This article will take a look at the 10 best stocks under $5 in 2021.
Many investors wonder if there are any decent stocks left to be bought at a low price as the stock market continues to reach new highs, dragging share prices up with it. Investors are optimistic about the global economic uptrend with increased consumer spending, and employment gradually begins to recover. As the worldwide economy re-opens, many investors are stirred by the potential growth of certain industries such as healthcare, technology, EV, and solar. These industries have evolved into the most innovative sectors that offer the fastest-growing and most profitable companies to invest in.
Penny Stocks Skyrocketed in 2020
It is possible to profit from penny stocks whether investors want to “day trade,” a trading strategy that involves pumping and dumping a stock. Or, in the words of some Reddit investors and Elon Musk, “HODL” (hold on for dear life). Investing in penny stocks doesn’t eliminate the risk of losing money. Penny stocks bear much higher amounts of trouble, but with intelligent analysis and a proper risk management plan, they can provide a reasonable amount of returns.
The stock market has a lot of opportunities for those who know where to look. At any given point in time there are stocks are guaranteed to soar and become famous down the road, but few can analyze their business models to gauge their actual value. For example, in May 2016, Advanced Micro Devices, Inc. (NASDAQ: AMD) was trading at around $4. Today, the company has a market cap of over $103 billion and was hovering around $85 dollar, as of April 26. The company has become a semiconductor juggernaut, giving giants like Intel a run for their money. Earlier in April, Raymond James started covering Advanced Micro Devices with an Outperform rating and $100 price target. The firm, which also downgraded Intel, said that Advanced Micro Devices, Inc. (AMD) would keep enjoying an edge over Intel amid the latter’s plans to go ahead with in-house production of chips.
One perfect example of a penny stock that skyrocketed in 2020 is Blink Charging Co. (NASDAQ: BLNK). Based in Miami Beach, Florida, the company provides EV charging equipment and services in the U.S. Blink Charging Co. also offers a cloud-based network that enables remote monitoring and management of EV charging stations. On December 28, 2020, shares of BLNK reached highs of $56.12, up 4,390% since those prior lows in March. Blink Charging Co. (NASDAQ: BLNK) currently trades at $37.54 as of April 23, 2021, and has a market cap of $1.5 billion. The stock has gained 2,072% in the last twelve months. The company’s revenue in 2020 climbed 125.8% to $6.2 million from $2.7 million in 2019. In March 2021, Blink Charging has been given a Buy rating by ROTH Capital Partners, LLC analysts. The goal price was set at $ 58.
Former pharmaceutical penny stock Novavax, Inc. (NASDAQ: NVAX) was trading as low as $3.65 in mid-January 2020. Still, after the US Food and Drug Administration (FDA) authorized Fast Track Designation for its seasonal flu vaccine candidate, the stock rose to $4.49. Novavax, Inc. also started a clinical trial of the COVID-19 vaccine in April 2020, and fast forward to November, FDA approved a Fast Track Designation for the NVX-CoV2373. Shares climbed to $101.20 a share after the announcement. HC Wainwright & Co. maintained its buy rating on Novavax, Inc. (NASDAQ: NVAX) on March 12 and raised its price target to $317. As of April 23, 2021, the company has a market cap of $15.7 billion, and the stock trades at $207.61 a share.
Another penny stock that exploded in 2020 was Plug Power Inc. (NASDAQ: PLUG). The New York-based innovative company manufactures hydrogen fuel cells for electric vehicles and stationary power markets in North America and Europe. In 2020, it traded from $3 in January to $37 in December. The stock skyrocketed 521.8% in the last twelve months. The company has a market cap of $16 billion and recorded $337.4 million gross billings in 2020.
