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 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.
Krispy Kreme (DNUT)
Share Price: $2.99
Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ: DNUT) is one of the most beloved and well-known fast-food chains in the world.
Why Do We Steer Clear of DNUT?
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Krispy Kreme’s stock price of $2.99 implies a valuation ratio of 14.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including DNUT in your portfolio.
Offerpad (OPAD)
Share Price: $0.78
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Is OPAD Risky?
- Sluggish trends in its homes sold suggest customers aren’t adopting its solutions as quickly as the company hoped
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 10.6 percentage points
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
Offerpad is trading at $0.78 per share, or 0x forward price-to-sales. If you’re considering OPAD for your portfolio, see our FREE research report to learn more.
Navient (NAVI)
Share Price: $9.41
Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ: NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.
Why Do We Avoid NAVI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 19.2% annually over the last five years
- Earnings per share have dipped by 16.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Debt-to-equity ratio of 19.3× is concerningly high, indicating excessive leverage that could limit financial flexibility
At $9.41 per share, Navient trades at 13.9x forward P/E. Dive into our free research report to see why there are better opportunities than NAVI.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
