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 is one stock under $10 that could 100x and two best left ignored.
Two Stocks Under $10 to Sell:
Asure Software (ASUR)
Share Price: $8.10
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Do We Think ASUR Will Underperform?
- 4% annual revenue growth over the last two years was slower than its software peers
- Static operating margin over the last year shows it couldn’t become more efficient
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Asure Software’s stock price of $8.10 implies a valuation ratio of 1.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASUR.
Custom Truck One Source (CTOS)
Share Price: $5.87
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Why Does CTOS Fall Short?
- Annual revenue growth of 2.9% over the last two years was below our standards for the industrials sector
- Earnings per share have dipped by 47.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin dropped by 19.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Custom Truck One Source is trading at $5.87 per share, or 3.3x forward EV-to-EBITDA. To fully understand why you should be careful with CTOS, check out our full research report (it’s free for active Edge members).
One Stock Under $10 to Watch:
Payoneer (PAYO)
Share Price: $5.34
Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ: PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.
Why Does PAYO Stand Out?
- Market share has increased this cycle as its 25.3% annual revenue growth over the last five years was exceptional
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $5.34 per share, Payoneer trades at 19.9x forward P/E. 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
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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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