Three Stocks Under $50 with Shaky Fundamentals to Avoid

Three stocks under $50 to avoid are C3.ai, Levi's, and Acadia Healthcare due to underwhelming revenue performance, sluggish demand, and poor management of expenses and capital investments. Better opportunities exist, and investors should consider alternative investments with stronger fundamentals.

In the dynamic world of investing, identifying underperforming stocks is crucial for portfolio management. This article highlights three stocks under $50 that investors should avoid due to their underwhelming revenue performance, sluggish demand, and poor management of expenses and capital investments.

C3.ai (C3.AI)

C3.ai, a provider of AI-driven enterprise software, has shown disappointing revenue performance. According to Reuters, C3.ai's revenue fell by 45% in Q2 2025 compared to the same period in 2024 [1]. This significant drop can be attributed to lower sales volumes and reduced customer acquisition. Additionally, the company's cost structure remains inefficient, leading to consistent operating losses. Despite these challenges, C3.ai has been able to maintain a strong market position, but its financial performance raises concerns about its long-term viability.

Levi Strauss & Co. (LEVI)

Levi's, a well-known brand in the apparel industry, has been facing sluggish demand and increased competition. The company's revenue growth has been stagnant, with a mere 2% increase in Q2 2025 compared to the previous year [2]. This slow growth can be attributed to a decline in consumer spending and increased competition from fast-fashion brands. Moreover, Levi's has struggled to manage its expenses and capital investments effectively, leading to a decline in its profitability. These factors make Levi's a risky investment for those seeking strong returns.

Acadia Healthcare Company (ACHC)

Acadia Healthcare, a provider of behavioral health services, has seen a downward revision in its full-year 2025 earnings guidance and a change in its Chief Financial Officer [3]. The company's revenue increased by 9.2% year-on-year in Q2 2025, but this growth was not enough to offset the downward revision in earnings guidance. The change in CFO and the uncertainty surrounding Medicaid reimbursement and patient volumes have heightened concerns about the company's near-term profit execution. Despite these challenges, Acadia Healthcare remains committed to expanding its facility network, but the risks associated with its business model make it a less attractive investment option.

Better Opportunities Exist

While C3.ai, Levi's, and Acadia Healthcare may not be the best choices for investors seeking strong returns, there are alternative investments with stronger fundamentals. Investors should consider stocks with proven track records, consistent revenue growth, and efficient management of expenses and capital investments. By focusing on these factors, investors can build a more robust and resilient portfolio.

References

[1] Reuters. (2025). "C3.ai Q2 2025 Revenue Falls by 45%." Retrieved from [https://www.tradingview.com/news/reuters.com,2025:newsml_PLX79AFEB:0-c3-ai-q2-revenue-drops-45/](https://www.tradingview.com/news/reuters.com,2025:newsml_PLX79AFEB:0-c3-ai-q2-revenue-drops-45/)

[2] Simply Wall St. (2025). "Levi Strauss & Co. Investment Narrative Recap." Retrieved from [https://simplywall.st/stocks/us/retail/nasdaq-levi/levi-strauss-co/news/levi-strauss-q2-2025-results](https://simplywall.st/stocks/us/retail/nasdaq-levi/levi-strauss-co/news/levi-strauss-q2-2025-results)

[3] Simply Wall St. (2025). "Acadia Healthcare Company Investment Narrative Recap." Retrieved from [https://simplywall.st/stocks/us/healthcare/nasdaq-achc/acadia-healthcare/news/will-acadia-healthcares-achc-revised-outlook-and-cfo-change](https://simplywall.st/stocks/us/healthcare/nasdaq-achc/acadia-healthcare/news/will-acadia-healthcares-achc-revised-outlook-and-cfo-change)