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 avoid and some other investments you should consider instead.
Upland Software (UPLD)
Share Price: $4.75
Operating under the mantra "land and expand," Upland Software (NASDAQ: UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Why Do We Steer Clear of UPLD?
- Offerings couldn’t generate interest over the last year as its billings have averaged 25.1% declines
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Upland Software’s stock price of $4.75 implies a valuation ratio of 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than UPLD.
Sweetgreen (SG)
Share Price: $9.28
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE: SG) is a casual quick service chain known for its healthy salads and bowls.
Why Is SG Risky?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 8.7 percentage points
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Sweetgreen is trading at $9.28 per share, or 162.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SG in your portfolio.
AMC Entertainment (AMC)
Share Price: $1.93
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.
Why Are We Out on AMC?
- Muted 2.3% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
At $1.93 per share, AMC Entertainment trades at 13.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AMC doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
