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 downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.

The Real Brokerage (REAX)

Share Price: $4.31

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

Why Do We Pass on REAX?

1. Suboptimal cost structure is highlighted by its history of operating margin losses

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 9% annually while its revenue grew

3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last two years

The Real Brokerage’s stock price of $4.31 implies a valuation ratio of 16.4x forward EV-to-EBITDA. To fully understand why you should be careful with REAX, check out our full research report (it’s free).

Myriad Genetics (MYGN)

Share Price: $5.30

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Why Do We Steer Clear of MYGN?

1. Sales trends were unexciting over the last five years as its 1.8% annual growth was below the typical healthcare company

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 28.9% annually

3. Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up

Myriad Genetics is trading at $5.30 per share, or 41.5x forward P/E. Read our free research report to see why you should think twice about including MYGN in your portfolio, it’s free.

Evolent Health (EVH)

Share Price: $8.11

Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.