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.
Under Armour (UAA)
Share Price: $7.11
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Should You Dump UAA?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Low free cash flow margin of -0.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $7.11 per share, Under Armour trades at 19.9x forward P/E. To fully understand why you should be careful with UAA, check out our full research report (it’s free).
ChargePoint (CHPT)
Share Price: $0.77
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Do We Think Twice About CHPT?
- Sales tumbled by 5.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
ChargePoint is trading at $0.77 per share, or 0.8x forward price-to-sales. If you’re considering CHPT for your portfolio, see our FREE research report to learn more.
WEBTOON (WBTN)
Share Price: $8.89
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Why Are We Cautious About WBTN?
- Number of monthly active users has disappointed over the past two years, indicating weak demand for its offerings
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
WEBTOON’s stock price of $8.89 implies a valuation ratio of 21.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than WBTN.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
