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.
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.
AMC Networks (AMCX)
Share Price: $9.74
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Do We Think AMCX Will Underperform?
- Annual revenue declines of 3.9% over the last five years indicate problems with its market positioning
- Free cash flow margin is on track to jump by 1.4 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $9.74 per share, AMC Networks trades at 4.6x forward P/E. Read our free research report to see why you should think twice about including AMCX in your portfolio.
Icahn Enterprises (IEP)
Share Price: $7.68
Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.
Why Does IEP Fall Short?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.6% annually over the last two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Icahn Enterprises’s stock price of $7.68 implies a valuation ratio of 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than IEP.
Evolent Health (EVH)
Share Price: $4.05
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Why Do We Think Twice About EVH?
- Sales trends were unexciting over the last two years as its 7.1% annual growth was below the typical healthcare company
- Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Evolent Health is trading at $4.05 per share, or 17.2x forward P/E. Check out our free in-depth research report to learn more about why EVH doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
