3 Stocks Under $10 That Fall Short

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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

Latham (SWIM)

Share Price: $5.38

Started as a family business, Latham (NASDAQ:SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Why Do We Avoid SWIM?

1. Muted 2% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Poor expense management has led to an operating margin of 4.2% that is below the industry average
3. Free cash flow margin is forecasted to grow by 1.5 percentage points in the coming year, potentially giving the company more chips to play with

Latham’s stock price of $5.38 implies a valuation ratio of 24.7x forward P/E. If you’re considering SWIM for your portfolio, see our FREE research report to learn more.

Lucid (LCID)

Share Price: $6.04

Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.

Why Does LCID Give Us Pause?

1. Negative 136% gross margin means it loses money on every sale and must pivot or scale quickly to survive
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Lucid is trading at $6.04 per share, or 0.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than LCID.

Ocular Therapeutix (OCUL)

Share Price: $9.25

Pioneering a drug delivery platform that can eliminate the need for monthly eye injections, Ocular Therapeutix (NASDAQ:OCUL) develops sustained-release treatments for eye diseases using its proprietary ELUTYX bioresorbable hydrogel technology that gradually releases medication.

Why Are We Out on OCUL?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.7% annually over the last two years
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 422.2 percentage points
3. Free cash flow margin dropped by 325.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $9.25 per share, Ocular Therapeutix trades at 41x forward price-to-sales. To fully understand why you should be careful with OCUL, check out our full research report (it’s free).

Stocks We Like More

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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.