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 are three stocks under $10 to avoid and some other investments you should consider instead.
Marqeta (MQ)
Share Price: $6.18
Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ: MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards.
Why Are We Wary of MQ?
- Products and services have few die-hard fans as sales have declined by 4.7% annually over the last three years
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $6.18 per share, Marqeta trades at 4.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MQ.
Brookdale (BKD)
Share Price: $7.33
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Do We Think Twice About BKD?
- Annual sales declines of 3.8% for the past five years show its products and services struggled to connect with the market during this cycle
- ROIC of -0.5% reflects management’s challenges in identifying attractive investment opportunities
- 12× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Brookdale is trading at $7.33 per share, or 3.8x forward EV-to-EBITDA. If you’re considering BKD for your portfolio, see our FREE research report to learn more.
GoodRx (GDRX)
Share Price: $3.58
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 Do We Think GDRX Will Underperform?
- Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
- Modest revenue base of $799.9 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Push for growth has led to negative returns on capital, signaling value destruction
GoodRx’s stock price of $3.58 implies a valuation ratio of 8.4x forward P/E. Read our free research report to see why you should think twice about including GDRX in your portfolio.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Comfort Systems (+782% 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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