Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
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.
ADT (ADT)
Share Price: $8.45
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
Why Are We Hesitant About ADT?
- Sluggish trends in its customers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Estimated sales growth of 4.3% for the next 12 months is soft and implies weaker demand
- Underwhelming 5.2% return on capital reflects management’s difficulties in finding profitable growth opportunities
ADT’s stock price of $8.45 implies a valuation ratio of 10x forward P/E. Read our free research report to see why you should think twice about including ADT in your portfolio.
Vestis (VSTS)
Share Price: $6.19
Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.
Why Should You Sell VSTS?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Sales over the last two years were less profitable as its earnings per share fell by 47.5% annually while its revenue was flat
- 6 percentage point decline in its free cash flow margin over the last four years reflects the company’s increased investments to defend its market position
Vestis is trading at $6.19 per share, or 7.9x forward P/E. Check out our free in-depth research report to learn more about why VSTS doesn’t pass our bar.
3D Systems (DDD)
Share Price: $1.78
Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.
Why Should You Dump DDD?
- Annual sales declines of 6.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $1.78 per share, 3D Systems trades at 0.6x forward price-to-sales. To fully understand why you should be careful with DDD, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Trump’s April 2024 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 5 Growth Stocks for this month. 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 Exlservice (+354% 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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