Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. That said, here is one stock under $10 that could 100x and two that may have trouble.
Two Stocks Under $10 to Sell:
Quest Resource (QRHC)
Share Price: $2.15
Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.
Why Do We Steer Clear of QRHC?
- Annual sales declines of 3.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $2.15 per share, Quest Resource trades at 54x forward P/E. Dive into our free research report to see why there are better opportunities than QRHC.
GoodRx (GDRX)
Share Price: $2.29
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
Why Do We Pass on GDRX?
- Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
- Smaller revenue base of $800.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Negative returns on capital show that some of its growth strategies have backfired
GoodRx is trading at $2.29 per share, or 6x forward P/E. To fully understand why you should be careful with GDRX, check out our full research report (it’s free).
One Stock Under $10 to Watch:
Clover Health (CLOV)
Share Price: $2.26
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Does CLOV Catch Our Eye?
- Average customer growth of 10.3% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 65% annually
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
Clover Health’s stock price of $2.26 implies a valuation ratio of 32.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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.
