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.
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. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.
Getty Images (GETY)
Share Price: $1.81
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 Is GETY Risky?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- 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
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $1.81 per share, Getty Images trades at 2.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GETY in your portfolio.
AMC Networks (AMCX)
Share Price: $6.14
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Do We Avoid AMCX?
- Products and services aren't resonating with the market as its revenue declined by 4.6% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 17.7% annually, worse than its revenue declines
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
AMC Networks is trading at $6.14 per share, or 2.1x forward P/E. Check out our free in-depth research report to learn more about why AMCX doesn’t pass our bar.
Global Business Travel (GBTG)
Share Price: $6.47
Holding close ties to American Express, Global Business Travel (NYSE: GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.
Why Are We Cautious About GBTG?
- Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its three-year trend
- Gross margin of 60.8% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Poor free cash flow margin of 6.9% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Global Business Travel’s stock price of $6.47 implies a valuation ratio of 1.3x forward price-to-sales. If you’re considering GBTG 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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
