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. That said, here are three stocks under $10 to avoid and some other investments you should consider instead.
Bloomin' Brands (BLMN)
Share Price: $7.66
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Do We Avoid BLMN?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $7.66 per share, Bloomin' Brands trades at 8x forward P/E. Check out our free in-depth research report to learn more about why BLMN doesn’t pass our bar.
Sabre (SABR)
Share Price: $1.36
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Why Do We Pass on SABR?
- Performance surrounding its central reservation system transactions has lagged its peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Sabre is trading at $1.36 per share, or 11.6x forward P/E. To fully understand why you should be careful with SABR, check out our full research report (it’s free).
EVgo (EVGO)
Share Price: $3.12
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
Why Are We Wary of EVGO?
- Poor expense management has led to operating margin losses
- Negative free cash flow raises questions about the return timeline for its investments
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
EVgo’s stock price of $3.12 implies a valuation ratio of 11.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including EVGO in your portfolio.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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.