Low-priced stocks are an active playground for speculators, but it can also be fertile ground for investors. There are plenty of stocks trading in the single digits that have strong prospects or encouraging catalysts for a turnaround.

Stocks in the single digits are risky, and there's no sugarcoating that reality. However, the upside is undeniable when investors tap the right ones. Let's look at Vipshop Holdings (NYSE:VIPS)Crocs (NASDAQ:CROX), and Fitbit (NYSE:FIT), three names that could be among the top stocks trading under $10 a share.

Someone wearing a Fitbit tracker holding a door open.

Image source: Fitbit.

Vipshop Holdings

China's fashion-savvy shoppers love a good bargain, and Vipshop is there providing flash sales on brand-name apparel and accessories at deep discounts. The stock fell into the single digits this summer after the company posted disappointing quarterly results. Revenue rose at a modest 30% clip, but margins got snipped in this cutthroat climate to the point where adjusted earnings climbed just 8% higher.

Vipshop may not be a household name for stateside investors, but it expects to top $10 billion in sales in China this year. Growth is slowing, but the stock is cheap at 13 times this year's profit target and 11 times next year's bottom-line forecast.

KeyBanc analyst Hans Chung tagged the stock as an attractive acquisition target late last month. He argues that Vipshop would be a good fit for some of China's leading online retailers, and it wouldn't be a surprise if some offline retailers stepped up with the stock's valuation this compelling.

Crocs

We're years removed from when Crocs' resin footwear was cool, but the company's still out there putting out comfortable shoes that may or may not meet your expectations when it comes to aesthetics. Crocs is working on its third straight year of declining revenue, it's closing namesake stores, and it recently fell short in defending patents protecting the design of its signature clogs. 

There are still some reasons to be hopeful, though. Crocs has blasted through Wall Street's profit estimates in back-to-back quarters, and every major analyst following the company sees a return to profitability next year. Its latest quarter found it landing at the high end of its top-line guidance with improving gross margin and cost controls. 

The product lines have evolved at Crocs, and we've seen footwear trends sway back to being former darlings before. Crocs has issues, but they're not fatal.

Fitbit

Consumers aren't letting tech companies take them by the wrist anymore, and that's been bad news for Fitbit. The maker of fitness-tracking bracelets has seen its sales plummet, tumbling 40% in its latest quarter. Its recently reduced guidance is targeting a 22% to 29% plunge for all of 2017.

Nevertheless, Fitbit still makes the cut. It's still relevant. It shipped 3.4 million devices in the second quarter, and its long overdue smartwatch hits retailers next month. It's true that Fitbit Ionic will have an uphill battle, as only one company has succeeded in the smartwatch game. However, Fitbit's entry will work with non-iOS devices, pack a much longer battery life, and is slightly cheaper than the top dog. 

Even if Fitbit's Ionic falls short, it still has its fitness trackers that continue to gain ground in corporate wellness programs despite their recent retail shortcomings. Fitbit's also striking deals for medical-related devices that could open new doors for the company. Investors are starting to buy into the potential turnaround story. Shares of Fitbit are moving higher for the second consecutive month with the stock up 27% since bottoming out in June.  

Rick Munarriz owns shares of Fitbit. The Motley Fool owns shares of and recommends Fitbit. The Motley Fool recommends Crocs. The Motley Fool has a disclosure policy.