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 are three stocks under $10 to avoid and some other investments you should consider instead.
Coursera (COUR)
Share Price: $8.24
Founded by two Stanford University computer science professors, Coursera (NYSE: COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Why Does COUR Give Us Pause?
- Customer spending has dipped by 7.3% on average as it focused on growing its customers
- Estimated sales growth of 6% for the next 12 months implies demand will slow from its three-year trend
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
Coursera’s stock price of $8.24 implies a valuation ratio of 20x forward EV/EBITDA. Read our free research report to see why you should think twice about including COUR in your portfolio.
Quest Resource (QRHC)
Share Price: $2.22
Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.
Why Do We Think QRHC Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.6% annually over the last two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Quest Resource is trading at $2.22 per share, or 52.7x forward P/E. Check out our free in-depth research report to learn more about why QRHC doesn’t pass our bar.
GoodRx (GDRX)
Share Price: $2.70
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
Why Do We Pass on GDRX?
- Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
- Smaller revenue base of $800.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Negative returns on capital show that some of its growth strategies have backfired
At $2.70 per share, GoodRx trades at 6.8x forward P/E. If you’re considering GDRX for your portfolio, see our FREE research report to learn more.
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 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 Comfort Systems (+782% 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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