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Best Stocks Under $5

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Aphria (NASDAQ: APHA)

Aphria is a pharmaceutical company based in Leamington, Canada, that researches, produces and distributes marijuana. It is 1 of the largest marijuana companies in the Canadian market, which recently legalized recreational marijuana use. The company targets both the medical and recreational marijuana market segments.

Aphria remains committed to capitalizing on the emerging Canadian and global marijuana market. The company has invested heavily in product innovation and expanding operations worldwide. Acquisitions of LATAM holdings and CC Pharma have allowed it to enter Latin American and German markets.

4.68 0 (0%)
Volume 4.41M Market Cap 1.25B
4.59 - 4.75
1.95 - 6.44
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Catalyst Pharmaceuticals (NASDAQ: CPRX)

Catalyst Pharmaceuticals is a biopharmaceutical that researches, develops and commercializes FDA-approved treatments for patients with rare neuromuscular and neurological diseases.

Located in Coral Gables, Florida, the company’s latest FDA-approved drug, Firdapse, treats adults with LEMS. LEMS is an autoimmune disorder in which the body’s immune system attacks the body’s own tissue. The drug is currently in clinical trials for the treatment of other diseases like myasthenia gravis and spinal muscular atrophy.

Catalyst Pharmaceuticals reported its 1st positive annual EPS in 2019. Its most recent EPS came in at $0.30. The company boasts a robust balance sheet with over $101 million in cash and investments with no funded debt.

3.18 0.08 (2.58%)
Volume 1.05M Market Cap 328.86M
3.1 - 3.215
2.55 - 5.83
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OrganiGram Holdings (NASDAQ: OGI)

OrganiGram is a Candian company that produces and sells legal medical marijuana. The company generated $60.9 million in revenue in 2019.

OrganiGram and other cannabis stocks have really struggled as Canandian demand growth has consistently fallen short of expectations. In the third quarter, OrganiGram’s revenue was down 27% from a year ago, and the company cut 45% of its workforce this year due to the pandemic.

OrganiGram has also delayed the launch of its new “cannabis 2.0” derivative products while it navigates the difficult environment. Given Organigram’s struggles, the stock is a high-risk speculative investment. But Cantor Fitzgerald is projecting 31.3% revenue growth and a more than 80% drop in earnings per share losses in 2021.

1.25 0.01 (0.81%)
Volume 3.37M Market Cap 216.35M
1.22 - 1.3
1.01 - 4.01
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Nokia (NYSE: NOK)

Nokia is a multinational telecommunications, information technology and consumer electronics company based in Espoo, Finland. Nokia engages with service providers, industry, public sector and consumers worldwide. It remains committed to innovation and next generation technology with a focus on developing and deploying 5G networks.

The company has undertaken many acquisitions to cement its position as a global leader in next-generation technology innovation. These include award-winning Bell Labs, SpaceTime Insight and Elenion. The company has recently reported an EPS of $-0.19.

4.27 -0.0151 (-0.35%)
Volume 33.77M Market Cap 23.99B
4.19 - 4.3
2.34 - 5.24
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Marathon Oil (NYSE: MRO)

Marathon Oil is an international oil and gas exploration and production company. The company has 2.1 billion barrels of oil equivalent in proved reserves in the US, Libya, Equatorial Guinea and other locations.

A sharp drop in travel demand sent oil prices and oil stocks tumbling once again in 2020, and Marathon Oil shares were no exception. Investors are right to be skeptical of oil and gas stocks given their disappointing performance over the past decade and their potential secular headwinds in the long-term.

However, Marathon’s properties in the Bakken and Eagle Ford shales are within the most productive regions, and the stock trades at just 7.3 times normalized 2019 earnings. Margins will likely continue to improve as completed well costs fall and Marathon shuts down its worst-performing wells.

4.38 0.28 (6.83%)
Volume 29.83M Market Cap 3.46B
4.09 - 4.4
3.02 - 14.07
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Stocks Under $5 Movers of the Day

