Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts. But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
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 avoid and some other investments you should consider instead.
ChargePoint (CHPT)
Share Price: $10.20
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Are We Wary of CHPT?
- Annual sales declines of 1% for the past two years show its products and services struggled to connect with the market during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
ChargePoint’s stock price of $10.20 implies a valuation ratio of 0.5x forward price-to-sales. Check out our free in-depth research report to learn more about why CHPT doesn’t pass our bar.
SoundHound AI (SOUN)
Share Price: $6.06
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ: SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
Why Are We Cautious About SOUN?
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $6.06 per share, SoundHound AI trades at 8.4x forward price-to-sales. To fully understand why you should be careful with SOUN, check out our full research report (it’s free).
Core Laboratories (CLB)
Share Price: $9.71
With roots dating back to the first commercial oil boom, Core Laboratories (NYSE: CLB) analyzes rock and fluid samples from oil and gas reservoirs to help energy companies optimize production and recovery.
Why Are We Out on CLB?
- Annual revenue growth of 3.1% over the last five years was below our standards for the energy upstream and integrated energy sector
- Subscale operations are evident in its revenue base of $519.2 million, meaning it has fewer distribution channels than its larger rivals
- Costly operations and weak unit economics result in an inferior gross margin of 20.3% that must be offset through higher production volumes
Core Laboratories is trading at $9.71 per share, or 15.2x forward P/E. Dive into our free research report to see why there are better opportunities than CLB.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
