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.
Skillz (SKLZ)
Share Price: $4.70
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Why Is SKLZ Risky?
- Intense competition is diverting traffic from its platform as its paying monthly active users fell by 15% annually
- Historical EBITDA margin losses point to an inefficient cost structure
- Negative free cash flow raises questions about the return timeline for its investments
Skillz is trading at $4.70 per share, or 0.7x forward price-to-gross profit. Check out our free in-depth research report to learn more about why SKLZ doesn’t pass our bar.
Xponential Fitness (XPOF)
Share Price: $8.65
Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Why Do We Think XPOF Will Underperform?
- Muted 2.5% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Xponential Fitness’s stock price of $8.65 implies a valuation ratio of 13.9x forward P/E. If you’re considering XPOF for your portfolio, see our FREE research report to learn more.
ADT (ADT)
Share Price: $8.08
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
Why Should You Sell ADT?
- Demand for its offerings was relatively low as its number of customers has underwhelmed
- Projected 2.2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $8.08 per share, ADT trades at 8.8x forward P/E. Read our free research report to see why you should think twice about including ADT in your portfolio.
Stocks We Like 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 6 Stocks for this week. 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.
