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.
SunOpta (STKL)
Share Price: $6.23
Committed to clean-label foods, SunOpta (NASDAQ: STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.
Why Is STKL Not Exciting?
- Annual revenue declines of 4.2% over the last three years indicate problems with its market positioning
- Modest revenue base of $742.7 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 16% is an output of its commoditized products
At $6.23 per share, SunOpta trades at 31.6x forward P/E. Read our free research report to see why you should think twice about including STKL in your portfolio.
The Honest Company (HNST)
Share Price: $5.43
Co-founded by actress Jessica Alba, The Honest Company (NASDAQ: HNST) sells diapers and wipes, skin care products, and household cleaning products.
Why Does HNST Fall Short?
- Revenue base of $389.4 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Free cash flow margin shrank by 6.6 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- Negative returns on capital show that some of its growth strategies have backfired
The Honest Company’s stock price of $5.43 implies a valuation ratio of 19.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why HNST doesn’t pass our bar.
Altice (ATUS)
Share Price: $2.48
Based in Long Island City, Altice USA (NYSE: ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.
Why Do We Think ATUS Will Underperform?
- Number of broadband subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Altice is trading at $2.48 per share, or 0.3x forward EV-to-EBITDA. If you’re considering ATUS for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
