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. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.
PubMatic (PUBM)
Share Price: $9
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ: PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
Why Do We Steer Clear of PUBM?
- Below-average net revenue retention rate of 107% suggests it has some trouble expanding within existing accounts
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 8.4 percentage points over the next year
PubMatic’s stock price of $9 implies a valuation ratio of 1.5x forward price-to-sales. Check out our free in-depth research report to learn more about why PUBM doesn’t pass our bar.
Mister Car Wash (MCW)
Share Price: $5.35
Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.
Why Should You Dump MCW?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Returns on capital are increasing as management makes relatively better investment decisions
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Mister Car Wash is trading at $5.35 per share, or 11.5x forward P/E. Read our free research report to see why you should think twice about including MCW in your portfolio.
AdaptHealth (AHCO)
Share Price: $9.66
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
Why Are We Hesitant About AHCO?
- Sales trends were unexciting over the last two years as its 2.1% annual growth was below the typical healthcare company
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 1.3% annually
- ROIC of 1.3% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $9.66 per share, AdaptHealth trades at 11.3x forward P/E. To fully understand why you should be careful with AHCO, check out our full research report (it’s free for active Edge members).
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Exlservice (+354% 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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