Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts. But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
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. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Teladoc (TDOC)
Share Price: $5.41
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Hesitant About TDOC?
- Muted 1.7% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
- Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 8.5% annually
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
Teladoc’s stock price of $5.41 implies a valuation ratio of 4.2x forward EV/EBITDA. Check out our free in-depth research report to learn more about why TDOC doesn’t pass our bar.
AMC Networks (AMCX)
Share Price: $6.77
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 Should You Sell AMCX?
- Products and services have few die-hard fans as sales have declined by 3.9% annually over the last five years
- Free cash flow margin is forecasted to shrink by 3.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
AMC Networks is trading at $6.77 per share, or 3.9x forward P/E. Dive into our free research report to see why there are better opportunities than AMCX.
Funko (FNKO)
Share Price: $3.45
Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.
Why Are We Out on FNKO?
- Lackluster 6.8% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $3.45 per share, Funko trades at 5.1x forward EV-to-EBITDA. To fully understand why you should be careful with FNKO, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
