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3 Stocks Under $10 We’re Skeptical Of

GTM 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. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

ZoomInfo (GTM)

Share Price: $6.47

Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.

Why Do We Pass on GTM?

  1. Billings didn’t grow over the last year, suggesting the company struggled to sell its software and might have to lower prices to stimulate growth
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.6 percentage points

At $6.47 per share, ZoomInfo trades at 1.6x forward price-to-sales. If you’re considering GTM for your portfolio, see our FREE research report to learn more.

Udemy (UDMY)

Share Price: $4.85

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Why Does UDMY Give Us Pause?

  1. Intense competition is diverting traffic from its platform as its monthly active buyers fell by 56.2% annually
  2. Estimated sales growth of 2% for the next 12 months implies demand will slow from its three-year trend
  3. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

Udemy’s stock price of $4.85 implies a valuation ratio of 3.7x forward EV/EBITDA. Read our free research report to see why you should think twice about including UDMY in your portfolio.

Portillo's (PTLO)

Share Price: $5

Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.

Why Is PTLO Risky?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Lacking free cash flow margin got worse over the last year as its investment needs accelerated
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Portillo's is trading at $5 per share, or 28.5x forward P/E. Dive into our free research report to see why there are better opportunities than PTLO.

Stocks We Like More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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