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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one stock under $10 that could 100x and two that may have trouble.
Two Stocks Under $10 to Sell:
8x8 (EGHT)
Share Price: $1.92
Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ: EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.
Why Should You Sell EGHT?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 1.3% underwhelmed
- Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
8x8 is trading at $1.92 per share, or 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why EGHT doesn’t pass our bar.
Sweetgreen (SG)
Share Price: $6.94
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE: SG) is a casual quick service chain known for its healthy salads and bowls.
Why Do We Think SG Will Underperform?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Sweetgreen’s stock price of $6.94 implies a valuation ratio of 1.2x forward price-to-sales. If you’re considering SG for your portfolio, see our FREE research report to learn more.
One Stock Under $10 to Watch:
Taboola (TBLA)
Share Price: $3.70
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Why Are We Positive on TBLA?
- Annual revenue growth of 10% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin grew by 8.4 percentage points over the last five years, giving the company more chips to play with
- Historical investments are beginning to pay off as its returns on capital are growing
At $3.70 per share, Taboola trades at 5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
