3 Stocks Under $10 with Warning Signs

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.

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 avoid and some other investments you should consider instead.

Custom Truck One Source (CTOS)

Share Price: $6.16

Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment.

Why Are We Cautious About CTOS?

1. 4.1% annual revenue growth over the last two years was slower than its industrials peers
2. Earnings per share have contracted by 52% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Free cash flow margin dropped by 24.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $6.16 per share, Custom Truck One Source trades at 63.7x forward P/E. Check out our free in-depth research report to learn more about why CTOS doesn’t pass our bar.

LifeStance Health Group (LFST)

Share Price: $3.72

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

Why Is LFST Not Exciting?

1. Subscale operations are evident in its revenue base of $1.28 billion, meaning it has fewer distribution channels than its larger rivals
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Negative returns on capital show management lost money while trying to expand the business

LifeStance Health Group is trading at $3.72 per share, or 49.8x forward P/E. If you’re considering LFST for your portfolio, see our FREE research report to learn more.

Dun & Bradstreet (DNB)

Share Price: $9.11

Known for its proprietary D-U-N-S Number that serves as a unique identifier for businesses worldwide, Dun & Bradstreet (NYSE:DNB) provides business decisioning data and analytics that help companies evaluate credit risks, verify suppliers, enhance sales productivity, and gain market visibility.

Why Are We Out on DNB?

1. Muted 3.7% annual revenue growth over the last two years shows its demand lagged behind its business services peers
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 5 percentage points
3. Earnings per share were flat over the last four years and fell short of the peer group average

Dun & Bradstreet’s stock price of $9.11 implies a valuation ratio of 8.5x forward P/E. To fully understand why you should be careful with DNB, check out our full research report (it’s free).

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 5 Growth Stocks for this month. 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).

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