3 Stocks Under $10 We Steer Clear Of

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 avoid and some other investments you should consider instead.

Yext (YEXT)

Share Price: $8.97

Built to solve the problem of inconsistent business information scattered across the internet, Yext (NYSE:YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps, and search engines.

Why Are We Wary of YEXT?

1. Customers were hesitant to make long-term commitments to its software as its 8.8% average ARR growth over the last year was sluggish
2. Anticipated sales growth of 4.7% for the next year implies demand will be shaky
3. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment

Yext is trading at $8.97 per share, or 2.6x forward price-to-sales. To fully understand why you should be careful with YEXT, check out our full research report (it’s free).

Skillz (SKLZ)

Share Price: $8.58

Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.

Why Do We Avoid SKLZ?

1. Value proposition isn’t resonating strongly as its paying monthly active users averaged 24.5% drops over the last two years
2. Cash burn has widened over the last few years, making us question whether it can reliably generate shareholder value
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Skillz’s stock price of $8.58 implies a valuation ratio of 1.3x forward price-to-gross profit. Read our free research report to see why you should think twice about including SKLZ in your portfolio.

Sweetgreen (SG)

Share Price: $9.39

Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls.

Why Does SG Worry Us?

1. Historical operating margin losses point to an inefficient cost structure
2. 7.3 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $9.39 per share, Sweetgreen trades at 27.1x forward EV-to-EBITDA. If you’re considering SG for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% 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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