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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one stock under $10 with explosive upside potential and two best left ignored.

Two Stocks Under $10 to Sell:

GoodRx (GDRX)

Share Price: $3.71

Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.

Why Should You Sell GDRX?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Revenue base of $785.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Underwhelming -0.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

GoodRx’s stock price of $3.71 implies a valuation ratio of 9.8x forward P/E. If you’re considering GDRX for your portfolio, see our FREE research report to learn more.

PennyMac Mortgage Investment Trust (PMT)

Share Price: $9.35

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

Why Do We Pass on PMT?

1. Sales tumbled by 14.3% annually over the last five years, showing market trends are working against it during this cycle
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Annual tangible book value per share declines of 6.3% for the past five years show its capital management struggled during this cycle

At $9.35 per share, PennyMac Mortgage Investment Trust trades at 0.6x forward P/B. Check out our free in-depth research report to learn more about why PMT doesn’t pass our bar.

One Stock Under $10 to Buy:

Clover Health (CLOV)

Share Price: $4.70

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Why Do We Love CLOV?

1. Market share has increased this cycle as its 36.9% annual revenue growth over the last two years was exceptional
2. Earnings per share grew by 15.2% annually over the last five years and trumped its peers
3. Free cash flow margin is now positive, showing the company has crossed a key inflection point

Clover Health is trading at $4.70 per share, or 41.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.