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 is one stock under $10 with explosive upside potential and two that may have trouble.

Two Stocks Under $10 to Sell:

Bloomin' Brands (BLMN)

Share Price: $7.20

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Why Do We Think BLMN Will Underperform?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Sales are projected to tank by 2.4% over the next 12 months as demand evaporates further
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Bloomin' Brands is trading at $7.20 per share, or 5.6x forward P/E. If you’re considering BLMN for your portfolio, see our FREE research report to learn more.

Bark (BARK)

Share Price: $0.88

Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.

Why Do We Avoid BARK?

1. Sales tumbled by 5.3% annually over the last two years, showing consumer trends are working against its favor
2. Poor free cash flow margin of -0.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Bark’s stock price of $0.88 implies a valuation ratio of 133.1x forward EV-to-EBITDA. To fully understand why you should be careful with BARK, check out our full research report (it’s free).

One Stock Under $10 to Watch:

Target Hospitality (TH)

Share Price: $8.79

Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.

Why Are We Positive On TH?

1. Highly efficient business model is illustrated by its impressive 25.9% operating margin
2. Strong free cash flow margin of 23% enables it to reinvest or return capital consistently
3. Improving returns on capital reflect management’s ability to monetize investments

At $8.79 per share, Target Hospitality trades at 34.5x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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-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

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