Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
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. That said, here is one stock under $10 with huge potential and two that may have trouble.
Two Stocks Under $10 to Sell:
Tilly's (TLYS)
Share Price: $4.34
With an emphasis on skate and surf culture, Tilly’s (NYSE:TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.
Why Do We Steer Clear of TLYS?
- Store closures demonstrate a defensive approach to eliminating underperforming locations
- Persistent operating margin losses suggest the business manages its expenses poorly
Tilly's is trading at $4.34 per share, or 35.5x forward P/E. Dive into our free research report to see why there are better opportunities than TLYS.
Latham (SWIM)
Share Price: $6.40
Started as a family business, Latham (NASDAQ:SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.
Why Do We Pass on SWIM?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Projected 8.3 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
- Rising returns on capital show management is making relatively better investments
Latham’s stock price of $6.40 implies a valuation ratio of 24.8x forward P/E. If you’re considering SWIM for your portfolio, see our FREE research report to learn more.
One Stock Under $10 to Watch:
FTAI Infrastructure (FIP)
Share Price: $2.84
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Does FIP Stand Out?
- Annual revenue growth of 41.4% over the last two years was superb and indicates its market share increased during this cycle
- Expected revenue growth of 14.9% for the next year suggests its market share will rise
- Above-average gross margin of 30.1% gives it the ability to invest in R&D and run marketing campaigns
At $2.84 per share, FTAI Infrastructure trades at 8.3x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.