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.
fuboTV (FUBO)
Share Price: $3.09
Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Is FUBO Not Exciting?
- Performance surrounding its domestic subscribers has lagged its peers
- Negative free cash flow raises questions about the return timeline for its investments
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
fuboTV is trading at $3.09 per share, or 0.6x forward price-to-sales. Check out our free in-depth research report to learn more about why FUBO doesn’t pass our bar.
eXp World (EXPI)
Share Price: $9.59
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
Why Are We Out on EXPI?
- Number of agents and brokers has disappointed over the past two years, indicating weak demand for its offerings
- Poor expense management has led to an operating margin of -0.2% that is below the industry average
- Negative returns on capital show that some of its growth strategies have backfired
eXp World’s stock price of $9.59 implies a valuation ratio of 12.2x forward price-to-earnings. Read our free research report to see why you should think twice about including EXPI in your portfolio.
Manitowoc (MTW)
Share Price: $9.46
Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.
Why Should You Dump MTW?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 9.6% decline in its backlog
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Poor free cash flow margin of -0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $9.46 per share, Manitowoc trades at 12.1x forward price-to-earnings. To fully understand why you should be careful with MTW, check out our full research report (it’s free).
Stocks We Like More
The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.
Get started by checking out 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.