Investing in stocks under $5 can be an enticing prospect for both seasoned investors looking for potential growth opportunities and newcomers seeking to enter the market without a significant initial investment. These stocks, often referred to as penny stocks, can present lucrative opportunities if chosen wisely.
In this article, we'll explore the top stocks under $5 to consider for investment in 2023. The stocks we’ve picked all faced significant market pressure in the past year but show significant promise for growth going forward.
The best stocks to buy under $5 in 2023:
- Lucid Group – A leading EV car manufacturer
- Sirius XM – One of the largest satellite radio services
- Hecla Mining Company – The second-largest producer of silver
- Ginkgo Bioworks – Biotech company focused on gene editing hardware
- Dish Network – The largest satellite TV provider in the US
- ImmunityBio – A cancer-preventing research company
- Community Health Systems – A leading healthcare services provider
- United Maritime Corp – A global shipping company
The 8 best stocks to buy under $5: Examining the top investment opportunities
In the sections below, we are going to examine the best investment opportunities under $5 currently available in the stock market. Please keep in mind that the following selection is the representation of this author's opinion and should not be treated as investment advice.
1. Lucid Group – A leading EV car manufacturer
Lucid (LCID), a prominent player in the electric vehicle (EV) industry, has been gaining attention due to its innovative technology and promising growth prospects. Despite fluctuations, Lucid's stock under $5 presents a potential opportunity for investors interested in the EV market.
The company's Lucid Air sedan is considered to be one of the most luxurious and technologically advanced EVs on the market, challenging Tesla’s Model S. According to Wall Street analysts, Lucid stock price could appreciate by roughly +40% by November 2023.
| Stock Price (YoY Change) | $4.20 (-50.9%) |
|---|---|
| Market Cap | $9.61 billion |
| EPS (YoY Change) | -$0.28 (+10.45%) |
| EPS Report Date | November 7, 2023 |
| LCID Price Prediction (1-year) | $?12.85 (+178.8%) |
2. Sirius XM – One of the largest satellite radio services
Sirius XM (SIRI), a leader in satellite radio services, continues to demonstrate resilience in the market. With its stock trading under $5, it offers an accessible entry point for investors eyeing the media and entertainment sector.
The company is investing heavily in new technologies, such as its SiriusXM Streaming service, which allows it to compete with newer companies in the broadcasting space. The SIRI stock was trading as high as $8 as recently as 2021, showcasing its potential for trading higher.
| Stock Price (YoY Change) | $4.72 (-15.8%) |
|---|---|
| Market Cap | $19.23 billion |
| EPS (YoY Change) | $0.09 (+2.22%) |
| EPS Report Date | October 31, 2023 |
| SIRI Price Prediction (1-year) | $4.94 (+4.7%) |
3. Hecla Mining Company – The second-largest producer of silver
Hecla Mining (HL) is a silver and gold mining company that has a strong presence in the United States. The company is also expanding its operations into Mexico and Canada. During the COVID-19 pandemic, the production rate of gold and silver dropped but has picked up since the lockdowns were lifted.
With both the price of a gold bar and silver bar increasing, investing in a precious metals mining company such as Hecla could be a good choice to get exposure to the trend without buying the physical metals directly.
| Stock Price (YoY Change) | $4.63 (-16.7%) |
|---|---|
| Market Cap | $2.86 billion |
| EPS (YoY Change) | -$0.01 (-20%) |
| EPS Report Date | November 6, 2023 |
| HL Price Prediction (1-year) | $7.46 (+58.3%) |
4. Ginkgo Bioworks – Biotech company focused on gene editing hardware
Ginkgo Bioworks (DNA), a biotech company, is making strides in the field of synthetic biology. Its stock under $5 can be an intriguing choice for investors interested in the biotech sector's potential growth. The company is focused on using biotechnology to manufacture everything from food to materials to therapeutics.
