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. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.

Herbalife (HLF)

Share Price: $8.85

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Why Are We Cautious About HLF?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Anticipated sales growth of 3.6% for the next year implies demand will be shaky
3. Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 17.3% annually, worse than its revenue

At $8.85 per share, Herbalife trades at 4x forward P/E. If you’re considering HLF for your portfolio, see our FREE research report to learn more.

E.W. Scripps (SSP)

Share Price: $2.38

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Why Is SSP Risky?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Underwhelming 3.5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

E.W. Scripps’s stock price of $2.38 implies a valuation ratio of 0.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SSP in your portfolio.

Icahn Enterprises (IEP)

Share Price: $8.37

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Why Are We Wary of IEP?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 9.8% annually over the last two years
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 8.5%
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Icahn Enterprises is trading at $8.37 per share, or 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than IEP.

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 5 Growth Stocks for this month. 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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