3 Stocks Under $10 We Find Risky

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 swipe left on and some alternatives you should look into instead.

Opendoor (OPEN)

Share Price: $9.33

Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Why Should You Dump OPEN?

1. Performance surrounding its homes purchased has lagged its peers
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes

Opendoor’s stock price of $9.33 implies a valuation ratio of 1.5x forward price-to-sales. If you’re considering OPEN for your portfolio, see our FREE research report to learn more.

Arhaus (ARHS)

Share Price: $9.30

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 Are We Wary of ARHS?

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. Modest revenue base of $1.36 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

At $9.30 per share, Arhaus trades at 20.3x forward P/E. Check out our free in-depth research report to learn more about why ARHS doesn’t pass our bar.

Petco (WOOF)

Share Price: $3.08

Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming.

Why Is WOOF Risky?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Earnings per share have contracted by 33.8% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Petco is trading at $3.08 per share, or 18.1x forward P/E. To fully understand why you should be careful with WOOF, check out our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 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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