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.
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 avoid and some other investments you should consider instead.
Bumble (BMBL)
Share Price: $2.82
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Is BMBL Not Exciting?
- Intense competition is diverting traffic from its platform as its paying users fell by 6.5% annually
- Key performance metrics have been flashing red recently as its average revenue per buyer dropped by 9.8% annually while engagement was weak
- Sales are projected to tank by 9.2% over the next 12 months as its demand continues evaporating
Bumble is trading at $2.82 per share, or 2.8x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than BMBL.
Offerpad (OPAD)
Share Price: $4.19
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 Do We Think OPAD Will Underperform?
- Performance surrounding its homes sold has lagged its peers
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
At $4.19 per share, Offerpad trades at 0x forward price-to-sales. Check out our free in-depth research report to learn more about why OPAD doesn’t pass our bar.
Western Union (WU)
Share Price: $7.41
With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.
Why Are We Out on WU?
- Annual sales declines of 3.2% for the past five years show its products and services struggled to connect with the market during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 5.3% annually, worse than its revenue declines
Western Union’s stock price of $7.41 implies a valuation ratio of 5x forward P/E. Read our free research report to see why you should think twice about including WU in your portfolio.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
