Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Clarus (CLAR)
Share Price: $3.46
Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Why Do We Steer Clear of CLAR?
- Products and services aren't resonating with the market as its revenue declined by 17.4% annually over the last two years
- Earnings per share fell by 16.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $3.46 per share, Clarus trades at 8.5x forward EV-to-EBITDA. To fully understand why you should be careful with CLAR, check out our full research report (it’s free).
eXp World (EXPI)
Share Price: $7.99
Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
Why Do We Think EXPI Will Underperform?
- Sluggish trends in its transactions suggest customers aren’t adopting its solutions as quickly as the company hoped
- Subpar operating margin of -0.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Push for growth has led to negative returns on capital, signaling value destruction
eXp World’s stock price of $7.99 implies a valuation ratio of 18x forward P/E. If you’re considering EXPI for your portfolio, see our FREE research report to learn more.
Applied Digital (APLD)
Share Price: $5.35
Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.
Why Does APLD Fall Short?
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Applied Digital is trading at $5.35 per share, or 9.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including APLD in your portfolio.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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.