It is worth noting that the DNA stock traded as high as $16 in 2021 shortly after entering the market, but has since slipped to roughly $1. If Ginkgo succeeds in developing precise gene editors – which they are currently developing with another biotech company, Arbor – we could easily see DNA reach its previous highs.
| Stock Price (YoY Change) | $1.32 (-27.2%) |
|---|---|
| Market Cap | $2.81 billion |
| EPS (YoY Change) | -$0.09 (-70.62%) |
| EPS Report Date | November 8, 2023 |
| DNA Price Prediction (1-year) | $4.52 (+232%) |
5. Dish Network – The largest satellite TV provider in the US
Dish Network (DISH) is a satellite television provider that is also investing in new technologies, such as 5G wireless and over-the-top (OTT) streaming services. DISH is the largest satellite television provider in the United States. This gives the company a strong market position and a loyal customer base.
DISH stock is currently undervalued, according to some analysts. This means that the company's stock price is below its intrinsic value, making it a potentially attractive investment. Our stock forecast algorithm agrees, pinning DISH’s expected value at $27.65 a year from now, which would be more than a +500% increase compared to current market rates.
| Stock Price (YoY Change) | $4.31 (-70.1%) |
|---|---|
| Market Cap | $2.3 billion |
| EPS (YoY Change) | -$0.26 (-85.3%) |
| EPS Report Date | November 6, 2023 |
| DISH Price Prediction (1-year) | $27.65 (+520%) |
6. ImmunityBio – A cancer-preventing research company
ImmunityBio (IBRX) is a clinical-stage biotechnology company that is developing immunotherapies for cancer. The company's lead product candidate, IMM-425, is currently in clinical trials for the treatment of acute myeloid leukemia (AML).
There are numerous companies developing treatments for cancer, so it might be a long shot for a relatively small pharmaceutical company to beat giants like Pfizer and Novartis to the punch. However, there’s a huge potential upside for early investors if ImmunityBio succeeds in its efforts.
| Stock Price (YoY Change) | $3.28 (-46.8%) |
|---|---|
| Market Cap | $2.2 billion |
| EPS (YoY Change) | -$0.19 (+93.5%) |
| EPS Report Date | November 8, 2023 |
| IBRX Price Prediction (1-year) | $10.78 (+239%) |
7. Community Health Systems – A leading healthcare services provider
Community Health Systems (CYH) is a leading provider of healthcare services in rural and underserved areas. The company has a strong track record of profitability and is well-positioned to benefit from the aging population and the increasing demand for healthcare services.
The healthcare sector saw immense growth in recent years, with the S&P 500 Health Care Sector Index growing from 1,020 to 1,546 points between early 2020 and 2023. This trend will likely continue and Community Health Systems could very well benefit from it.
| Stock Price (YoY Change) | $2.39 (-30.5%) |
|---|---|
| Market Cap | $326 million |
| EPS (YoY Change) | -$0.33 (-6.67%) |
| EPS Report Date | October 25, 2023 |
| CYH Price Prediction (1-year) | $12.96 (+412%) |
8. United Maritime Corp – A global shipping company
United Maritime Corporation (USEA) is a shipping company that specializes in the transportation of crude oil and petroleum products. The company is positioned well to benefit from the recovering global economy, especially considering that logistics hubs around the world continue to display increased activity.
It is worth noting that the company has a relatively small market cap and a small fleet of vessels. However, the company’s Chairman and CEO, Stamatis Tsantanis, recently rang the Opening Bell at the Nasdaq MarketSite in Times Square, saying that the company is aiming for “high shareholder returns through strategic investments.”
| Stock Price (YoY Change) | $2.43 (-38.1%) |
|---|---|
| Market Cap | $22 million |
| EPS (YoY Change) | $0.95 (-98%) |
| EPS Report Date | November 15, 2023 |
| USEA Price Prediction (1-year) | $2.49 (+2.5%) |
The bottom line
Investing in stocks under $5 can enable investors to seek high returns, as most companies with stocks trading that low have a relatively low market capitalization. It is worth noting, however, that such companies are often more likely to fail than the more established and bigger companies, which means there’s more risk associated with investing in sub-$5 stocks.
If you want a more traditional examination of the best stock-buying opportunities, check our list of the best stocks to invest in right now. If you want a list that’s geared toward artificial intelligence companies, check out our selection of the best AI stocks. Finally, if you want to explore a similarly-themed investment analysis for slightly cheaper stocks, check the article about the best AI penny stocks.
