Please enable JavaScript to view the comments powered by Disqus.
Slide Show

1 of 4

3 Retailer Stocks Under $10 to Avoid: SHLD, SPLS, SVU

iStock

A stock selling below $10 a share can be hard to resist, especially when it's attached to a household name. The low price gives an investor a chance to bet on a well-known company for the cost of a meal at McDonald’s.

But just because a stock looks cheap on its face doesn't mean it's a bargain. Often, a recognizable stock trading in the single digits is doing so because the underlying business is in trouble. Besides, you should use even small sums of cash wisely. A loss is a loss, and that money could’ve been put to more profitable use elsewhere.

We’ve identified three prominent companies whose sub-$10 stocks are best avoided by prudent investors. While the shares might seem like a steal, the businesses’ financial outlooks are poor and the stocks appear to be headed for further declines. Consider yourself warned.

(Prices and other data are as of January 27, 2017. Estimates and other figures are from Zacks Investment Research, unless otherwise noted.)

View as One Page

Check Out

Kiplinger's Latest Online Broker Rankings

Advertisement