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 swipe left on and some alternatives you should look into instead.
Sabre (SABR)
Share Price: $3.08
Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.
Why Do We Think SABR Will Underperform?
- Performance surrounding its central reservation system transactions has lagged its peers
- Low free cash flow margin of -0.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Sabre is trading at $3.08 per share, or 16.7x forward P/E. Dive into our free research report to see why there are better opportunities than SABR.
Smith & Wesson (SWBI)
Share Price: $7.95
With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.
Why Do We Steer Clear of SWBI?
- Annual sales declines of 2.2% for the past five years show its products and services struggled to connect with the market
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Cash-burning history makes us doubt the long-term viability of its business model
At $7.95 per share, Smith & Wesson trades at 17.5x forward P/E. If you’re considering SWBI for your portfolio, see our FREE research report to learn more.
Offerpad (OPAD)
Share Price: $3.25
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Are We Out on OPAD?
- Sluggish trends in its homes purchased suggest customers aren’t adopting its solutions as quickly as the company hoped
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
Offerpad’s stock price of $3.25 implies a valuation ratio of 0.1x forward price-to-sales. Check out our free in-depth research report to learn more about why OPAD doesn’t pass our bar.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2024, 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-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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