Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
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.
Chegg (CHGG)
Share Price: $0.92
Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Do We Avoid CHGG?
- Intense competition is diverting traffic from its platform as its services subscribers fell by 21.7% annually
- EBITDA margin declined by 13 percentage points over the last few years as its sales cratered
- Sales were less profitable over the last three years as its earnings per share fell by 45.3% annually, worse than its revenue declines
At $0.92 per share, Chegg trades at 2x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHGG in your portfolio.
1-800-FLOWERS (FLWS)
Share Price: $3.12
Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.
Why Do We Pass on FLWS?
- Annual revenue declines of 8.5% over the last two years indicate problems with its market positioning
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
1-800-FLOWERS’s stock price of $3.12 implies a valuation ratio of 4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FLWS.
ChargePoint (CHPT)
Share Price: $7.89
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Are We Cautious About CHPT?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 15.6% annually over the last two years
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
ChargePoint is trading at $7.89 per share, or 0.4x forward price-to-sales. If you’re considering CHPT for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
