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. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Teladoc (TDOC)
Share Price: $7.83
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Wary of TDOC?
- 4.4% annual revenue growth over the last three years was slower than its consumer internet peers
- Decision to emphasize platform growth over monetization has contributed to 7.1% annual declines in its average revenue per user
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
Teladoc’s stock price of $7.83 implies a valuation ratio of 4.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TDOC.
Vimeo (VMEO)
Share Price: $4.16
Originally launched in 2004 as a platform for filmmakers seeking a high-quality alternative to YouTube, Vimeo (NASDAQ: VMEO) provides cloud-based video creation, editing, hosting, and distribution software that helps businesses and creators make, manage, and share professional-quality videos.
Why Are We Cautious About VMEO?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Smaller revenue base of $415.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Push for growth has led to negative returns on capital, signaling value destruction
Vimeo is trading at $4.16 per share, or 22.8x forward EV-to-EBITDA. To fully understand why you should be careful with VMEO, check out our full research report (it’s free).
AGNC Investment (AGNC)
Share Price: $9.80
Born during the 2008 financial crisis when mortgage markets were in turmoil, AGNC Investment (NASDAQ: AGNC) is a real estate investment trust that primarily invests in mortgage-backed securities guaranteed by U.S. government agencies or enterprises.
Why Do We Steer Clear of AGNC?
- Net interest income tumbled by 28.5% annually over the last five years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 6.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Tangible book value per share tumbled by 12.1% annually over the last five years, showing banking sector trends are working against its favor during this cycle
At $9.80 per share, AGNC Investment trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including AGNC in your portfolio.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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 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
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