10 Best Nasdaq Stocks Under $5 to Buy

7. Talkspace Inc. (NASDAQ:TALK)

Current Market Price: $4.10

Number of hedge funds: 20

Talkspace Inc. (NASDAQ:TALK) is a behavioral telehealth company that provides online therapy and mental health services through its digital platform. The company connects users with a fully-credentialed network of licensed therapists, psychologists, and psychiatrists via text, audio, and video messaging, making mental health care more accessible and convenient. Talkspace aims to reduce the stigma associated with seeking mental health support and improve overall mental wellness.

At the JP Morgan Healthcare Conference held in January 2025, the company stated that the behavioral health market is massive and severely underserved, with an estimated addressable market of around $66 billion across various customer segments. In early December 2024, Mizuho and KeyBanc initiated coverage on Talkspace Inc. (NASDAQ:TALK) with an Outperform and Overweight rating and price targets of $5 and $4.5, respectively. According to the KeyBanc analyst, sales growth of 20%-25% is anticipated, primarily driven by further expansion into payor networks and continued margin expansion from scale and operating leverage. The analyst highlights that the company’s transition from consumer cash pay to a business-to-business model is a crucial element of its strategy. The company’s acceptance of insurance not only enhances patient retention but also reduces customer acquisition costs, leading to decreased volatility and expanding margins.