3 Stocks Under $10 Facing Headwinds

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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

eHealth (EHTH)

Share Price: $4.24

Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.

Why Are We Hesitant About EHTH?

1. Intense competition is diverting traffic from its platform as its estimated membership fell by 1.8% annually
2. Forecasted revenue decline of 3.4% for the upcoming 12 months implies demand will fall off a cliff
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $4.24 per share, eHealth trades at 2.8x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EHTH.

FuelCell Energy (FCEL)

Share Price: $5.77

Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.

Why Are We Wary of FCEL?

1. Backlog growth averaged a weak 6.2% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
2. 31 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

FuelCell Energy’s stock price of $5.77 implies a valuation ratio of 0.6x forward price-to-sales. If you’re considering FCEL for your portfolio, see our FREE research report to learn more.

EVgo (EVGO)

Share Price: $3.76

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Does EVGO Worry Us?

1. Historically negative EPS casts doubt for cautious investors and clouds its long-term earnings prospects
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

EVgo is trading at $3.76 per share, or 32x forward EV-to-EBITDA. To fully understand why you should be careful with EVGO, check out our full research report (it’s free).

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum 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