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 avoid and some other investments you should consider instead.
Upland (UPLD)
Share Price: $2.34
Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ: UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.
Why Should You Sell UPLD?
- Sales tumbled by 3.1% annually over the last three years, showing industry trends like AI are working against its favor
- Projected sales decline of 12.2% over the next 12 months indicates demand will continue deteriorating
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
At $2.34 per share, Upland trades at 0.3x forward price-to-sales. If you’re considering UPLD for your portfolio, see our FREE research report to learn more.
Herbalife (HLF)
Share Price: $6.85
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Are We Wary of HLF?
- Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Earnings per share have dipped by 22% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Herbalife is trading at $6.85 per share, or 3.4x forward P/E. Dive into our free research report to see why there are better opportunities than HLF.
Blink Charging (BLNK)
Share Price: $0.74
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Hesitant About BLNK?
- Earnings per share fell by 10.2% annually over the last five years while its revenue grew, partly because it diluted shareholders
- 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
Blink Charging’s stock price of $0.74 implies a valuation ratio of 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including BLNK in your portfolio.
Stocks That Overcame Trump’s 2018 Tariffs
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
