.57 implies a valuation ratio of 46.1x forward EV-to-EBITDA. If you’re considering ANGI for your portfolio, see our FREE research report to learn more .
Artivion (AORT)
Share Price: $23.69
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Do We Avoid AORT?
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7.1% annual revenue growth over the last five years was slower than its healthcare peers
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Smaller revenue base of $388.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
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Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.1% annually
Artivion is trading at $23.69 per share, or 48.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than AORT .
Privia Health (PRVA)
Share Price: $23.20
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Are We Cautious About PRVA?
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Subscale operations are evident in its revenue base of $1.74 billion, meaning it has fewer distribution channels than its larger rivals
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Negative returns on capital show management lost money while trying to expand the business