3 Stocks Under $10 We Find Risky

September 01, 2025 at 00:42 AM EDT

ZVIA 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.

Zevia (ZVIA)

Share Price: $2.74

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Why Do We Think Twice About ZVIA?

Sales stagnated over the last three years and signal the need for new growth strategies
Historical operating margin losses point to an inefficient cost structure
Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Zevia is trading at $2.74 per share, or 1.1x forward price-to-sales. If you’re considering ZVIA for your portfolio, see our FREE research report to learn more.

Tilray (TLRY)

Share Price: $1.38

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Why Are We Out on TLRY?

Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 255.8 percentage points
Incremental sales over the last three years were much less profitable as its earnings per share fell by 32.4% annually while its revenue grew
Capital intensity has ramped up over the last year as its free cash flow margin decreased by 8.1 percentage points

At $1.38 per share, Tilray trades at 19.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TLRY doesn’t pass our bar.

Grid Dynamics (GDYN)

Share Price: $8.36

With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.

Why Does GDYN Give Us Pause?

Subscale operations are evident in its revenue base of $389.2 million, meaning it has fewer distribution channels than its larger rivals
Earnings per share fell by 3.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
Negative returns on capital show management lost money while trying to expand the business

Grid Dynamics’s stock price of $8.36 implies a valuation ratio of 18.5x forward P/E. Read our free research report to see why you should think twice about including GDYN in your portfolio.

High-Quality Stocks for All Market Conditions

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3 Stocks Under $10 We Find Risky

Zevia (ZVIA)

Tilray (TLRY)

Grid Dynamics (GDYN)

High-Quality Stocks for All Market Conditions

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