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 swipe left on and some alternatives you should look into instead.
Chegg (CHGG)
Share Price: $1.24
Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Should You Sell CHGG?
- Services Subscribers have declined by 17.3% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin
- Sales were less profitable over the last three years as its earnings per share fell by 38.2% annually, worse than its revenue declines
At $1.24 per share, Chegg trades at 1.7x forward EV/EBITDA. If you’re considering CHGG for your portfolio, see our FREE research report to learn more.
1-800-FLOWERS (FLWS)
Share Price: $5.48
Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.
Why Are We Out on FLWS?
- Annual revenue declines of 9.9% over the last two years indicate problems with its market positioning
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 18.4% annually while its revenue grew
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
1-800-FLOWERS’s stock price of $5.48 implies a valuation ratio of 18.3x forward P/E. To fully understand why you should be careful with FLWS, check out our full research report (it’s free).
Integral Ad Science (IAS)
Share Price: $9.03
Processing over 280 billion digital ad interactions daily through its AI-powered technology, Integral Ad Science (NASDAQ: IAS) provides a cloud-based platform that measures and verifies digital advertising across devices, channels, and formats to ensure ads are viewable, fraud-free, and brand-safe.
Why Does IAS Fall Short?
- Sales trends were unexciting over the last three years as its 15.4% annual growth was below the typical software company
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 6.7 percentage points
Integral Ad Science is trading at $9.03 per share, or 2.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than IAS.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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 Tecnoglass (+1,754% 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
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