Three Stocks Under $50 to Avoid: Avnet, Concentrix, and Starwood Property Trust
ByAinvest
Tuesday, Oct 14, 2025 4:17 am ET1min read
AVT--
Avnet (NASDAQ:AVT)
Avnet, a global electronic components distributor, reported revenues of $5.62 billion in Q2, which was flat year-on-year. While this figure exceeded analysts' expectations by 4.5%, the company's performance was not as strong as it could have been. The company's Chief Executive Officer, Phil Gallagher, acknowledged the challenges faced during the quarter, including the impact of cloud migration on hardware demand and potential supply chain disruptions [1]. Given these factors, Avnet's stock has remained relatively unchanged since the latest earnings results, currently trading at $51.74. The company's declining sales and falling earnings per share make it a stock to avoid for risk-averse investors.
Concentrix (CNXC)
Concentrix, a customer experience management company, has been struggling with low returns on capital and ineffective fund allocation. The company's financial performance has been lackluster, with a significant decline in shareholder returns. Despite the challenges, Concentrix has been working on improving its operational efficiency and expanding its services to enhance profitability. However, the company's financial track record and the uncertainty surrounding its business model make it a risky investment for investors seeking stable returns [2].
Starwood Property Trust (STWD)
Starwood Property Trust, a real estate investment trust (REIT), has a diversified but risky portfolio. The company's stock has been the target of institutional investors, with Blair William & Co. IL increasing its position in the stock by 11.0% during the second quarter . However, the company's financial performance has been inconsistent, with revenues declining by 9.3% year-over-year in Q2. Additionally, the company's payout ratio of 176.15% indicates that it is paying out a significant portion of its earnings as dividends, which could impact its future growth prospects. The company's debt-to-equity ratio of 2.90 also suggests a high level of financial leverage, making it a risky investment for investors seeking stability.
Conclusion
Investors should exercise caution when considering these three stocks. Avnet's declining sales and falling earnings per share, Concentrix's low returns on capital and ineffective fund allocation, and Starwood Property Trust's risky real estate portfolio make them unsuitable for risk-averse investors. It is essential to conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
References
[1] https://finance.yahoo.com/news/spotting-winners-avnet-nasdaq-avt-033442498.html
[2] https://www.marketbeat.com/instant-alerts/filing-blair-william-co-il-has-950-million-stock-holdings-in-starwood-property-trust-inc-stwd-2025-10-12/
https://www.marketbeat.com/instant-alerts/filing-blair-william-co-il-has-950-million-stock-holdings-in-starwood-property-trust-inc-stwd-2025-10-12/
CNXC--
STWD--
Three stocks under $50 to avoid: Avnet (AVT) due to declining sales and falling earnings per share, Concentrix (CNXC) due to low returns on capital and ineffective fund allocation, and Starwood Property Trust (STWD) due to its diversified but risky real estate portfolio.
As the financial markets continue to evolve, it is essential for investors to stay vigilant and make informed decisions. This article highlights three stocks currently trading under $50 that investors should consider avoiding due to their respective financial performances and risks.Avnet (NASDAQ:AVT)
Avnet, a global electronic components distributor, reported revenues of $5.62 billion in Q2, which was flat year-on-year. While this figure exceeded analysts' expectations by 4.5%, the company's performance was not as strong as it could have been. The company's Chief Executive Officer, Phil Gallagher, acknowledged the challenges faced during the quarter, including the impact of cloud migration on hardware demand and potential supply chain disruptions [1]. Given these factors, Avnet's stock has remained relatively unchanged since the latest earnings results, currently trading at $51.74. The company's declining sales and falling earnings per share make it a stock to avoid for risk-averse investors.
Concentrix (CNXC)
Concentrix, a customer experience management company, has been struggling with low returns on capital and ineffective fund allocation. The company's financial performance has been lackluster, with a significant decline in shareholder returns. Despite the challenges, Concentrix has been working on improving its operational efficiency and expanding its services to enhance profitability. However, the company's financial track record and the uncertainty surrounding its business model make it a risky investment for investors seeking stable returns [2].
Starwood Property Trust (STWD)
Starwood Property Trust, a real estate investment trust (REIT), has a diversified but risky portfolio. The company's stock has been the target of institutional investors, with Blair William & Co. IL increasing its position in the stock by 11.0% during the second quarter . However, the company's financial performance has been inconsistent, with revenues declining by 9.3% year-over-year in Q2. Additionally, the company's payout ratio of 176.15% indicates that it is paying out a significant portion of its earnings as dividends, which could impact its future growth prospects. The company's debt-to-equity ratio of 2.90 also suggests a high level of financial leverage, making it a risky investment for investors seeking stability.
Conclusion
Investors should exercise caution when considering these three stocks. Avnet's declining sales and falling earnings per share, Concentrix's low returns on capital and ineffective fund allocation, and Starwood Property Trust's risky real estate portfolio make them unsuitable for risk-averse investors. It is essential to conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
References
[1] https://finance.yahoo.com/news/spotting-winners-avnet-nasdaq-avt-033442498.html
[2] https://www.marketbeat.com/instant-alerts/filing-blair-william-co-il-has-950-million-stock-holdings-in-starwood-property-trust-inc-stwd-2025-10-12/
https://www.marketbeat.com/instant-alerts/filing-blair-william-co-il-has-950-million-stock-holdings-in-starwood-property-trust-inc-stwd-2025-10-12/
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