3 Stocks Under $10 with Questionable Fundamentals

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. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

Arhaus (ARHS)

Share Price: $9.02

With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ:ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.

Why Do We Think Twice About ARHS?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Revenue base of $1.29 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5 percentage points

At $9.02 per share, Arhaus trades at 17.9x forward P/E. To fully understand why you should be careful with ARHS, check out our full research report (it’s free).

BeautyHealth (SKIN)

Share Price: $1.61

Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.

Why Should You Dump SKIN?

1. Annual revenue growth of 3.8% over the last three years was below our standards for the consumer staples sector
2. Poor expense management has led to operating margin losses
3. High net-debt-to-EBITDA ratio of 10× could force the company to raise capital at unfavorable terms if market conditions deteriorate

BeautyHealth’s stock price of $1.61 implies a valuation ratio of 12.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SKIN.

Owens & Minor (OMI)

Share Price: $7.26

With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE:OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients.

Why Is OMI Not Exciting?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.2% over the last two years was below our standards for the healthcare sector
2. Underwhelming 3.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Owens & Minor is trading at $7.26 per share, or 4x forward P/E. Check out our free in-depth research report to learn more about why OMI doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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