10 Best Stocks Under 5 Dollars to Buy Right Now
Some of the greatest opportunities can be found in beaten down, ignored stocks under $5.
Especially those with solid long-term growth and strong fundamentals.
- Digital Turbine (APPS) ran from about $1.20 to a high of $102.56 for 8,447%.
- Harmonic (HLIT) ran from $4.30 to a high of $12.22
- Marathon Oil (MRO) ran from a low of $3.64 to $25.58
While we often hear that sub-$5 stocks are “there for a reason” and “should be avoided at all costs,” that’s bad advice. Instead, with a little digging, you may just uncover the Digital Turbine.
In fact, here are ten hot opportunities trading under $5 we believe could pop with patience.
Opportunity No. 1 – B2Gold Corp. (BTG)
Canada-based B2Gold have declined over the past year, even as gold prices have risen to new all-time highs. That’s a trend that doesn’t look likely to last, given the strong investors interest in gold.
BTG operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. B2G has grown revenues to $1.9 billion in 2023, up from $1.8 billion in 2022.
2022 saw B2Gold mine 1,027,874 ounces in total, the company’s first year of production over 1 million. In 2023, that inched higher to 1,061,060 ounces. And that trend looks on track to continue for full-year 2024. Plus, as gold prices soar higher, which should mean significantly higher revenues, and earnings for shareholders
Meanwhile, B2Gold continued keeping their costs in line, with operating costs of $660 per ounce of gold produced. That allowed B2Gold to earn a profit, one that can likely continue.
B2Gold isn’t stingy with its profits. They pay a 5.5% dividend at today’s prices, and shares appear undervalued relative to their costs, their operational growth, and the potential for more gold price appreciation in the coming years.
Opportunity No. 2 – Planet Labs (PL)
We live in a world of data. Companies, governments, and individuals have soaring data needs. One of those forms of data is satellite data.
Weather data, for instance, can tell a local government about the strength of a potential storm. Or offer a hedge fund a chance to position themselves against a big price change in an agricultural commodity.
Planet Labs is one of the few publicly-traded companies offering satellite data. They sell this data as a subscription service, which creates a lucrative recurring revenue business model.
While the past few years saw an explosion of interest in the satellite space, Planet Labs raised enough capital when they went public to avoid having to raise capital when interest rates are high and interest in startup companies has subsided.
This sub-$5 stock can see some big moves higher as they grow their satellite coverage and add additional features, which can be used to create bigger streams of future income.
Opportunity No. 3 – Ring Energy (REI)
Ring Energy is involved in acquiring oil and gas properties, largely in the major oil deposits of Texas.
The company is building up its acreage position, and largely sells the oil and natural gas that it produces to end users and other purchasers.
Currently, Ring Energy is producing over 20,000 barrels of oil equivalent today, with a mix of about two-thirds oil and one-third natural gas.
Despite being a smaller player, and with energy prices seeing lackluster returns right now, Ring Energy has been cash flow positive for 20 consecutive quarters, or five years.
Ring is working to expand its drilling operations, and lower its total cash operating costs. Plus, Ring is working to reduce the debt on its balance sheet, to avoid getting into any trouble during the occasional chaos that can occur in the energy market.
For nearly a decade, many larger oil companies have focused on growth through acquiring smaller companies, not by drilling or building up an asset portfolio. As companies like Ring continue to grow by developing new properties, they become more attractive to larger players as a buyout target.
The combination of underlying growth and a buyout potential makes a company like Ring Energy attractive as a sub-$5 stock today.
Opportunity No. 4 – VinFast Auto (VFS)
For the time being, investors have become cautious when it comes to electric vehicles. However, there is a high-growth segment of the market that’s booming globally. That’s in the electric motorbike and scooter market.
Vietnam-based VinFast Auto, a major manufacturer of these products, is growing revenues at triple-digit levels. In many Asian markets, an electric-scooter or e-bike makes more sense to own than a full car. VinFast also makes low-cost EVs for that model too.
Unsurprisingly, analysts predict that shares have significant upside ahead. Plus, in May 2024, the company struck a deal with Sony to provide streaming services in its vehicles.
That could create a new market, in addition to additional partnership and revenue opportunities that make for a low-cost global leader in the EV space.
Opportunity No. 5 – Bit Digital (BTBT)
Bit Digital operates as a cryptocurrency miner, focusing on bitcoin. They also offer digital asset staking and treasury management services.
