3 Stocks Under $10 Skating on Thin Ice

May 22, 2025 at 00:40 AM EDT

LEG Cover Image

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 bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

Leggett & Platt (LEG)

Share Price: $8.93

Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.

Why Do We Think LEG Will Underperform?

Sales tumbled by 1.5% annually over the last five years, showing consumer trends are working against its favor
Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 15.7% annually, worse than its revenue
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $8.93 per share, Leggett & Platt trades at 8x forward P/E. Read our free research report to see why you should think twice about including LEG in your portfolio.

Pitney Bowes (PBI)

Share Price: $10.11

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Why Does PBI Worry Us?

Sales tumbled by 9% annually over the last five years, showing market trends are working against its favor during this cycle
Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Low returns on capital reflect management’s struggle to allocate funds effectively

To fully understand why you should be careful with PBI, check out our full research report (it’s free).

TPI Composites (TPIC)

Share Price: $1.14

Founded in 1968, TPI Composites (NASDAQ: TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.

Why Do We Steer Clear of TPIC?

Customers had second thoughts about committing to its offerings over the past two years as its billings averaged 11.5% declines
Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
EBITDA losses may force it to accept punitive lending terms or high-cost debt

TPI Composites’s stock price of $1.14 implies a valuation ratio of 1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TPIC.

Stocks We Like More

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 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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.

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3 Stocks Under $10 Skating on Thin Ice

Leggett & Platt (LEG)

Pitney Bowes (PBI)

TPI Composites (TPIC)

Stocks We Like More

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