3 Stocks Under $10 We Think Twice About: SSP, HTZ, and EVGO

Cheap share prices can still hide expensive risk

A low share price is not the same as a low-risk investment. When I look at stocks under $10, I ask a simple question: can this business keep making money without leaning on fresh capital, softer lenders, or a hopeful story? If the model still does not hold up, the low price is usually a warning, not a bargain.

That is why SSP reports after the close on August 6 and Hertz reports on August 6 as well. The catalyst is calendar-driven, not reassuring. An earnings date does not lower the risk; it just sets a date for the smell test.

Before buying because a share price looks like pocket change, I look for a few basic signs of durability:

• Repeat demand: Are customers coming back, or is management mainly selling a future story?
• Profit durability: Does the model generate cash repeatedly, or does it keep needing help?
• Consistency: Are results getting sturdier quarter to quarter, or still bouncing around?
• Simplicity: Is the product or service easy to understand, with clear utility and brand loyalty?

If those answers are muddy, the stock may look cheap, but the risk probably is not.

SSP: Sports-driven ad demand helps, but profits still lag

SSP is the kind of story that looks plausible until you check the bottom line.

Sports help top-line demand, but the earnings engine is still unclear

There is real demand in the business. Scripps reported Local Media ad revenue increased 7%, and management said that increase was largely driven by revenue from agreements with four National Hockey League teams, with additional help from the Winter Olympics and the Super Bowl. That is an easy demand story to understand: sports bring viewers in, and viewers can translate into ad dollars.

But the profit test still misses. Scripps posted loss attributable to the shareholders of Scripps was $18 million or 20 cents per share, while net leverage at the end of the first quarter was 3.9x. You can like the audience hook and still respect that gap. A busy sports schedule is not the same thing as a durable earnings engine.

August 6 earnings will test whether the demand story is repeatable

That is why next week matters. Analysts are looking for roughly $513.1 million of Q2 revenue and ($0.43) per share when SSP reports. The setup is not straightforward. The NHL regular season ended in mid-April, so the sports-related ad boost may be less supportive in the quarter ahead.

I will keep the company's 2028 EBITDA plan in the back pocket, but investors do not need that distant target to judge the stock right now. The more immediate question is whether demand remains firm once the sports tailwind fades.

• Positive sign: Management can show ad demand is still firm after the NHL season ended, with no clear breakdown in local media demand.
• Holding condition: Revenue lands near expectations, leverage does not worsen materially, and the outlook sounds sustainable rather than dependent on one-off spikes.
• Negative sign: Another loss comes with softer Q2 revenue or guidance that implies the sports boost was the main demand driver.

Until that report lands, SSP remains a business with a believable audience story but still no clean proof of durable profitability.

HTZ and EVGO: More narrative than proof

The same skepticism applies to the other names on this watchlist. For HTZ, the Aug. 6 report matters because the business still needs to show that recent improvements are durable rather than just a short-lived rebound. For EVGO, the issue is even more basic: the company still has record first-quarter revenue of $110 million, up 45% year over year, but the scale, economics, and path to sustainable profitability still look early.

In both cases, the low share price does not do enough work. If the businesses cannot show repeatable demand and a self-supporting model, the stocks remain the kind of low-priced names investors should think twice about.

What to watch before these names look investable

The near-term test is straightforward. For SSP and HTZ, the Aug. 6 reports should clarify whether recent demand and operational trends are holding up. For EVGO, the more important question is whether growth is starting to translate into something more durable than headline momentum.

If those reports and updates show sturdier economics, lower capital dependence, and clearer paths to profitability, the risk case weakens. If not, the sub-$10 price tag is still more warning sign than opportunity.