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 is one stock under $10 that could 100x and two that could be down big.
Two Stocks Under $10 to Sell:
Yext (YEXT)
Share Price: $8.82
Built to solve the problem of inconsistent business information scattered across the internet, Yext (NYSE:YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps, and search engines.
Why Do We Pass on YEXT?
- ARR growth averaged a weak 9.1% over the last year, suggesting that competition is pulling some attention away from its software
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.4 percentage points
At $8.82 per share, Yext trades at 2.5x forward price-to-sales. If you’re considering YEXT for your portfolio, see our FREE research report to learn more.
Pangaea (PANL)
Share Price: $7.03
Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Why Does PANL Worry Us?
- Gross margin of 19.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share have contracted by 33.6% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Low free cash flow margin of 0.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Pangaea’s stock price of $7.03 implies a valuation ratio of 6.7x forward P/E. Dive into our free research report to see why there are better opportunities than PANL.
One Stock Under $10 to Watch:
Arcos Dorados (ARCO)
Share Price: $7.71
Translating to “Golden Arches” in Spanish, Arcos Dorados (NYSE:ARCO) is the master franchisee of the McDonald's brand in Latin America and the Caribbean, responsible for its operations and growth in over 20 countries.
Why Are We Positive On ARCO?
- Restaurant expansion strategy is justified by its healthy same-store sales
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 23.1% over the past two years
- $4.56 billion in revenue gives its scale, which leads to bargaining power with suppliers and retailers
Arcos Dorados is trading at $7.71 per share, or 4.3x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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 Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.