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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.
Latham (SWIM)
Share Price: $7.15
Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.
Why Is SWIM Risky?
- 8.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Projected 1.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
Latham’s stock price of $7.15 implies a valuation ratio of 41.6x forward P/E. Read our free research report to see why you should think twice about including SWIM in your portfolio.
ChargePoint (CHPT)
Share Price: $8.18
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Are We Hesitant About CHPT?
- Sales tumbled by 15.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
ChargePoint is trading at $8.18 per share, or 0.5x forward price-to-sales. To fully understand why you should be careful with CHPT, check out our full research report (it’s free for active Edge members).
AMC Entertainment (AMC)
Share Price: $2.44
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.
Why Do We Avoid AMC?
- Muted 14% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $2.44 per share, AMC Entertainment trades at 2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AMC doesn’t pass our bar.
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-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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