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3 Stocks Under $10 We Approach with Caution

CMRC Cover Image

Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.

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.

Commerce (CMRC)

Share Price: $4.34

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Why Should You Dump CMRC?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 2.4% underwhelmed
  2. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
  3. Poor free cash flow margin of 8.3% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Commerce’s stock price of $4.34 implies a valuation ratio of 1x forward price-to-sales. To fully understand why you should be careful with CMRC, check out our full research report (it’s free for active Edge members).

Torrid (CURV)

Share Price: $1.08

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE: CURV) is a plus-size women’s apparel and accessories retailer.

Why Are We Out on CURV?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  2. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
  3. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Torrid is trading at $1.08 per share, or 7.5x forward EV-to-EBITDA. If you’re considering CURV for your portfolio, see our FREE research report to learn more.

Zevia (ZVIA)

Share Price: $2.56

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Why Does ZVIA Worry Us?

  1. Flat sales over the last three years suggest it must innovate and find new ways to grow
  2. Revenue base of $162.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Historical operating margin losses point to an inefficient cost structure

At $2.56 per share, Zevia trades at 252.6x forward EV-to-EBITDA. To fully understand why you should be careful with ZVIA, check out our full research report (it’s free for active Edge members).

Stocks We Like 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-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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