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. That said, here is one stock under $10 that could 100x and two best left ignored.
Two Stocks Under $10 to Sell:
PacBio (PACB)
Share Price: $1.41
Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness.
Why Does PACB Fall Short?
- Sales tumbled by 8.2% annually over the last two years, showing market trends are working against it during this cycle
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
PacBio’s stock price of $1.41 implies a valuation ratio of 2.7x forward price-to-sales. If you’re considering PACB for your portfolio, see our FREE research report to learn more.
RPC (RES)
Share Price: $5.85
Operating primarily in the Permian Basin with 10 hydraulic fracturing fleets, RPC (NYSE:RES) provides specialized services and equipment like hydraulic fracturing, coiled tubing, and cementing to help oil and gas companies complete and maintain wells.
Why Are We Cautious About RES?
- Gross margin of 28% is below its competitors, leaving less money to invest in exploration and production
- Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 2.9 percentage points
- Low free cash flow margin of 5.4% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
RPC is trading at $5.85 per share, or 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than RES.
One Stock Under $10 to Watch:
MediaAlpha (MAX)
Share Price: $9.39
Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha (NYSE:MAX) operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.
Why Are We Fans of MAX?
- Impressive 57% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Estimated revenue growth of 11.8% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 171% annually over the last two years, massively outpacing its peers
At $9.39 per share, MediaAlpha trades at 7.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.