10 Stocks Under $5 With High Potential

Published on December 15, 2022 at 8:22 am by Usman Kabir in Hedge Funds, News

In this article, we discuss the 10 stocks under $5 with high potential. If you want to read about some more high potential stocks, go directly to 5 Stocks Under $5 With High Potential.

The US stock market is the biggest equity trading market in the world. The biggest and most valuable companies trade on exchanges in the US. However, given the bias towards growth in the past few years, the stocks of these big firms, like NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Freeport-McMoRan Inc. (NYSE:FCX), have become out of reach for the common investors. For those not willing to break the bank for investments in stocks, there are many cheaper options available that offer high potential.

Smart traders know that there are deals to be had when markets swoon and stock prices drop across the board. But picking the right stock to buy is tough because of multiple reasons. Buying the dip is not as simple a trading strategy as it might seem and should be cautiously approached. Some of the potential indicators to look for when investing in small firms are growth in revenues and earnings per share, as well as projected figures for these across the next five years. In addition, the price-to-earnings ratios should also be monitored.

Stocks that are trading at a discount to all-time highs generally offer room for growth. In addition, as the markets recover from the macro slowdown, analysts are expecting average annual EPS growth of more than 20% over the next five years, a clear indicator that it might be a very good time to invest in the stock market, especially in cheaper firms that offer explosive growth potential. There is reason for investors to be cautious when trading in cheap stocks too, as recent research suggests that these trades are loaded with risk.

Generally, stocks priced under $5 per share are known as penny stocks. Trades in penny stocks have increased as more retail investors enter the market. This increase is surprising since historical data shows that these trades rarely make money. Calculations by Sihan Zhang, a doctoral student at the University of Alberta, reveal that between July 2011 and October 2020, the average annualized return of Over the Counter (OTC) shares in the US, mostly penny firms, was 44% in the red.

Another important factor to consider when trading in penny stocks is that many of them lie outside the US. Of the 11,500 firms listed on the OTC, nearly three quarters are based outside the US. The influence of retail investors in penny trades can also be understood when viewed in context of a Morgan Stanley report from last June that outlined that these traders accounted for nearly 10% of the daily trading volume on the Russell 3000, the broadest stock index in the US. This number has gone up since last year.

However, there are also many positives to consider when trading in penny stocks. Nikolaos Panigirtzoglou, a global markets strategist at JPMorgan, has highlighted how a list of stocks popular with retail traders in the US outperformed the benchmark S&P 500 this year. The analysis highlights a market shift towards growth companies that trade on the cheap. As the market recovers from a slow year, the volume of penny stock trades has started picking up as well.

Our Methodology

The companies that have upcoming growth catalysts and were priced under $5 per share, as of December 14, were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Photo by Kaleidico on Unsplash

Stocks Under $5 With High Potential

10. Tempo Automation Holdings, Inc. (NASDAQ:TMPO)

Number of Hedge Fund Holders: N/A

Share Price as of December 14: $2.01

Tempo Automation Holdings, Inc. (NASDAQ:TMPO) manufactures electronic products. The shares of the firm have invited a lot of investor interest since debuting on the market last year. In late December, the company entered into an agreement with White Lion Capital. Under the deal, the latter committed to purchase up to an aggregate of $100 million in the post-closing combined company’s common shares from time to time.

Among the hedge funds being tracked by Insider Monkey, London-based firm LMR Partners is a leading shareholder in Tempo Automation Holdings, Inc. (NASDAQ:TMPO) with 250,000 shares worth more than $2.6 million.

Unlike NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Freeport-McMoRan Inc. (NYSE:FCX), Tempo Automation Holdings, Inc. (NASDAQ:TMPO) is one of the more affordable stocks with high potential.

9. Mesoblast Limited (NASDAQ:MESO)

Number of Hedge Fund Holders: 2

Share Price as of December 14: $3.33

Mesoblast Limited (NASDAQ:MESO) engages in the development of regenerative medicine products in Australia, the United States, Singapore, the United Kingdom, and Switzerland. On November 23, the firm posted earnings for the first fiscal quarter, reporting losses per share of $0.0243, beating analyst estimates by $0.14. The revenue over the period was $1.5 million, down 58.3% compared to the revenue over the same period last year and missing market estimates by $1.82 million. The firm has several promising drug pipelines in fields such as cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases.

At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $534,000 in Mesoblast Limited (NASDAQ:MESO), compared to 1 in the preceding quarter worth $95,000.

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Mesoblast Limited (NASDAQ:MESO) with 401,500 shares worth more than $1 million.

8. Vasta Platform Limited (NASDAQ:VSTA)

Number of Hedge Fund Holders: 2

Share Price as of December 14: $3.93

Vasta Platform Limited (NASDAQ:VSTA) is an education company that provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. On June 3, Vasta Platform Limited revealed that it is executing a minority investment agreement by its wholly-owned subsidiary, Somos Sistemas de Ensino S.A, which establishes the terms and conditions for the issuance and the payment of new shares on Educ Bank Gestão de Pagamentos Educacionais S.A. In earnings for the third quarter of 2022, the firm posted a 48% year-on-year increase in revenue.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Ronit Capital is a leading shareholder in Vasta Platform Limited (NASDAQ:VSTA) with 980,471 shares worth more than $5.2 million.

At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $5.2 million in Vasta Platform Limited (NASDAQ:VSTA), compared to 1 in the preceding quarter worth $103,000.

7. Good Times Restaurants Inc. (NASDAQ:GTIM)

Number of Hedge Fund Holders: 6

Share Price as of December 14: $2.72

Good Times Restaurants Inc. (NASDAQ:GTIM) engages in the restaurant business in the United States. Amid inflation, restaurant stocks have declined, offering investors a good entry-point to own a company that is trading at a very fair value, only 3 times earnings. In earnings for the third quarter of 2022, reported in mid-August, the company posted a revenue of more than $36 million, up over 7% compared to the revenue over the same period last year. The earnings per share were $0.04. The firm has no long-term debt and looks set for healthy growth in the future.

At the end of the third quarter of 2022, 6 hedge funds in the database of Insider Monkey held stakes worth $1.9 million in Good Times Restaurants Inc. (NASDAQ:GTIM), compared to 5 in the preceding quarter worth $2.7 million.

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Good Times Restaurants Inc. (NASDAQ:GTIM) with 31,897 shares worth more than $69,000.

6. Telefónica, S.A. (NYSE:TEF)

Number of Hedge Fund Holders: 7

Share Price as of December 14: $3.44

Telefónica, S.A. (NYSE:TEF) provides telecommunications services in Europe and Latin America. On December 12, Telefonica unveiled that Telefónica Germany and Nokia have aggregated sub-6 GHz spectrum frequencies in an industry-first two-component carrier uplink Carrier Aggregation trial on 5G Standalone. On December 12, the firm declared a semi-annual dividend of $0.1553 per share. It is rare for a stock this cheap to offer dividend payments, making it a top play in the under $5 share market.

On November 17, Credit Suisse analyst Pilar Vico maintained a Neutral rating on Telefónica, S.A. (NYSE:TEF) stock and raised the price target to EUR 4.20 from EUR 4.10.

At the end of the third quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $42.5 million in Telefónica, S.A. (NYSE:TEF), compared to 7 in the previous quarter worth $59.9 million.

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Telefónica, S.A. (NYSE:TEF) with 1 million shares worth more than $3.3 million.

In contrast to NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Freeport-McMoRan Inc. (NYSE:FCX), Telefónica, S.A. (NYSE:TEF) is one of the more affordable stocks with high potential.

Click to continue reading and see 5 Stocks Under $5 With High Potential.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up