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 downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one stock under $10 that could 100x and two that could be down big.
Two Stocks Under $10 to Sell:
Hillman (HLMN)
Share Price: $8.95
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Are We Cautious About HLMN?
- 2.5% annual revenue growth over the last two years was slower than its industrials peers
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.6% for the last five years
- ROIC of 2.5% reflects management’s challenges in identifying attractive investment opportunities
Hillman is trading at $8.95 per share, or 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than HLMN.
Hertz (HTZ)
Share Price: $4.68
Started with a dozen Model T Fords, Hertz (NASDAQ: HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Why Should You Sell HTZ?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
- 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Hertz’s stock price of $4.68 implies a valuation ratio of 96.1x forward EV-to-EBITDA. If you’re considering HTZ for your portfolio, see our FREE research report to learn more.
One Stock Under $10 to Watch:
Snap (SNAP)
Share Price: $5.13
Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.
Why Do We Like SNAP?
- Highly efficient business model is illustrated by its impressive 10.6% EBITDA margin, and it turbocharged its profits by achieving some fixed cost leverage
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.9% outpaced its revenue gains
- Free cash flow margin increased by 6.2 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $5.13 per share, Snap trades at 9.4x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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 Growth Stocks for this month. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
