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 avoid and some other investments you should consider instead.
Bumble (BMBL)
Share Price: $6.28
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.
Why Does BMBL Fall Short?
- Sales trends were unexciting over the last three years as its 7.2% annual growth was below the typical consumer internet company
- Focus on expanding its platform came at the expense of monetization as its average revenue per buyer fell by 4.6% annually
- Estimated sales decline of 9.6% for the next 12 months implies a challenging demand environment
Bumble is trading at $6.28 per share, or 2.3x forward EV/EBITDA. To fully understand why you should be careful with BMBL, check out our full research report (it’s free).
Himax (HIMX)
Share Price: $7.30
Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Why Are We Wary of HIMX?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.5% annually over the last two years
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 15.2 percentage points
At $7.30 per share, Himax trades at 18.6x forward P/E. Check out our free in-depth research report to learn more about why HIMX doesn’t pass our bar.
Evolent Health (EVH)
Share Price: $9.01
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Why Are We Hesitant About EVH?
- Forecasted revenue decline of 4.4% for the upcoming 12 months implies demand will fall off a cliff
- 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
- Negative returns on capital show that some of its growth strategies have backfired
Evolent Health’s stock price of $9.01 implies a valuation ratio of 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than EVH.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.