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 avoid and some other investments you should consider instead.
Under Armour (UAA)
Share Price: $5.04
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Do We Avoid UAA?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Forecasted revenue decline of 2.7% for the upcoming 12 months implies demand will fall even further
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Under Armour’s stock price of $5.04 implies a valuation ratio of 16.2x forward P/E. Dive into our free research report to see why there are better opportunities than UAA.
Funko (FNKO)
Share Price: $3.33
Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.
Why Should You Sell FNKO?
- Annual sales declines of 9.7% for the past two years show its products and services struggled to connect with the market
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $3.33 per share, Funko trades at 16.2x forward P/E. Read our free research report to see why you should think twice about including FNKO in your portfolio.
Pangaea (PANL)
Share Price: $5
Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Why Are We Wary of PANL?
- 3.2% annual revenue growth over the last two years was slower than its industrials peers
- Issuance of new shares over the last two years caused its earnings per share to fall by 41.1% annually while its revenue grew
- Low free cash flow margin of 0.3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Pangaea is trading at $5 per share, or 9.4x forward P/E. If you’re considering PANL for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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-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
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