In this article, we discuss the 5 stocks under $5 with high potential. If you want to read about some more high potential stocks, go directly to 10 Stocks Under $5 With High Potential.
5. Lloyds Banking Group plc (NYSE:LYG)
Number of Hedge Fund Holders: 8
Share Price as of December 14: $2.29
Lloyds Banking Group plc (NYSE:LYG) provides a range of banking and financial services in the United Kingdom. On December 11, Lloyds Banking Group revealed that its private equity arm, LDC, has made a significant investment in capital markets technology outfit, E-Trading Software. The investment will support E-Trading Software as it looks to grow its range of services and expand its offering internationally.
On October 28, JPMorgan analyst Raul Sinha maintained an Overweight rating on Lloyds Banking Group plc. (NYSE:LYG) stock and raised the price target to 58 GBP from 56 GBP.
At the end of the third quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $57.8 million in Lloyds Banking Group plc (NYSE:LYG), compared to 9 the preceding quarter worth $31.6 million.
In its Q3 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Lloyds Banking Group plc (NYSE:LYG) was one of them. Here is what the fund said:
“Lloyds’ great return is partly the result of its exceptionally low starting price. Nevertheless, company fundamentals have also improved in part because of management’s conservative approach to reserving for loan losses as well as its decision at the beginning of the pandemic to suspend its program of returning excess capital to shareholders—a program it has since reinstated.”
4. Nomura Holdings, Inc. (NYSE:NMR)
Number of Hedge Fund Holders: 8
Share Price as of December 14: $3.64
Nomura Holdings, Inc. (NYSE:NMR) provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. The firm operates a network of 119 branches, engaging in services like the management of funds, investment trusts, and other investment vehicles, as well as the provision of investment advisory, custodial, and administrative services.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Nomura Holdings, Inc. (NYSE:NMR) with 2.9 million shares worth more than $9.6 million.
3. Banco Bradesco S.A. (NYSE:BBD)
Number of Hedge Fund Holders: 15
Share Price as of December 14: $2.55
Banco Bradesco S.A. (NYSE:BBD) provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. On December 1, the company declared a monthly dividend of $0.0032 per share, a decrease of 3% from the previous dividend of $0.0033 per share.
On November 17, JPMorgan analyst Domingos Falavina upgraded Banco Bradesco S.A. (NYSE:BBD) stock to Overweight from Neutral with a price target of R$21, down from R$22, highlighting that shares are now offering a good entry point, specifically for investors willing to endure this cycle.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Banco Bradesco S.A. (NYSE:BBD) with 25 million shares worth more than $92.5 million.
2. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 16
Share Price as of December 14: $3.56
Tilray Brands, Inc. (NASDAQ:TLRY) engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. Cannabis stocks have declined after US legislation that would have allowed American marijuana businesses access to US banks was excluded from a recent defense bill. However, cannabis legislation remains high on the agenda of lawmakers, giving these firms plenty of upside potential.
On November 1, Bernstein analyst Nadine Sarwat initiated coverage of Tilray Brands, Inc. (NASDAQ:TLRY) stock with a Market Perform rating and $3.90 price target, highlighting that the company’s cannabis business has best-in-class gross margins and should be free cash flow positive this fiscal year.
At the end of the third quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $33.4 million in Tilray Brands, Inc. (NASDAQ:TLRY), compared to 14 in the previous quarter worth $12.6 million.
1. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 24
Share Price as of December 14: $4.99
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions worldwide. On December 8, Nokia announced that it had launched the second EUR 300 million phase of the share buyback program that aims to return up to EUR 600 million of cash to its shareholders in tranches over a period of two years.
On November 9, Deutsche Bank analyst Robert Sanders Nokia Oyj maintained a Buy rating on Nokia Oyj (NYSE:NOK) stock and lowered the price target on Nokia to EUR 5.50 from EUR 6.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Berkshire Hathaway Inc. (NYSE: BRK-A) with 20.3 million shares worth more than $86.7 million.
In its Q3 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Nokia Oyj (NYSE:NOK) was one of them. Here is what the fund said:
“Two clear examples of value traps that I remember with particular anger include Nokia (NYSE:NOK). Two companies suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period, players such as Apple and Samsung wiped the Finnish giant off the map.”
You can also take a peek at 11 Undervalued Canadian Stocks To Buy and 10 Best Cannabis Stocks To Buy.
