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 is one stock under $10 with huge potential and two best left ignored.
Two Stocks Under $10 to Sell:
Getty Images (GETY)
Share Price: $1.61
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Why Are We Cautious About GETY?
- Annual revenue growth of 1.3% over the last two years was below our standards for the business services sector
- 11.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $1.61 per share, Getty Images trades at 23.2x forward P/E. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.
Caleres (CAL)
Share Price: $11.66
The owner of Dr. Scholl's, Caleres (NYSE: CAL) is a footwear company offering a range of styles.
Why Are We Out on CAL?
- Lackluster 2.1% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Poor free cash flow margin of 2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Caleres is trading at $11.66 per share, or 4.8x forward P/E. To fully understand why you should be careful with CAL, check out our full research report (it’s free for active Edge members).
One Stock Under $10 to Watch:
LegalZoom (LZ)
Share Price: $9.41
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Does LZ Stand Out?
- Subscription Units are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 109% exceeded its revenue gains over the last three years
- Free cash flow margin grew by 17.1 percentage points over the last few years, giving the company more chips to play with
LegalZoom’s stock price of $9.41 implies a valuation ratio of 8.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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