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3 Stocks Under $10 with Warning Signs

BGS 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.

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.

B&G Foods (BGS)

Share Price: $5.79

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Why Do We Pass on BGS?

  1. Products have few die-hard fans as sales have declined by 5.4% annually over the last three years
  2. Issuance of new shares over the last three years caused its earnings per share to fall by 23.1% annually, even worse than its revenue declines
  3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $5.79 per share, B&G Foods trades at 8.6x forward P/E. Dive into our free research report to see why there are better opportunities than BGS.

eXp World (EXPI)

Share Price: $7.00

Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

Why Should You Dump EXPI?

  1. Sales trends were unexciting over the last two years as its 5.7% annual growth was below the typical consumer discretionary company
  2. Low free cash flow margin of 3.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

eXp World’s stock price of $7.00 implies a valuation ratio of 27x forward P/E. Check out our free in-depth research report to learn more about why EXPI doesn’t pass our bar.

Array (ARRY)

Share Price: $7.40

Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Do We Think ARRY Will Underperform?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 9.7% annually over the last two years
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.7% for the last five years
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Array is trading at $7.40 per share, or 10.5x forward P/E. If you’re considering ARRY for your portfolio, see our FREE research report to learn more.

Stocks We Like More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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