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 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 explosive upside potential and two best left ignored.
Two Stocks Under $10 to Sell:
Quest Resource (QRHC)
Share Price: $1.39
Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.
Why Do We Avoid QRHC?
- Annual sales declines of 6.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Low free cash flow margin of -0.4% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $1.39 per share, Quest Resource trades at 7.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why QRHC doesn’t pass our bar.
Clean Energy Fuels (CLNE)
Share Price: $1.64
Operating the largest network of natural gas fueling stations in North America with over 600 locations, Clean Energy Fuels (NASDAQ: CLNE) supplies renewable natural gas and conventional natural gas as fuel for commercial vehicle fleets.
Why Do We Pass on CLNE?
- Modest revenue base of $442.4 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 26.8% reflects its high production costs and unfavorable asset base
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Clean Energy Fuels is trading at $1.64 per share, or 6.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CLNE in your portfolio.
One Stock Under $10 to Watch:
Custom Truck One Source (CTOS)
Share Price: $9.35
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Why Do We Like CTOS?
- Impressive 14.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 41% exceeded its revenue gains over the last two years
Custom Truck One Source’s stock price of $9.35 implies a valuation ratio of 42.2x 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
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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.
