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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Sprinklr (CXM)
Share Price: $8.75
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE: CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Why Do We Think CXM Will Underperform?
- Average billings growth of 4% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its three-year trend
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 3.6 percentage points
Sprinklr’s stock price of $8.75 implies a valuation ratio of 2.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CXM.
Shoals (SHLS)
Share Price: $6.56
Started in Huntsville, Alabama, Shoals (NASDAQ: SHLS) designs and manufactures products that make solar energy systems work more efficiently.
Why Should You Dump SHLS?
- Backlog growth averaged a weak 3.3% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.8 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Shoals is trading at $6.56 per share, or 14.8x forward P/E. Check out our free in-depth research report to learn more about why SHLS doesn’t pass our bar.
FuelCell Energy (FCEL)
Share Price: $4.38
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Is FCEL Not Exciting?
- Average backlog growth of 6.2% over the past two years was mediocre and suggests fewer customers signed long-term contracts
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 31 percentage points
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $4.38 per share, FuelCell Energy trades at 0.5x forward price-to-sales. Read our free research report to see why you should think twice about including FCEL in your portfolio.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 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-micro-cap company Kadant (+351% 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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