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 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 with huge potential and two that may have trouble.

Two Stocks Under $10 to Sell:

Coty (COTY)

Share Price: $3.33

With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.

Why Do We Steer Clear of COTY?

1. Organic sales performance over the past one years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Efficiency has decreased over the last year as its operating margin fell by 6.3 percentage points
3. Earnings per share have contracted by 14.1% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

At $3.33 per share, Coty trades at 7.5x forward P/E. To fully understand why you should be careful with COTY, check out our full research report (it’s free for active Edge members).

P10 (PX)

Share Price: $9.97

Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.

Why Are We Cautious About PX?

1. Performance over the past two years shows its incremental sales were less profitable, as its 7.1% annual earnings per share growth trailed its revenue gains
2. Underwhelming 5.8% return on equity reflects management’s difficulties in finding profitable growth opportunities

P10 is trading at $9.97 per share, or 9.4x forward P/E. Read our free research report to see why you should think twice about including PX in your portfolio.

One Stock Under $10 to Watch:

BGC (BGC)

Share Price: $8.87

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.

Why Could BGC Be a Winner?

1. Impressive 18.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 20.9% outpaced its revenue gains
3. Management team has demonstrated it can invest in profitable ventures through its 11.2% five-year return on equity

BGC’s stock price of $8.87 implies a valuation ratio of 6.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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-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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