In this article, we will take a look at the 10 best tech stocks under $5. You can skip our detailed analysis of the technology sector, and go directly to the 5 Best Tech Stocks Under $5.
Amidst the chaos caused by the Covid-19 pandemic, the technology industry seems to have flourished, with investors and hedge funds alike remaining bullish on technology stocks that adapted to the current economic environment. For the past couple of years, the 6 of the 10 biggest companies in the world based on market capitalization belonged to the technology sector, and accounted for more than 20% of the S&P 500 Index by this year.
With the number of vaccinations rising, people returning to office work and retail stores reopening, corporate spending on the technology sector is rising. Based on findings from the research and advisory firm Forrester, the United States tech market continues to gain a positive outlook, with the market budget projected to increase by 7.4% this year and 6.7% in the next. While computers and communication equipment will certainly be receiving their fair share, the software sector could be one of the biggest winners in the coming years, with budgets accelerating by almost 10% this year, and a little over 11% in 2022.
The dominance of the technology stocks on the stock market is explained by the returns they offer to investors globally. As businesses, educational facilities, and even communication services went solely digital, the tech industry became the driver of the economy. As such, investing in this lucrative market can be a smart decision for those looking to invest in innovative sectors while diversifying their investment portfolios.
Some of the notable stocks investors can buy under $5 include Waitr Holdings, Inc. (NASDAQ:WTRH), Pixelworks, Inc. (NASDAQ:PXLW) and Trivago N.V (NASDAQ:TRVG), among others discussed in detail below.
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Our Methodology
Let us now analyze our list of the 10 best tech stocks under $5. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Tech Stocks Under $5
10. Boxlight Corporation (NASDAQ:BOXL)
Number of Hedge Fund Holders: 4
Stock Price as of October 15: $2.17
Boxlight Corporation (NASDAQ:BOXL) is a leading provider of interactive technology that engages in the provision of education technology and classroom solutions. The company ranks tenth on our list of the 10 best tech stocks under $5.
On August 12, Boxlight Corporation (NASDAQ:BOXL) released its quarterly earnings report for the second quarter of 2021,with reported earnings per share at -$0.04, crossing market estimates by $0.01. The firm also reported revenues at $46.75 million, an increase of 497.29% on a year-over-year basis, surpassing predictions by $6.49 million.
Jim Simons’ Renaissance Technologies is one of the biggest stakeholders of Boxlight Corporation (NASDAQ:BOXL) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 4 hedge funds were bullish on the company by the end of the June quarter, compared to 3 in the previous quarter.
Earlier this July, Alliance Global Partners analyst Brian Kinstlinger raised the price target on Boxlight Corporation (NASDAQ:BOXL) to $6 from $5.50, and kept a Buy rating on the shares of the company.
9. Amplitech Group, Inc. (NASDAQ:AMPG)
Number of Hedge Fund Holders: 5
Stock Price as of October 15: $3.47
Amplitech Group, Inc. (NASDAQ:AMPG) is an engineering services company involved in the design, engineering, and assembly of radio frequency (RF) telecommunication equipment. The company ranks ninth on our list of the 10 best tech stocks under $5.
For the second quarter of 2021, Amplitech Group, Inc. (NASDAQ:AMPG) reported an EPS of -$0.08, beating estimates by $0.02. Additionally, the company’s revenue for the quarter came in at $1.02 million, crossing consensus estimates by $0.22 million.
By the end of the second quarter of 2021, 5 hedge funds out of the 873 tracked by Insider Monkey held stakes in Amplitech Group Inc. (NASDAQ:AMPG) worth roughly $2.65 million, up from 3 hedge funds in the preceding quarter.
On July 28, Maxim analyst Jack Vander Aarde initiated coverage of AmpliTech Group, Inc. (NASDAQ:AMPG) with a Buy rating and $10 price target.
8. eMagin Corporation (NYSE:EMAN)
Number of Hedge Fund Holders: 6
Stock Price as of October 15: $2.21
eMagin Corporation (NYSE:EMAN) is a New York-based electric components manufacturer which specializes in organic light emitting diode displays. It is placed eighth on our list of 10 best tech stocks under $5.
The company beat market expectations on earnings per share in the second quarter by $0.03. The firm has also reported revenues for the quarter amounting to $6.28 million. The firm also reported a $33 million contract with the US Department of Defense for the company’s manufactured microdisplays.
HC Wainwright analyst Kevin Dede is among the analysts that are bullish on the stock.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $4 million in eMagin Corporation (NYSE:EMAN).
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Brevan Howard is a leading shareholder in eMagin Corporation (NYSE:EMAN) with 839,455 shares worth more than $2.9 million.
7. Exela Technologies, Inc. (NASDAQ:XELA)
Number of Hedge Fund Holders: 7
Stock Price as of October 15: $1.72
Exela Technologies, Inc. (NASDAQ:XELA) operates as a global business and work flow automation company that provides transaction processing solutions across the globe. Headquartered in Irving, Texas, the company comes in at eighth on our list of the 10 best tech stocks under $5.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $7.5 million in Exela Technologies, Inc. (NASDAQ:XELA), down from 8 in the previous quarter worth $10 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Luminus Management is a leading shareholder in Exela Technologies, Inc. (NASDAQ:XELA) with 1.3 million shares worth more than $3 million.
On August 31, B. Riley analyst Zach Cummins initiated coverage of Exela Technologies, Inc. (NASDAQ:XELA) with a Buy rating and $4 price target on its shares.
In the second quarter of 2021, the firm reported an EPS of -$0.33, beating the consensus estimates by $0.12. The company also reported revenues amounting to $293.01 million for the quarter.
6. Ceragon Networks Ltd. (NASDAQ:CRNT)
Number of Hedge Fund Holders: 9
Stock Price as of October 15: $3.44
Based in Tel-Aviv, Israel, Ceragon Networks Ltd. (NASDAQ:CRNT) is a developer, manufacturer and vendor of networking equipment and solutions, with a primary focus on wireless point-to-point connectivity. The company ranks seventh on our list of the 10 best tech stocks under $5.
Earlier this September, Aegis analyst Rommel Dionisio began coverage of Ceragon Networks Ltd. (NASDAQ:CRNT) with a Buy rating and $6 price target on the company’s shares.
As of the end of the second quarter, 9 hedge funds tracked by Insider Monkey reported owning stakes in Ceragon Networks Ltd. (NASDAQ:CRNT). The total worth of these stakes is $18.7 million. This is compared to 8 hedge funds that had stakes in the company in the previous quarter, with a total worth of $25.4 million.
Out of the hedge funds being tracked by Insider Monkey, Catherine Wood’s Ark Investment Management is a leading shareholder in Ceragon Networks Ltd. (NASDAQ:CRNT) with over 1.5 million shares worth more than $5.75 million.
Besides Waitr Holdings, Inc. (NASDAQ:WTRH), Pixelworks, Inc. (NASDAQ:PXLW) and Trivago N.V (NASDAQ:TRVG), Ceragon Networks Ltd. (NASDAQ:CRNT) is a notable stock to buy.
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Disclosure. None. 10 Best Tech Stocks Under $5 is originally published on Insider Monkey.
