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3 Stocks Under $10 with Questionable Fundamentals

BLMN Cover Image

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

Bloomin' Brands (BLMN)

Share Price: $6.90

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Why Do We Think BLMN Will Underperform?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Estimated sales for the next 12 months are flat and imply a softer demand environment
  3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $6.90 per share, Bloomin' Brands trades at 6.8x forward P/E. To fully understand why you should be careful with BLMN, check out our full research report (it’s free for active Edge members).

Red Robin (RRGB)

Share Price: $4.31

Known for its bottomless steak fries, Red Robin (NASDAQ: RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Why Should You Dump RRGB?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
  2. Earnings per share have contracted by 19% annually over the last six years, a headwind for returns as stock prices often echo long-term EPS performance
  3. High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Red Robin is trading at $4.31 per share, or 1.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than RRGB.

Titan International (TWI)

Share Price: $7.57

Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.

Why Do We Pass on TWI?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last two years
  2. Sales were less profitable over the last two years as its earnings per share fell by 73.4% annually, worse than its revenue declines
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Titan International’s stock price of $7.57 implies a valuation ratio of 25.2x forward P/E. Check out our free in-depth research report to learn more about why TWI doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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-micro-cap company Kadant (+351% 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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