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 bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. That said, here are three stocks under $10 to avoid and some other investments you should consider instead.
Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Annual revenue growth of 3.7% over the last two years was below our standards for the industrials sector
Issuance of new shares over the last five years caused its earnings per share to fall by 3.1% annually while its revenue grew
Eroding returns on capital from an already low base indicate that management's recent investments are destroying value
At $4.48 per share, Array trades at 6.2x forward P/E. To fully understand why you should be careful with ARRY, check out our full research report (it's free).
Acquiring Goodyear's farm tire business in 2005, Titan (NYSE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
1.7% annual revenue growth over the last two years was slower than its industrials peers
Eroding returns on capital suggest its historical profit centers are aging
High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Titan International's stock price of $7.62 implies a valuation ratio of 9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TWI.
Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
Customers postponed purchases of its products and services this cycle as its revenue declined by 5.8% annually over the last five years
Issuance of new shares over the last five years caused its earnings per share to fall by 22.2% annually, even worse than its revenue declines
Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions
Commercial Vehicle Group is trading at $3.06 per share, or 26.4x forward P/E. If you're considering CVGI for your portfolio, see our FREE research report to learn more.
WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.