Make sure to periodically check premarket movers of the day to identify stocks that are outperforming others.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Stocks Under $5
Symbol Last Price Change % Change Trade
TC 6 5.24 689.47% Trade
OEG 0.9491 0.23 31.91% Trade
HPR 0.1582 0.028 21.22% Trade
BGI 1.06 0.18 20.45% Trade
YTRA 1.05 0.173 19.72% Trade
GLBS 8.95 1.39 18.38% Trade
PSHG 0.5875 0.078 15.19% Trade
IMAC 0.915 0.115 14.37% Trade
DXLG 0.29 0.035 13.72% Trade
IDEX 0.96 0.109 12.86% Trade
Symbol Last Price Change % Change Trade
ISIG 0.9095 -0.84 -48.03% Trade
TLGT 0.7031 -0.342 -32.72% Trade
JT 0.639 -0.241 -27.39% Trade
TGC 1.1601 -0.33 -22.15% Trade
ITP 0.56 -0.101 -15.34% Trade
BBI 0.7201 -0.109 -13.19% Trade
LLIT 0.4627 -0.057 -11.02% Trade
RIVr 0.0081 -0.001 -8.99% Trade
LKCO 0.581 -0.056 -8.77% Trade
AUMN 0.4444 -0.036 -7.46% Trade
Market Stocks Under $5
Symbol Last Price Change % Change Trade
TC 3.18 2.42 318.42% Trade
BGI 1.2 0.32 36.36% Trade
ICON 0.8245 0.13 18.65% Trade
DXLG 0.28 0.025 9.8% Trade
IDEX 0.9195 0.069 8.1% Trade
REI 0.77 0.047 6.51% Trade
HPR 0.1375 0.007 5.36% Trade
MSN 1.01 0.049 5.14% Trade
RETO 0.8165 0.036 4.67% Trade
ALJJ 1.03 0.045 4.56% Trade
Symbol Last Price Change % Change Trade
ISIG 1.28 -0.47 -26.86% Trade
PLIN 0.95 -0.21 -18.11% Trade
TGC 1.24 -0.25 -16.78% Trade
JT 0.75 -0.13 -14.78% Trade
NEOS 0.76 -0.103 -11.92% Trade
ITP 0.59 -0.071 -10.8% Trade
TLGT 0.9372 -0.108 -10.32% Trade
LLIT 0.4712 -0.049 -9.39% Trade
CHEK 0.312 -0.03 -8.8% Trade
SB 0.95 -0.075 -7.32% Trade
After Hours Stocks Under $5
Symbol Last Price Change % Change Trade
JT 0.73 0.098 15.48% Trade
XELB 1.2 0.1 9.09% Trade
BTE 0.39 0.028 7.85% Trade
HNRG 0.8592 0.058 7.25% Trade
DFFN 0.9 0.051 5.98% Trade
DXLG 0.31 0.016 5.44% Trade
SXTC 0.32 0.014 4.57% Trade
KIQ 0.6059 0.025 4.28% Trade
CLSN 0.599 0.024 4.17% Trade
GPOR 0.2925 0.011 4.05% Trade
Symbol Last Price Change % Change Trade
MDLY 0.65 -0.17 -20.77% Trade
TC 5.02 -1.01 -16.75% Trade
BGI 0.9301 -0.12 -11.42% Trade
OEG 0.905 -0.062 -6.46% Trade
IZEA 0.7699 -0.05 -6.13% Trade
JILL 0.8124 -0.038 -4.43% Trade
TGC 1.12 -0.05 -4.28% Trade
ENG 0.883 -0.037 -4.03% Trade
PLIN 1.06 -0.04 -3.64% Trade
GPL 0.84 -0.03 -3.45% Trade

Searching for quality stocks under $5 is a lot like bargain hunting. Low prices allow you to buy these stocks in large quantities without stretching your wallet. The payoffs can be huge, but so can the volatility. 

We’ve put together everything you need to know about stocks under $5. Take a look at our top picks for bargain stocks that show the most potential. 

Overview: Stocks Under $5

Stocks that trade under $5 are considered cheap stocks. But unlike stocks under $10 or stocks under $20, stocks under $5 are in a separate category. The Securities and Exchange Commission (SEC) considers stocks that trade under $5 to be penny stocks. 

Let’s say you invest $300 for 100 shares of a stock trading at $3. If that stock price goes up by only $3, you will have made 100% in profit, or $300. Huge payoffs for little upfront capital is what makes cheap stocks an attractive investment. 

A strategy for spotting potential in stocks under $5 is to look out for undervalued companies. Companies that have suffered a crisis might see stock prices dip into the low single digits. Executive mismanagement, high debt, pricing pressures and increased competition are some of the factors that spook investors and send a company’s stock sinking. 

But the company might be able to turn things around. Management can change, debt can be restructured or the market could shift in the company’s favor. Everyone loves a comeback — especially if you’ve scooped up that stock for a bargain.

Another way to spot a potential winner is by looking at companies that have major growth potential. A stock could trade under $5 because the company is small. But that small company could also be rapidly growing.

Take a look at how the market is performing. These strategies are just the beginning. Always do your due diligence when investing in stocks under $5. 

Best Online Brokers for Stocks Under $5

The right online broker can help you execute your investment strategy and make trading cheap stocks seamless. Take a look at some of Benzinga’s favorites. 

Commissions
$0
Account Minimum
$0
Get started securely through Webull’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in options, mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
Get started securely through TD Ameritrade’s website
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates

Features to Look for in Stocks Under $5 

Here are some things you may want to consider as you gather stocks under $5 into your basket:

  • Earnings per share: A great way to get a sense of a company’s profitability is by looking at its earnings per share (EPS). You can find a company’s EPS by subtracting the preferred dividends from net income and then dividing the difference by outstanding stockholder shares. If you spot a stock with EPS that has been growing, it can signal growth potential. 
  • Trading volume: A stock’s trading volume will tell you how many shares are traded during the day. If the trading volume isn’t high enough, you may not be able to sell your position. Stocks that have a trading volume of at least 1 million tend to be safer. Keeping an eye on the trading volume will also help you spot stocks that may be on the uptick. 
  • Management: A management team that is set on turning the company around can be the reason a stock under $5 enjoys a boost. A company’s focus on capitalizing on a growing market is another sign of potential. Look into the company’s strategic business plan to understand the mindset of management.

Weigh Risk for Stocks Under $5

Cheap stocks have potential growth and a fair share of risks. Stocks under $5 are notorious for major upswings and downfalls. Your risk for loss is also higher if the company hits a difficult roadblock. It’s not unheard of for companies with shares trading under $5 to go under and leave investors with nothing. 

Avoid putting all your money into these stocks and diversify with safer assets like blue-chip stocks or bonds. Stocks under $5 can be a valuable addition to your investment portfolio with your due diligence and diversification.

Hire a Pro: Compare Financial Advisors In Your Area