One of the most successful yet controversial stocks in 2020 was video game retail store GameStop Corp. (NYSE: GME). In the first half of 2020, the stock was trading at around $4 a share. Shares of GameStop Corp. notably soared in January 2021 after a group of mainly millennial traders on the Reddit message board WallStreetBets executed a short squeeze and a gamma squeeze, boosting the stock from under $20 at the start of the year to as high as $483 on January 28. As of April 23, 2021, the company has a market cap of $11.1 billion, and stock trades at $151.18 a share. GameStop Corp. (NYSE: GME) has gained 2,497.59% in the last twelve months.
Pixabay/Public Domain
Nokia Corporation (NYSE: NOK)
If you are a beginner investor looking for cheap stocks to buy, our list of the best stocks under $5 in 2021 will give you light on excellent low-priced stocks with big upside potential. Nokia Corporation (NYSE: NOK) is one of the best stocks to buy under $5 in 2021. NOK shares increased 21.4% over the past twelve months mainly due to its 5G network deals with American telecom giants AT&T Inc. (NYSE: T) and T-Mobile US, Inc. (NASDAQ: TMUS). The company posted an 11% increase year on year on enterprise growth in full-year 2020.
Like the penny stock market, the hedge fund industry is also facing some new trends that are shattering the age-old conventions and causing even the most famous investors to struggle to sustain their profits. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best stocks under $5 in 2021.
Best Stocks Under $5 in 2021
10. Electrameccanica Vehicles Corp. (NASDAQ: SOLO)
Price as of April 23, 2021: $4.32 per share
Number of Hedge Fund Holders: 7
We start our list of the 10 best stocks under $5 in 2021 with Canadian EV company Electrameccanica Vehicles Corp. (NASDAQ: SOLO). The Vancouver-based EV manufacturer also develops custom build vehicles. The company has a market cap of $478.72 million and revenue of $568,521 in 2020. In March 2021, the Canadian EV firm announced that it would be assembling its U.S. facility and technical engineering center in Phoenix, Arizona. The Arizona facility will produce up to 20,000 SOLOs per year, the company’s EV flagship, and employing up to 500 workers. Shares of SOLO jumped 325.2% over the past twelve months.
There were 7 hedge funds that reported owning stakes in Electrameccanica Vehicles Corp. at the end of the fourth quarter, up from 3 funds a quarter earlier. The total value of these stakes at the end of Q4 is $7.48 million. On March 24, Aegis Capital keeps its buy recommendation on Electrameccanica Vehicles and increases its price target to $7.
9. LiveXLive Media, Inc. (NASDAQ: LIVX)
Price as of April 23, 2021: $3.99
Number of Hedge Fund Holders: 8
Ranking 9th on the best stocks under $5 in 2021 is digital media company LiveXLive Media, Inc. (NASDAQ: LIVX). California-based LiveXLive Media, Inc. digitizes live events so that people can watch them from the comfort of their own homes. The company provides a global network for live streaming and on-demand audio, video, and podcast content in music, comedy, and pop culture, with over 1000 scheduled events in 2020.
The company has a market cap of $271 million. LiveXLive Media, Inc.’s revenue in the fourth quarter of 2020 came in at $9.9 million, up from $9.2 million in 2019. The rise was primarily due to increased subscription revenue, with paying subscriptions increasing by 25% year over year to 849,000 at the end of the fourth quarter. Shares of LIVX climbed 103% over the past twelve months.
There were 8 hedge funds that reported owning stakes in LiveXLive Media, Inc. at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $10.8 million.
8. Pixelworks, Inc. (NASDAQ: PXLW)
Price as of April 23, 2021: $3.19
Number of Hedge Fund Holders: 9
Ranking 8th in our list of the 10 best stocks under $5 in 2021 is semiconductor manufacturer Pixelworks, Inc. (NASDAQ: PXLW). California-based Pixelworks, Inc. designs and distributes cutting-edge video and pixel-processing chips and applications. The company has 338 patents related to the visual display of digital image data in its intellectual property portfolio. YTD shares of PXLW increased 13.12% due to its commercial partnership with consumer electronics manufacturer TCL Group and smartphone producer OnePlus. The company has a market cap of $159 million and revenue of $40.9 million in 2020.
