On February 27, Chad Larson, senior portfolio manager at MLD Wealth of CG Wealth Management, joined BNN Bloomberg to discuss the markets as investors rotate out of big tech. The month of February ended on a down note for the markets. There is anxiety regarding potential AI disruption and the massive capital expenditures being funneled into data centers and server farms. Larson joined to discuss these themes and noted that as of late February 2026, the US market was barely up for the year, with every MAG7 tech stock experiencing a decline.
Larson explained that a major rotational trade is currently underway. Investors are moving away from the crowded tech trade that has dominated for years, leading to a sense of fatigue. Even positive news, such as an earnings beat, resulted in the stock being traded down, suggesting that the market has already priced in high expectations. Larson observed that leadership is rotating toward more predictable, stable cash flows in sectors like industrials and materials. He summarized this shift with the sentiment that boring is beautiful again, as investors seek stability amidst heightened volatility and intraday fluctuations in the VIX.
He also mentioned that clients are becoming increasingly nervous about their large embedded gains in tech. Many investors waited until the new year to sell to defer taxes, but Larson cautioned that saying goodbye to long-term winners is emotionally difficult. He warned against the common mistake of cutting flowers and watering weeds, selling winning stocks too early while holding onto losing ones, noting that an investment thesis should not change simply because of price action.
That being said, we’re here with a list of the 10 best low cost stocks to buy under $5.
Our Methodology
We used screeners to identify low-cost stocks that are trading below $5 per share, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on March 3.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Low Cost Stocks to Buy Under $5
10. AtaiBeckley Inc. (NASDAQ:ATAI)
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best low cost stocks to buy under $5. On March 3, AtaiBeckley announced a successful End-of-Phase 2 meeting with the FDA regarding BPL-003, a proprietary intranasal formulation of mebufotenin benzoate for treatment-resistant depression/TRD. The FDA indicated support for the proposed Phase 3 program, providing constructive feedback on the design and safety database requirements for this chronic indication.
This milestone follows the Breakthrough Therapy designation granted in late 2025, with the company remaining on track to initiate the Phase 3 program in the second quarter of 2026. The Phase 3 program consists of two parallel pivotal studies, ReConnection 1 and ReConnection 2, followed by a 52-week open-label extension to assess long-term safety and individualized retreatment. ReConnection 1 will evaluate single doses of 8 mg and 4 mg against a placebo to characterize the dose-response relationship, while ReConnection 2 will investigate a two-dose induction model on Day 1 and Day 15.
Designed to fit within existing interventional psychiatry workflows, BPL-003 aims to offer a rapid and durable treatment option with an approximately two-hour in-clinic experience. AtaiBeckley Inc. (NASDAQ:ATAI) believes that this model addresses significant barriers for patients and providers by requiring only a few treatments per year.
AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company that researches, develops, and commercializes mental health treatments in the US, Germany, and Canada.
9. Hertz Global Holdings Inc. (NASDAQ:HTZ)
Hertz Global Holdings Inc. (NASDAQ:HTZ) is one of the best low cost stocks to buy under $5. On February 26, Hertz Global reported a financial turnaround for Q4 and the full-year 2025, driven by its Back-to-Basics strategy. The company achieved a $2 billion year-over-year improvement in profitability, with 2025 revenue reaching $8.5 billion. The CEO highlighted that these gains were supported by a 44% improvement in depreciation per unit and a 200-basis-point increase in fleet utilization.
Despite a complex environment, Hertz delivered its strongest year-over-year revenue performance in nearly two years, ending Q4 with $1.5 billion in liquidity. Q4 results faced over $100 million in transitory headwinds, including a government shutdown, technology vendor outages, and high vehicle recall levels. Additionally, a non-cash depreciation charge of $60 million was recorded due to revised third-party residual value forecasts.
However, operational discipline led to a 6% year-over-year improvement in adjusted direct operating expenses per transaction day. Customer experience also saw a major boost, with the Net Promoter Score increasing by nearly 50% throughout the year, reflecting better fleet quality and service reliability. For 2026, Hertz Global Holdings Inc. (NASDAQ:HTZ) expects mid-single-digit revenue growth in the first quarter, supported by a positive pricing environment and improving residual values.
