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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.

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.

Under Armour (UAA)

Share Price: $7.11

Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.

Why Should You Dump UAA?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft

2. Low free cash flow margin of -0.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $7.11 per share, Under Armour trades at 19.9x forward P/E. If you’re considering UAA for your portfolio, see our FREE research report to learn more.

ChargePoint (CHPT)

Share Price: $0.77

The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.

Why Do We Think Twice About CHPT?

1. Sales tumbled by 5.6% annually over the last two years, showing market trends are working against its favor during this cycle

2. Negative free cash flow raises questions about the return timeline for its investments

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

ChargePoint is trading at $0.77 per share, or 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CHPT.

WEBTOON (WBTN)

Share Price: $8.89

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

Why Are We Cautious About WBTN?

1. Number of monthly active users has disappointed over the past two years, indicating weak demand for its offerings

2. Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential

3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital