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 avoid and some other investments you should consider instead.
Blink Charging (BLNK)
Share Price: $0.84
One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Cautious About BLNK?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.9% annually over the last two years
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Blink Charging is trading at $0.84 per share, or 0.7x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it’s free).
PacBio (PACB)
Share Price: $2.57
Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness.
Why Is PACB Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.5% annually over the last two years
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
PacBio’s stock price of $2.57 implies a valuation ratio of 4.4x forward price-to-sales. If you’re considering PACB 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 Are We Out on WU?
- 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 5.4x forward P/E. Dive into our free research report to see why there are better opportunities than WU.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 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.