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 bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.
Portillo's (PTLO)
Share Price: $4.96
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ:PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Why Should You Sell PTLO?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Portillo’s stock price of $4.96 implies a valuation ratio of 22.6x forward P/E. Read our free research report to see why you should think twice about including PTLO in your portfolio.
Zevia (ZVIA)
Share Price: $1.33
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.
Why Is ZVIA Not Exciting?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Smaller revenue base of $169.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Historical operating margin losses point to an inefficient cost structure
At $1.33 per share, Zevia trades at 0.5x forward price-to-sales. To fully understand why you should be careful with ZVIA, check out our full research report (it’s free).
American Express Global Business Travel (GBTG)
Share Price: $9.46
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE:GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
Why Are We Hesitant About GBTG?
- Estimated sales growth of 7.8% for the next 12 months implies demand will slow from its two-year trend
- Sky-high servicing costs result in an inferior gross margin of 58.5% that must be offset through increased usage
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.8 percentage points
American Express Global Business Travel is trading at $9.46 per share, or 1.4x forward price-to-sales. If you’re considering GBTG for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.