3 Stocks Under $10 in Hot Water

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.

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. That said, here are three stocks under $10 to avoid and some other investments you should consider instead.

Sprinklr (CXM)

Share Price: $8.41

Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.

Why Do We Think Twice About CXM?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 5.5% average billings growth over the last year was weak
2. Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its three-year trend
3. Efficiency has decreased over the last year as its operating margin fell by 1.6 percentage points

Sprinklr is trading at $8.41 per share, or 2.7x forward price-to-sales. To fully understand why you should be careful with CXM, check out our full research report (it’s free).

Compass (COMP)

Share Price: $6.40

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Why Is COMP Not Exciting?

1. Sluggish trends in its principal agents suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Historical operating losses point to an inefficient cost structure
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.3% for the last two years

Compass’s stock price of $6.40 implies a valuation ratio of 14.8x forward P/E. Check out our free in-depth research report to learn more about why COMP doesn’t pass our bar.

Janus (JBI)

Share Price: $8.42

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.

Why Do We Think JBI Will Underperform?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Forecasted revenue decline of 4.9% for the upcoming 12 months implies demand will fall even further
3. Incremental sales over the last four years were much less profitable as its earnings per share fell by 15.3% annually while its revenue grew

At $8.42 per share, Janus trades at 6.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JBI in your portfolio.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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.