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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Beyond Meat (BYND)
Share Price: $0.89
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Why Are We Out on BYND?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Free cash flow margin shrank by 16.7 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Beyond Meat’s stock price of $0.89 implies a valuation ratio of 0.2x forward price-to-sales. To fully understand why you should be careful with BYND, check out our full research report (it’s free for active Edge members).
Smith & Wesson (SWBI)
Share Price: $10.16
With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.
Why Is SWBI Risky?
- Annual sales declines of 10.2% for the past five years show its products and services struggled to connect with the market
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.1% for the last two years
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $10.16 per share, Smith & Wesson trades at 35.2x forward P/E. Dive into our free research report to see why there are better opportunities than SWBI.
RE/MAX (RMAX)
Share Price: $7.40
Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.
Why Do We Think RMAX Will Underperform?
- Number of agents has disappointed over the past two years, indicating weak demand for its offerings
- Earnings per share fell by 7.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Projected 8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
RE/MAX is trading at $7.40 per share, or 5.9x forward P/E. Check out our free in-depth research report to learn more about why RMAX doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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 Comfort Systems (+782% 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.