There are several publicly-traded ways to play the growth of cryptocurrencies. These companies tend to move based on the price of bitcoin, and to a lesser extent other cryptocurrencies.
In April 2024, bitcoin underwent its fourth halving. That’s the event that cuts the new supply of bitcoin mined in half. Historically, this drop in new supply has led to a sharp adjustment higher in bitcoin’s prices in the year and a half following the halving.
The move is more than enough to offset the reduced reward for mining bitcoin, which means that bitcoin miners like Bit Digital will likely soar higher in the coming months.
Plus, mining fees can be variable based on network demand. Mining companies can earn significant premiums for meeting that demand on top of their mining operations.
Opportunity No. 6 – Century Casinos (CNTY)
When the economy is expanding, consumers feel good. That leads to higher consumer spending. That includes goods, but can also include services such as vacations and other entertainments.
The casino industry tends to fare well during times of economic expansion. And Century Casinos is an off-the-radar player operating several facilities around the world. That includes casinos, lodging, restaurants, and off-track betting facilities.
Century is seeing revenues growing at a 25% clip year-over-year, which could create the cash follow for further expansion opportunities.
Currently, shares trade at a discount to their book value, and at a big discount to their price-to-sales. That means Century Casinos offers growth at a reasonable value, and shares can see further upside as that growth unfolds or as the market is willing to pay more for its assets – or both.
Opportunity No. 7 – Sterling Bancorp (SBT)
The United States saw the second, third, and fourth largest bank failures in its history in 2023. Sterling Bancorp was caught up in the market shift away from smaller banks.
Consequently, shares have had a lackluster performance for nearly two years. But, as the economy continues to boom and as interest rates start to come down, lending may become a more attractive business. That’s good news for the bank.
Sterling shares currently trade for about a 25% discount to their book value, a sign that the bank is inexpensive relative to its existing loan business. And the bank is cash-rich, having more cash than debt, and even more cash per share than what shares currently trade at.
That’s a rare situation, but a sign that the market continues to undervalue the bank.
Plus, company insiders own a staggering 66% of shares. It’s amazing when even 10% of a company is owned by insiders.
This high level of insider ownership likely means that the company’s owners are highly aligned with the business, and will work to make it a great bank over time. And as that plays out, the share price should rise to reflect that.
Given Sterling’s strong cash position, discount to book value, and favorable banking trends, shares may not stay under $5 for very long.
Opportunity No. 8 – PetMed Express (PETS)
People love their pets, and spending on pets has increased in recent years, in everything from more nutritious pet food to better toys. Pet medications are also on the rise, whether prescribed or not.
PetMed Express plays to that trend with an site that allows customers to buy pet medications for dogs, cats, and horses. PetMed Express also sells other products, from vitamins and flea and tick preventatives to food, beds, crates and other necessities of pet ownership.
Earnings have been strong, as consumers continue to spend money on their pet’s needs.
Plus, PetMed Express is another cash-rich company, with over $50 million in cash on the balance sheet and almost no debt. That accounts for nearly half of the company’s market cap.
PetMed can use that money to expand operations, or potentially buy back shares or pay a dividend. Any such move could boost the share price of this sub-$5 stock.
Opportunity No. 9 – Mizuho Financial Group (MFG)
Sometimes, a low share price masks a large cap company.
With a market cap of $63 billion and a dividend yield of 2.9%, MFG engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, Asia/Oceania, and internationally.
The financial services company looks like a global value play, with shares going for about 11 times forward earnings. Plus, shares trade at a 10% discount to their book value, which suggests that this is another play that has upside for patient investors today.
Investors looking for an inexpensive way to get some international exposure can find it with MFG – and be well paid to wait for financial assets to make new highs in the years ahead.
Opportunity No. 10 – W&T Offshore (WTI)
As the name implies, W&T Offshore looks for oil and gas exploration opportunities, focused on the lucrative Gulf of Mexico area.
Developing and moving offshore energy resources can be more expensive than land-based opportunities. So it’s no surprise that a lagging energy market in the past year has caused shares to underperform too.
However, with the stock trading at 3 times earnings, the market may be undervaluing shares substantially here. Especially if energy prices break out of their sideways trend and start to trend higher. Until then, shares pay a 2.0% dividend.
This could be a big winner for a move higher in energy stocks in the months and years ahead. It’s also possible that a big energy find could lead to a buyout from a larger energy company down the line.