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 downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
PagerDuty (PD)
Share Price: $7.34
Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE:PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.
Why Do We Avoid PD?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 2.5% underwhelmed
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Free cash flow margin is forecasted to shrink by 2.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
PagerDuty’s stock price of $7.34 implies a valuation ratio of 1.2x forward price-to-sales. To fully understand why you should be careful with PD, check out our full research report (it’s free).
Leslie's (LESL)
Share Price: $1.50
Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.
Why Do We Steer Clear of LESL?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 32.9% annually, worse than its revenue
At $1.50 per share, Leslie's trades at 18.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LESL doesn’t pass our bar.
NN (NNBR)
Share Price: $2.64
Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
Why Should You Dump NNBR?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
NN is trading at $2.64 per share, or 15.3x forward P/E. If you’re considering NNBR for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.