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3 Stocks Under $10 That Concern Us


Radek Strnad /
2026/02/15 11:38 pm EST

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

PagerDuty (PD)

Share Price: $7.00

Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE:PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.

Why Does PD Give Us Pause?

  1. Offerings struggled to generate meaningful interest as its average billings growth of 3.8% over the last year did not impress
  2. Estimated sales growth of 2.7% for the next 12 months implies demand will slow from its two-year trend
  3. Persistent operating margin losses suggest the business manages its expenses poorly

At $7.00 per share, PagerDuty trades at 1.3x forward price-to-sales. Read our free research report to see why you should think twice about including PD in your portfolio.

Himax (HIMX)

Share Price: $7.73

Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.

Why Is HIMX Risky?

  1. Sales tumbled by 1.3% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
  3. High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Himax is trading at $7.73 per share, or 32.3x forward P/E. If you’re considering HIMX for your portfolio, see our FREE research report to learn more.

Frontier (ULCC)

Share Price: $5.35

Recognizable for the colorful animals adorning each aircraft tail, Frontier Group Holdings (NASDAQ:ULCC) is an ultra low-cost airline that provides budget-friendly flights throughout the United States and select international destinations in the Americas.

Why Do We Steer Clear of ULCC?

  1. Sales trends were unexciting over the last two years as its 1.9% annual growth was below the typical consumer discretionary company
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Frontier’s stock price of $5.35 implies a valuation ratio of 4.3x forward EV-to-EBITDA. To fully understand why you should be careful with ULCC, check out our full research report (it’s free).

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 5 Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.