10 Best Nasdaq Stocks Under $5 to Buy

2. Diversified Healthcare Trust (NASDAQ:DHC)

Current Market Price: $2.64

Number of hedge funds: 23

Diversified Healthcare Trust (NASDAQ:DHC) is a real estate investment trust (REIT) that specializes in owning and managing a diversified portfolio of healthcare-related properties across the U.S., including senior living communities, medical office buildings, and life science facilities. The company’s primary strategy is to generate steady income through long-term leases with healthcare operators and tenants, leveraging the increasing demand for healthcare services and facilities.

On February 2, 2025, Diversified Healthcare Trust (NASDAQ:DHC) reported the completion of the sale of MUSE, a 186,000 square foot, three-building life science property in Torrey Pines, San Diego, for $159.0 million. At the time of sale, the property was 49% leased, with an average lease term exceeding eight years. The company intends to use the sale proceeds to pay down its senior secured notes due in January 2026. As per the company’s business strategy, they occasionally sell properties if keeping them or the required expenses won’t provide the desired returns, if they’ve already maximized returns, or if better opportunities arise. In the long-term, Diversified Healthcare Trust (NASDAQ:DHC) is well-positioned to benefit from the aging population and increasing healthcare needs, which drive demand for senior living and medical office spaces.