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1 Stock Under $10 with Competitive Advantages and 2 Facing Headwinds

LZ Cover Image

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 with huge potential and two best left ignored.

Two Stocks Under $10 to Sell:

Getty Images (GETY)

Share Price: $1.61

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Are We Cautious About GETY?

  1. Annual revenue growth of 1.3% over the last two years was below our standards for the business services sector
  2. 11.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $1.61 per share, Getty Images trades at 23.2x forward P/E. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.

Caleres (CAL)

Share Price: $11.66

The owner of Dr. Scholl's, Caleres (NYSE: CAL) is a footwear company offering a range of styles.

Why Are We Out on CAL?

  1. Lackluster 2.1% annual revenue growth over the last five years indicates the company is losing ground to competitors
  2. Poor free cash flow margin of 2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Caleres is trading at $11.66 per share, or 4.8x forward P/E. To fully understand why you should be careful with CAL, check out our full research report (it’s free for active Edge members).

One Stock Under $10 to Watch:

LegalZoom (LZ)

Share Price: $9.41

Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.

Why Does LZ Stand Out?

  1. Subscription Units are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 109% exceeded its revenue gains over the last three years
  3. Free cash flow margin grew by 17.1 percentage points over the last few years, giving the company more chips to play with

LegalZoom’s stock price of $9.41 implies a valuation ratio of 8.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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