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. That said, here is one stock under $10 with huge potential and two best left ignored.
Two Stocks Under $10 to Sell:
Petco (WOOF)
Share Price: $2.85
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 Should You Sell WOOF?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Performance over the past three years was negatively impacted by new share issuances as its earnings per share fell by 34.5% annually while its revenue was flat
- 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $2.85 per share, Petco trades at 12.1x forward P/E. Read our free research report to see why you should think twice about including WOOF in your portfolio.
GoodRx (GDRX)
Share Price: $2.63
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
Why Is GDRX Risky?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Subscale operations are evident in its revenue base of $787.9 million, meaning it has fewer distribution channels than its larger rivals
- Push for growth has led to negative returns on capital, signaling value destruction
GoodRx is trading at $2.63 per share, or 7.9x forward P/E. Dive into our free research report to see why there are better opportunities than GDRX.
One Stock Under $10 to Watch:
FTAI Infrastructure (FIP)
Share Price: $4.75
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Do We Like FIP?
- Market share has increased this cycle as its 35% annual revenue growth over the last two years was exceptional
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
FTAI Infrastructure’s stock price of $4.75 implies a valuation ratio of 13.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even 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 (+1,326% between June 2020 and June 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.
