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 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 swipe left on and some alternatives you should look into instead.

Zevia (ZVIA)

Share Price: $2.22

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 Are We Wary of ZVIA?

1. Muted 3.9% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
2. Modest revenue base of $155 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Suboptimal cost structure is highlighted by its history of operating losses

Zevia is trading at $2.22 per share, or 0.8x forward price-to-sales. Read our free research report to see why you should think twice about including ZVIA in your portfolio.

Altice (ATUS)

Share Price: $2.37

Based in Long Island City, Altice USA (NYSE: ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.

Why Do We Steer Clear of ATUS?

1. Performance surrounding its broadband subscribers has lagged its peers
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Altice’s stock price of $2.37 implies a valuation ratio of 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS.

Markforged (MKFG)

Share Price: $2.24

Beginning as a start-up at SolidWorks World–an annual design and engineering conference, Markforged (NYSE: MKFG) offers 3D printers and softwares to manufacturers of various industries.

Why Are We Hesitant About MKFG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.8% annually over the last two years
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 56.1 percentage points
3. Free cash flow margin shrank by 38.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $2.24 per share, Markforged trades at 0.5x forward price-to-sales. Check out our free in-depth research report to learn more about why MKFG doesn’t pass our bar.

Stocks We Like More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.