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 is one stock under $10 that could 100x and two that may have trouble.
Two Stocks Under $10 to Sell:
Sportsman's Warehouse (SPWH)
Share Price: $1.37
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Why Are We Out on SPWH?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Issuance of new shares over the last three years caused its earnings per share to fall by 32.6% annually, even worse than its revenue declines
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $1.37 per share, Sportsman's Warehouse trades at 24.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SPWH doesn’t pass our bar.
Concrete Pumping (BBCP)
Share Price: $7.05
Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Do We Pass on BBCP?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Earnings per share have contracted by 37.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin shrank by 7.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Concrete Pumping’s stock price of $7.05 implies a valuation ratio of 53.7x forward P/E. Dive into our free research report to see why there are better opportunities than BBCP.
One Stock Under $10 to Watch:
agilon health (AGL)
Share Price: $0.72
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Are We Positive On AGL?
- Annual revenue growth of 37.2% over the past five years was outstanding, reflecting market share gains this cycle
- Average customer growth of 19.9% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
agilon health is trading at $0.72 per share, or 0x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% 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.