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 swipe left on and some alternatives you should look into instead.
Optimum Communications (OPTU)
Share Price: $1.62
Based in Long Island City, Optimum Communications (NYSE: OPTU) is a telecommunications company offering cable, internet, telephone, and television services across the United States.
Why Should You Sell OPTU?
- Sluggish trends in its broadband subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Optimum Communications’s stock price of $1.62 implies a valuation ratio of 7.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including OPTU in your portfolio.
Inspired (INSE)
Share Price: $8.70
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Are We Out on INSE?
- Sales trends were unexciting over the last five years as its 9.6% annual growth was below the typical consumer discretionary company
- Poor expense management has led to an operating margin of 9.6% that is below the industry average
- Low free cash flow margin of 2.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Inspired is trading at $8.70 per share, or 14.6x forward P/E. If you’re considering INSE for your portfolio, see our FREE research report to learn more.
Western Union (WU)
Share Price: $9.36
With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.
Why Do We Think WU Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last five years
- Earnings per share have contracted by 1.1% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
At $9.36 per share, Western Union trades at 5.3x forward P/E. Check out our free in-depth research report to learn more about why WU 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 9 Market-Beating Stocks. 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.
