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3 Stocks Under $10 in the Doghouse
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 swipe left on and some alternatives you should look into instead.
The Real Brokerage (REAX)
Share Price: $4.31
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Why Do We Pass on REAX?
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 9% annually while its revenue grew
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last two years
The Real Brokerage’s stock price of $4.31 implies a valuation ratio of 16.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than REAX.
Myriad Genetics (MYGN)
Share Price: $5.30
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Why Do We Steer Clear of MYGN?
- Sales trends were unexciting over the last five years as its 1.8% annual growth was below the typical healthcare company
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 28.9% annually
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
Myriad Genetics is trading at $5.30 per share, or 41.5x forward P/E. Check out our free in-depth research report to learn more about why MYGN doesn’t pass our bar.
Evolent Health (EVH)
Share Price: $8.11
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 are projected to tank by 10.2% over the next 12 months as demand evaporates
- Poor free cash flow margin of 0.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Negative returns on capital show that some of its growth strategies have backfired
At $8.11 per share, Evolent Health trades at 14.6x forward P/E. If you’re considering EVH for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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 9 Market-Beating Stocks. 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.