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.
Skillz (SKLZ)
Share Price: $7.04
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Why Do We Steer Clear of SKLZ?
- Paying Monthly Active Users have declined by 33.6% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Suboptimal cost structure is highlighted by its history of EBITDA margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
Skillz is trading at $7.04 per share, or 1.4x forward price-to-gross profit. To fully understand why you should be careful with SKLZ, check out our full research report (it’s free).
GoPro (GPRO)
Share Price: $0.72
Known for sponsoring extreme athletes, GoPro (NASDAQ: GPRO) is a camera company known for its POV videos and editing software.
Why Is GPRO Risky?
- Annual revenue declines of 6.1% over the last five years indicate problems with its market positioning
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $0.72 per share, GoPro trades at 11.1x forward P/E. Read our free research report to see why you should think twice about including GPRO in your portfolio.
Zevia (ZVIA)
Share Price: $3.15
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?
- Lackluster 2% annual revenue growth over the last three years indicates the company is losing ground to competitors
- Earnings per share fell by 27.1% annually over the last three years while its revenue grew, partly because it diluted shareholders
- Negative free cash flow raises questions about the return timeline for its investments
Zevia’s stock price of $3.15 implies a valuation ratio of 1.4x forward price-to-sales. If you’re considering ZVIA for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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
