Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Leslie's (LESL)
Share Price: $5.01
Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ: LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.
Why Are We Out on LESL?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 8.9 percentage points
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Leslie’s stock price of $5.01 implies a valuation ratio of 10.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LESL in your portfolio.
Olaplex (OLPX)
Share Price: $1.31
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Why Are We Cautious About OLPX?
- Annual sales declines of 16.4% for the past three years show its products struggled to connect with the market
- Sales were less profitable over the last three years as its earnings per share fell by 49.6% annually, worse than its revenue declines
- Free cash flow margin dropped by 13.2 percentage points over the last year, implying the company became more capital intensive as competition picked up
Olaplex is trading at $1.31 per share, or 16.6x forward P/E. Dive into our free research report to see why there are better opportunities than OLPX.
Neogen (NEOG)
Share Price: $6.18
Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.
Why Do We Steer Clear of NEOG?
- Annual revenue growth of 4.3% over the last two years was below our standards for the healthcare sector
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $6.18 per share, Neogen trades at 16.6x forward P/E. If you’re considering NEOG for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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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