Hertz Global Holdings Inc. (NASDAQ:HTZ) operates as a vehicle rental company. It has two segments: Americas RAC and International RAC.
8. Tuya Inc. (NYSE:TUYA)
Tuya Inc. (NYSE:TUYA) is one of the best low cost stocks to buy under $5. On March 3, Tuya reported a 7.8% year-over-year increase in total revenue for the full year 2025, reaching $320 million. The company achieved a non-GAAP net margin of 24.9% and a net income of $80.1 million. By the end of 2025, Tuya maintained a strong financial position with over $1 billion in cash and cash equivalents, providing the flexibility to navigate global economic shifts and invest in new AI-powered initiatives.
Growth was driven across multiple segments, with PaaS revenue exceeding $230 million and SaaS and other business revenue rising 13.4% to $44.8 million. The company also saw a 37% surge in recurring services revenue and an expansion of its developer ecosystem, which now exceeds 1.8 million registered AI + IoT developers. To accelerate AI adoption, Tuya introduced ‘Hey Tuya,’ an AI-powered Smart Life assistant, and reported a cumulative total of ~16,000 AI agents active on its platform.
Despite these gains, the company faces challenges, including conservative customer procurement cycles and geopolitical risks that impact international operations. While recent tariff reductions are viewed positively, management noted that market demand has not reacted immediately, as customers remain cautious of the dynamic global situation. Additionally, Tuya Inc. (NYSE:TUYA) is monitoring semiconductor and chipset supply constraints, though it currently maintains stable inventory levels and leverages its position as a significant buyer to mitigate potential impacts on gross margins.
Tuya Inc. (NYSE:TUYA) provides AI cloud platform services in the People’s Republic of China. The company has a partnership with Shanghai Luobo Intelligent Technology Co., Ltd. for the development of an AI companion powered by cellular connectivity.
7. Nuvation Bio Inc. (NYSE:NUVB)
Nuvation Bio Inc. (NYSE:NUVB) is one of the best low cost stocks to buy under $5. On March 2, Nuvation Bio (NUVB) reported a pivotal 2025 marked by the FDA approval and rapid commercial launch of Ibtrozi (Taletrectinib) for ROS1-positive non-small cell lung cancer. With 432 new patient starts by year-end, the drug’s uptake outpaced prior class competitors by sixfold. Financially, the company reported $41.9 million in Q4 revenue, supported by a strong cash position of $529.2 million following international partnerships with Eisai and Nippon Kayaku.
While early revenue was impacted by a high volume of late-line patients with shorter treatment durations, management expects revenue stability to improve as first-line patient penetration increases through 2026. The company is emphasizing Ibtrozi’s differentiated clinical profile, specifically its 50-month median duration of response in TKI-naive patients and its favorable safety profile. The CEO highlighted the drug’s unique measured inhibition of TRKB, which supports intracranial disease control while avoiding the severe neurological toxicities seen in other therapies.
To expand the drug’s reach, Nuvation Bio has initiated the TRUST-4 Phase 3 study in the adjuvant setting, targeting early-stage patients who require high tolerability for long-term adherence. Beyond Ibtrozi, Nuvation Bio Inc. (NYSE:NUVB) is advancing its second lead program, safusidenib, for IDH1-mutant glioma. The company recently launched the Phase 3 SIGMA trial for high-grade patients, who currently have no approved targeted options, with a projected readout in 2029. Additionally, a smaller Phase 2 cohort for grade 3 oligodendroglioma is underway with results expected by 2027, potentially offering an accelerated approval pathway.
Nuvation Bio Inc. (NYSE:NUVB) is a clinical-stage biopharmaceutical company that develops therapeutic candidates for oncology. Its lead product candidate is taletrectinib, which is an ROS1 inhibitor for the treatment of patients with ROS1+ non-small cell lung cancer.
6. i-80 Gold Corp. (NYSEAMERICAN:IAUX)
i-80 Gold Corp. (NYSEAMERICAN:IAUX) is one of the best low cost stocks to buy under $5. On February 20, i-80 Gold announced that it achieved its 2025 production guidance with a consolidated gold output of nearly 32,000 ounces, resulting in a gross profit of $11.5 million for the year. This represents a financial turnaround from the gross loss reported in 2024. To support continued growth, the company secured a $500 million financing package, providing the necessary capital to advance its development pipeline without balance sheet constraints.
