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. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
BigCommerce (BIGC)
Share Price: $5.24
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ: BIGC) provides software for businesses to easily create online stores.
Why Do We Pass on BIGC?
- ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software
- Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend
- Poor expense management has led to operating losses
BigCommerce’s stock price of $5.24 implies a valuation ratio of 1.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BIGC.
Denny's (DENN)
Share Price: $4.62
Open around the clock, Denny’s (NASDAQ: DENN) is a chain of diner restaurants serving breakfast and traditional American fare.
Why Are We Out on DENN?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Free cash flow margin shrank by 9 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $4.62 per share, Denny's trades at 8.9x forward P/E. Read our free research report to see why you should think twice about including DENN in your portfolio.
Manitowoc (MTW)
Share Price: $11.02
Contracted by the United States Navy during WWII, Manitowoc (NYSE: MTW) provides cranes and lifting equipment.
Why Do We Think MTW Will Underperform?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 12.5% decline in its backlog
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 42.3% annually while its revenue grew
- Underwhelming 1.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Manitowoc is trading at $11.02 per share, or 14.7x forward P/E. If you’re considering MTW for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.
