In this article, we will discuss the 10 Best NASDAQ Stocks Under $5 to Buy Right Now.
On April 28, Gabelli’s John Belton joined ‘Closing Bell Overtime’ on CNBC to discuss how market expectations and overall investor sentiment have improved recently. Belton countered this by noting that the specific stocks being discussed had actually underperformed the broader market over the previously shown timeframe. Because of this underperformance, he believes that a portion of the strength seen in Q1 has already been pre-traded by investors. He observed very strong trends occurring across cloud businesses in particular, and added that digital advertising companies are also performing quite well. However, Belton characterized the current setup as a combination of strong underlying fundamentals mixed with high expectations, making it difficult to predict exactly how these stocks will respond on the actual day they release their earnings. Despite the near-term uncertainty, he stated that these opportunities remain highly interesting when looking at them from a longer-term perspective.
The March 30 low and a ceasefire in Iran coincided with the emergence of the “mythos model,” acting as an accelerant that revived Mag 7 stocks and raised the question of whether a rising tide of cloud revenue is lifting all boats or if hardware frenzies indicate indiscriminate buying ahead of upcoming Wednesday earnings. Belton acknowledged this complexity but emphasized that the mythos model is just one recent catalyst, stating that he is more excited that Anthropic and OpenAI have more than doubled their annualized run rate revenue since the start of the year to ~$70 billion; this direct AI monetization completely flips the previous debate that companies were spending heavily on infrastructure without monetizing it.
Our Methodology
We used screeners to identify NASDAQ 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 are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.
Note: All data was sourced on May 15.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best NASDAQ Stocks Under $5 to Buy Right Now
10. Invivyd Inc. (NASDAQ:IVVD)
Number of Hedge Fund Holders: 35
Invivyd Inc. (NASDAQ:IVVD) is one of the best NASDAQ stocks under $5 to buy right now. On May 14, Invivyd reported earnings for Q1 2026, highlighted by $13.7 million in PEMGARDA net product revenue, which marks a 22% growth compared to Q1 2025. The company ended the quarter with $184.2 million in cash and cash equivalents, supplemented by ~$20 million in gross proceeds from an April at-the-market offering. R&D expenses rose to $30.7 million, and selling, general, & administrative expenses increased to $25.1 million, resulting in a net loss of $41.4 million for the quarter.
The increase in operating expenses was primarily driven by the ongoing DECLARATION Phase 3 clinical trial for VYD2311, an investigational COVID-19 monoclonal antibody candidate. Initial full enrollment for the trial was achieved in March, and a subsequent sample size re-estimation in April added ~500 subjects, shifting the anticipation of top-line data to Q3. Based on an ad hoc safety review, the trial’s Independent Data Monitoring Committee recommended reducing post-dose monitoring from two hours to thirty minutes, eliminated certain follow-up visits, and updated eligibility to include pregnant and breastfeeding women.
In laboratory assessments, both PEMGARDA and VYD2311 showed continued in vitro neutralizing activity against the SARS-CoV-2 BA.3.2.2 (“Cicada”) variant. Looking forward, Invivyd Inc. (NASDAQ:IVVD) is preparing for the LIBERTY Phase 3 trial comparing VYD2311 to mRNA vaccines, a Phase 2 trial for Long COVID and vaccine injury, and pediatric evaluations via the DRUMMER trial. Beyond COVID-19, the company is advancing its pipeline with development plans for VMS063 for measles and VBY329 for pediatric respiratory syncytial virus/RSV prophylaxis, targeting investigational new drug readiness for both candidates in late 2026.
Invivyd Inc. (NASDAQ:IVVD) develops next‑generation antibody drugs aimed at long‑lasting effectiveness against evolving viruses, utilizing a proprietary platform to deliver durable therapies.
9. PepGen Inc. (NASDAQ:PEPG)
Number of Hedge Fund Holders: 36
PepGen Inc. (NASDAQ:PEPG) is one of the best NASDAQ stocks under $5 to buy right now. On May 12, PepGen reported Q1 2026 financial results, recording a net loss of $17.8 million, or $0.26 per share, compared to a net loss of $30.2 million for Q1 2025. R&D expenses decreased to $13.0 million, down from $25.4 million in the prior year’s Q1, while G&A expenses held steady at $5.9 million. The company concluded the quarter with $132.3 million in cash, cash equivalents, and marketable securities, which it expects will provide a sufficient capital runway to fund operations into H2 2027.
On the clinical front, PepGen achieved full enrollment for the 10 mg/kg cohort of its Phase 2 FREEDOM2-DM1 multiple ascending dose trial for PGN-EDODM1, an investigational oligonucleotide therapy for myotonic dystrophy type 1. Topline results from the initial 5 mg/kg cohort showed a favorable safety profile alongside promising splicing and clinical data, supporting ongoing dose escalation. Data from the 10 mg/kg cohort remains on track for release in H2 2026, while the subsequent 12.5 mg/kg cohort data is anticipated in 2027.
Regulatory expansions continue with clearance to initiate the FREEDOM2 trial in South Korea, Australia, and New Zealand, alongside active clinical sites in Canada and the UK. Meanwhile, the US FDA placed a partial clinical hold on the study regarding historical preclinical pharmacology and toxicology data. PepGen Inc. (NASDAQ:PEPG) is working to resolve the agency’s inquiries and noted that the timeline for the ongoing clinical study has not been impacted.
PepGen Inc. (NASDAQ:PEPG) is a clinical-stage biotech company using its proprietary Enhanced Delivery Oligonucleotide/EDO platform to develop therapies for severe neuromuscular and neurological diseases. By using cell-penetrating peptides to improve therapeutic uptake, the company aims to target the root causes of these serious conditions.