Key milestones included the commencement of construction at the Archimedes underground mine and the completion of the engineering study for the Lone Tree process plant refurbishment. Despite these positive production figures, i-80 Gold Corp. (NYSEAMERICAN:IAUX) reported a net loss of nearly $200 million for the year due to elevated expenses related to exploration, evaluation, and pre-development.
Significant capital expenditures are planned for the Lone Tree autoclave restart, which is projected to cost $430 million in the current inflationary environment. Additionally, the company faced operational hurdles such as timing delays with third-party sulfide processing and the need for expanded dewatering infrastructure at Granite Creek to manage water-related impacts. For 2026, i-80 Gold plans to use higher gold prices and its recent recapitalization to accelerate technical work and permitting at Mineral Point.
i-80 Gold Corp. (NYSEAMERICAN:IAUX) is a mining company that explores and advances gold and silver mineral deposits in the US. It also explores for polymetallic deposits.
5. BigBear.ai Holdings Inc. (NYSE:BBAI)
BigBear.ai Holdings Inc. (NYSE:BBAI) is one of the best low cost stocks to buy under $5. On March 2, BigBear.ai Holdings announced that it concluded 2025 reporting $462 million in total cash and investments and a 90% reduction in total debt. This transformation was fueled by $693 million in proceeds from equity facilities and the strategic settlement of 2029 convertible notes. The company also expanded its market footprint through the major acquisition of Ask Sage in late 2025 and CargoSeer in early 2026, alongside a new expansion into the Middle East, positioning the firm for a projected 17% revenue growth in the coming year.
Financial results for Q4 2025 showed revenue of $27.3 million, a decrease from the previous year due to lower volumes in Army programs and the non-recurrence of high-margin contracts. While the company reported a net loss of $5.8 million for the quarter, which was an improvement over the $138.2 million loss in Q4 2024, the results were impacted by a $53.4 million impairment of long-lived assets and an adjusted EBITDA loss of $10.3 million.
BigBear.ai Holdings Inc. (NYSE:BBAI) now projects full-year 2026 revenue to fall between $135 and $165 million. The CEO emphasized that the focus on national security and trade aligns with the US Government’s AI Acceleration Strategy, providing a solid foundation for scalable growth. With a cleared balance sheet and specialized tech assets, the company aims to capitalize on the increasing demand for secure, flexible AI decision intelligence solutions among global partners and government operators.
BigBear.ai Holdings Inc. (NYSE:BBAI) provides AI-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions.
4. Ardagh Metal Packaging (NYSE:AMBP)
Ardagh Metal Packaging (NYSE:AMBP) is one of the best low cost stocks to buy under $5. On February 26, Ardagh Metal Packaging reported financial results for 2025, with adjusted EBITDA reaching $739 million, which was a 10% year-over-year increase that exceeded initial guidance. This growth was fueled by a 3% rise in global shipments, effective cost controls, and a favorable product mix, particularly in North America, where energy drinks and sparkling water now represent over a quarter of sales.
In a move to simplify its capital structure, Ardagh Metal Packaging executed a $1.3 billion green bond refinancing in December. While this raised net leverage to 5.3x, the transaction extended debt maturities beyond 2028 and eliminated $25 million in annual preferred dividends. These actions are expected to generate ~$10 million in annual cash savings. Despite facing near-term headwinds from tight metal supply, projected to cost between $5 and $8 million in H1 2026, the company’s disciplined financial management earned recent credit rating upgrades from both S&P and Fitch.
Looking ahead to 2026, Ardagh Metal Packaging (NYSE:AMBP) has guided adjusted EBITDA to a range of $750 to $775 million. The year is being characterized as a transition period for North America, where a slight volume decline is expected before a projected recovery in 2027, while Europe and Brazil are anticipated to see growth in line with the broader industry.
Ardagh Metal Packaging (NYSE:AMBP), together with its subsidiaries, operates as a metal beverage can company in Europe, North America, and Brazil.
3. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (NASDAQ:PLUG) is one of the best low cost stocks to buy under $5. On March 2, Plug Power announced the earnings report for 2025, where the company made $710 million in total revenue, marking a 12.9% year-over-year increase. Most notably, the company reached a positive gross margin in Q4 2025, which was a recovery from a 122.5% margin loss in the same period the previous year. This improvement was driven by ‘Project Quantum Leap,’ which is a strategic initiative focused on price increases, manufacturing efficiencies, and workforce streamlining, which the company credits for establishing sustainable profitability in its material handling services.
The company expanded its global footprint, shipping over 300 megawatts of electrolyzers across six continents and securing $187 million in electrolyzer revenue. Key milestones included the commissioning of a 100-megawatt array in Portugal and a liquid hydrogen supply contract with NASA. To support liquidity through 2026, Plug Power Inc. (NASDAQ:PLUG) entered into a $275 million asset monetization agreement related to US data centers and restructured its debt to extend maturities and reduce future interest expenses.
The announcement coincided with a leadership transition, as Jose Luis Crespo assumed the role of CEO on March 2 as well. Formerly the company’s President and CRO, Crespo is tasked with converting this operational momentum into long-term financial performance. The company’s roadmap remains ambitious: targeting positive EBITDA by Q4 2026, positive operating income by the end of 2027, and achieving full profitability by 2028.
Plug Power Inc. (NASDAQ:PLUG) develops hydrogen fuel cell product solutions in North America, Europe, Asia, and internationally.
2. ICL Group Ltd (NYSE:ICL)
ICL Group Ltd (NYSE:ICL) is one of the best low cost stocks to buy under $5. On February 18, ICL Group reported a 5% increase in annual sales to $7,153 million for 2025, supported by a solid Q4 performance where revenue rose 6% to $1.7 billion. While the company achieved an adjusted EBITDA of $1,488 million for the full year, it recorded a GAAP net loss of $73 million in Q4 due to $239 million in unusual adjustments.
These charges were driven by a strategic pivot, including the discontinuation of LFP battery materials projects in St. Louis and Spain, alongside an $80 million provision following a Supreme Court ruling on water extraction fees in the Dead Sea. The company is currently refocusing its capital on high-growth specialty engines, specifically specialty crop nutrition and food solutions. As part of this transition, ICL acquired a 49.9% stake in Bartek Ingredients to enhance its food additives portfolio and is conducting a strategic review of non-core assets, such as its Boulby operations in the UK.
For 2026, ICL Group Ltd (NYSE:ICL) issued an adjusted EBITDA guidance range of $1.4 to $1.6 billion, with potash sales volumes expected to reach between 4.5 and 4.7 million metric tons. Management expects the momentum from its specialty businesses and recent M&A activity to drive long-term profitable growth.
ICL Group Ltd (NYSE:ICL), together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. The company operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions.
1. VinFast Auto Ltd. (NASDAQ:VFS)
VinFast Auto Ltd. (NASDAQ:VFS) is one of the best low cost stocks to buy under $5. On February 23, VinFast Middle East signed a Memorandum of Understanding/MoU with PlusX Electric, which is a DEWA-approved EV charging and mobility provider, to enhance the EV ownership experience in the UAE. This partnership focuses on increasing charging accessibility and customer support through reliable infrastructure, responsive roadside assistance, and integrated digital services.
By combining VinFast’s growing vehicle presence with PlusX Electric’s expertise, the collaboration aims to build a seamless and convenience-led ecosystem for drivers in the region. Under the agreement, the two companies will deploy Portable EV Charging Pods and offer On-Demand Mobile Charging to address flexible needs and time-sensitive situations.
The initiatives also include emergency roadside charging to reduce range anxiety and the potential for PlusX Electric to become a preferred partner for the installation and after-sales support of home and office chargers. For commercial segments, the partners will explore scalable solutions such as DC Fast Charger leasing and dedicated mobile support to ensure operational continuity for fleet customers. Beyond physical infrastructure, VinFast Auto Ltd. (NASDAQ:VFS) and PlusX Electric will investigate digital integration to streamline service bookings and updates through partner platforms, including the potential for EV insurance offerings via the PlusX App.
VinFast Auto Ltd. (NASDAQ:VFS) designs and manufactures electric vehicles, e-scooters, and e-buses in Vietnam, Canada, and the US. The company has three segments: Car, E-scooters, and Ebus.
While we acknowledge the potential of VFS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VFS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Most Promising Micro-Cap Stocks According to Analysts.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
