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. Keeping that in mind, here is one stock under $10 with explosive upside potential and two that may have trouble.
Two Stocks Under $10 to Sell:
Gray Television (GTN)
Share Price: $4.68
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Do We Pass on GTN?
- Sales trends were unexciting over the last five years as its 4.8% annual growth was below the typical consumer discretionary company
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
- 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $4.68 per share, Gray Television trades at 6.1x forward EV-to-EBITDA. To fully understand why you should be careful with GTN, check out our full research report (it’s free).
Ridgepost Capital (RPC)
Share Price: $7.89
Operating as a bridge between institutional investors and hard-to-access private market opportunities, Ridgepost Capital (NYSE:RPC) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Does RPC Fall Short?
- Performance over the past two years shows its incremental sales were less profitable, as its 5.7% annual earnings per share growth trailed its revenue gains
- ROE of 4.5% reflects management’s challenges in identifying attractive investment opportunities
Ridgepost Capital’s stock price of $7.89 implies a valuation ratio of 7.3x forward P/E. If you’re considering RPC for your portfolio, see our FREE research report to learn more.
One Stock Under $10 to Watch:
LegalZoom (LZ)
Share Price: $6.09
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Are We Fans of LZ?
- Subscription Units have grown by 10.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Platform’s growing usage and its ability to increase user spending by 17.2% annually showcases its high switching costs
- Excellent EBITDA margin of 23.1% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
LegalZoom is trading at $6.09 per share, or 4.3x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.