Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts. But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Himax (HIMX)
Share Price: $7.76
Taiwan-based Himax Technologies (NASDAQ: HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Why Do We Think HIMX Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6% annually over the last two years
- Projected sales decline of 4.4% over the next 12 months indicates demand will continue deteriorating
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 22.9 percentage points
Himax is trading at $7.76 per share, or 51.5x forward P/E. Dive into our free research report to see why there are better opportunities than HIMX.
BeautyHealth (SKIN)
Share Price: $1.33
Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ: SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.
Why Do We Pass on SKIN?
- Annual revenue declines of 4.4% over the last three years indicate problems with its market positioning
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Earnings per share have dipped by 61.1% annually over the past three years, which is concerning because stock prices follow EPS over the long term
At $1.33 per share, BeautyHealth trades at 4.4x forward EV-to-EBITDA. To fully understand why you should be careful with SKIN, check out our full research report (it’s free for active Edge members).
Array (ARRY)
Share Price: $9.28
Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Why Are We Out on ARRY?
- Annual sales declines of 9.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have contracted by 9.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Array’s stock price of $9.28 implies a valuation ratio of 12.7x forward P/E. Read our free research report to see why you should think twice about including ARRY in your portfolio.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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