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3 Stocks Under $10 with Questionable Fundamentals

GETY 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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

Getty Images (GETY)

Share Price: $1.82

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Should You Dump GETY?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Free cash flow margin shrank by 7.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Getty Images’s stock price of $1.82 implies a valuation ratio of 2.6x forward EV-to-EBITDA. If you’re considering GETY for your portfolio, see our FREE research report to learn more.

Target Hospitality (TH)

Share Price: $6.80

Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.

Why Are We Hesitant About TH?

  1. Performance surrounding its utilized beds has lagged its peers
  2. Projected sales decline of 29.3% over the next 12 months indicates demand will continue deteriorating
  3. Earnings per share lagged its peers over the last five years as they only grew by 7.6% annually

At $6.80 per share, Target Hospitality trades at 8.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TH.

Topgolf Callaway (MODG)

Share Price: $6.58

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE: MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Do We Pass on MODG?

  1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.2% annually while its revenue grew
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Topgolf Callaway is trading at $6.58 per share, or 2.6x forward EV-to-EBITDA. To fully understand why you should be careful with MODG, check out our full research report (it’s free).

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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