10 Best US Stocks to Buy Under $5

6. Ardagh Metal Packaging SA (NYSE:AMBP)

Number of Hedge Fund Holders: 29

Current Share Price: $3.57

Ardagh Metal Packaging SA (NYSE:AMBP) is a consumer cyclical company that supplies consumer metal beverage cans. Its products are used in various end-use categories, including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, and pre-mixed cocktails.

It stands out as one of the best U.S. stocks to buy under $5 owing to its ability to drive value through organic and inorganic growth. The company delivered solid second-quarter results, marking another consecutive quarter of outperformance.

Adjusted earnings were up 18% to $178 million, exceeding guidance. Global beverage can shipments grew by 3%, driven by 5% growth in Europe. Revenue remained stable at $1.25 billion. From a business perspective, Ardagh Metal Packaging SA (NYSE:AMBP)’s revenue for the last 12 months ending Q2 2024 amounts to $4.826 billion, showing a slight increase of 4.12%, indicating a consistent performance in its industry sector.

It is hopeful about the rise in profits for 2025 and 2026, mainly due to an increase in sales volume. Even though there are some difficulties in certain markets, like a brief downturn in the energy drink segment, Ardagh Metal Packaging SA (NYSE:AMBP) continues to have a strong financial perspective and is in a strong position for further expansion.

The company improved its 2024 outlook, projecting shipments growth approaching mid-single digit percentage and full-year Adjusted EBITDA of $640-660 million. Even though there’s been a 7% drop in beverage can deliveries in Brazil, the area is expected to see double-digit expansion.

Ardagh Metal Packaging SA (NYSE:AMBP) also achieved notable progress in sustainability on securing a $300 million loan agreement. It has declared a quarterly dividend of $0.10 per share. While trading at a price-to-earnings multiple of 15, the company boasts a solid 11.275 dividend yield, affirming its status as one of the best U.S. stocks to buy under $5 for passive income.

A total of 29 hedge funds tracked by Insider Monkey had stakes in Ardagh Metal Packaging SA (NYSE:AMBP) as of the end of the second quarter of 2024. Of those, Canyon Capital Advisors was the top stockholder in the company and held a position worth $34.53 million.