3 Stocks Under $10 We Steer Clear Of

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.

Leslie's (LESL)

Share Price: $0.28

Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.

Why Are We Out on LESL?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 8.9 percentage points
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Leslie’s stock price of $0.28 implies a valuation ratio of 0.6x forward EV-to-EBITDA. If you’re considering LESL for your portfolio, see our FREE research report to learn more.

Clarus (CLAR)

Share Price: $3.16

Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Why Do We Steer Clear of CLAR?

1. Sales tumbled by 10.6% annually over the last two years, showing consumer trends are working against its favor
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $3.16 per share, Clarus trades at 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than CLAR.

Enviri (NVRI)

Share Price: $8.86

Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE:NVRI) offers steel and waste handling services.

Why Do We Avoid NVRI?

1. Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical industrials company
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Enviri is trading at $8.86 per share, or 2.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including NVRI in your portfolio.

High-Quality Stocks for All Market Conditions

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Don’t let fear keep you from great opportunities and take a look at 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).

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