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3 Stocks Under $10 Skating on Thin Ice

BMBL 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.

Bumble (BMBL)

Share Price: $5.83

Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.

Why Does BMBL Give Us Pause?

  1. Customer spending has dipped by 4.9% on average as it focused on growing its buyers
  2. Forecasted revenue decline of 11.1% for the upcoming 12 months implies demand will fall off a cliff
  3. Capital intensity has ramped up over the last few years as its free cash flow margin decreased by 4.4 percentage points

At $5.83 per share, Bumble trades at 2.5x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than BMBL.

LifeStance Health Group (LFST)

Share Price: $5.68

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ: LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

Why Is LFST Not Exciting?

  1. Modest revenue base of $1.28 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Negative returns on capital show management lost money while trying to expand the business

LifeStance Health Group’s stock price of $5.68 implies a valuation ratio of 74x forward P/E. Read our free research report to see why you should think twice about including LFST in your portfolio.

Viatris (VTRS)

Share Price: $8.51

Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.

Why Should You Dump VTRS?

  1. Sales tumbled by 4.8% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Issuance of new shares over the last five years caused its earnings per share to fall by 11.1% annually while its revenue grew
  3. Push for growth has led to negative returns on capital, signaling value destruction, and its shrinking returns suggest its past profit sources are losing steam

Viatris is trading at $8.51 per share, or 3.7x forward P/E. If you’re considering VTRS for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 6 Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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