There were 9 hedge funds that reported owning stakes in Pixelworks, Inc. at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $10.06 million.
7. Abeona Therapeutics Inc. (NASDAQ: ABEO)
Price as of April 23, 2021: $1.62
Number of Hedge Fund Holders: 11
New York-based biopharmaceutical company Abeona Therapeutics Inc. (NASDAQ: ABEO) ranks 7th on the list of the best stocks under $5 in 2021. The company was founded in 1974 to develop gene and cell therapies for life-threatening rare genetic disorders, including Sanfilippo syndrome types A and B. The company has a market cap of $150.5 million and revenue of $10 million in 2020. Shares of ABEO jumped 3.18% year to date.
There were 11 hedge funds that reported owning stakes in Abeona Therapeutics Inc. at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $25.3 million.
6. NexGen Energy Ltd. (NYSE: NXE)
Price as of April 23, 2021: $3.59
Number of Hedge Fund Holders: 13
Vancouver-based uranium exploration and development company NexGen Energy Ltd. (NYSE: NXE) ranks 6th in our list of the 10 best stocks under $5 in 2021. NexGen Energy Ltd. specializes in the acquisition, discovery, valuation, and production of uranium assets. The company has a market cap of $1.7 billion. Shares of NXE surged 149% over the past twelve months.
There were 13 hedge funds that reported owning stakes in NexGen Energy Ltd. at the end of the fourth quarter, up from 6 funds a quarter earlier. The total value of these stakes at the end of Q4 is $30.3 million.
5. Express, Inc. (NYSE: EXPR)
Price as of April 23, 2021: $3.15
Number of Hedge Fund Holders: 14
Ranking 5th in our list of the 10 best stocks under $5 in 2021 is apparel retail firm Express, Inc. (NYSE: EXPR). Columbus-based fashion retailer distributes its modern apparel collections through its e-commerce site and app and over 360 brick and mortar stores.
The company has a market cap of $205 million and revenue of $1.2 billion in 2020. Susan Anderson of B. Riley Securities maintained a neutral rating on Express in a note published on March 11 but raised the firm’s one-year price target from $1.50 per share to $3.50 per share. The stock is popular among Reddit’s WallStreetBets crowd and has gained 77% over the past twelve months.
There were 14 hedge funds that reported owning stakes in Express, Inc. at the end of the fourth quarter, up from 13 funds a quarter earlier. The total value of these stakes at the end of Q4 is $13.8 million.
4. CTI BioPharma Corp. (NASDAQ: CTIC)
Price as of April 23, 2021: $2.45
Number of Hedge Fund Holders: 16
Seattle-based biopharmaceutical company CTI BioPharma Corp. (NASDAQ: CTIC) ranks 4th in our list of the 10 best stocks under $5 in 2021. The company was founded in 1991 and specialized in the commercialization of novel targeted therapies for blood-related cancers.
The company has a market cap of $218.7 million. The company’s cash, cash equivalents, and short-term assets totaled $52.5 million as of December 31, 2020, compared to $33.7 million as of December 31, 2019. Shares of CTIC increased 126.8% over the past twelve months.
There were 16 hedge funds that reported owning stakes in CTI BioPharma Corp. at the end of the fourth quarter, up from 6 funds a quarter earlier. The total value of these stakes at the end of Q4 is $80 million.
Copyright: dolgachov / 123RF Stock Photo
3. Waitr Holdings Inc. (NASDAQ: WTRH)
Price as of April 23, 2021: $2.56
Number of Hedge Fund Holders: 17
Ranking 3rd in our list of 10 best stocks under $5 in 2021 is food delivery platform Waitr Holdings Inc. (NASDAQ: WTRH). The Louisiana-based software company provides on-demand food ordering and delivery services in the U.S. According to data firm Second Measure, Waitr only controls about 1% of the online food distribution market in the United States. However, the company managed to continue to rise steadily in sales and, after replacing full-time drivers with independent contractors in 2020, it became profitable.
The company has a market cap of $288.9 million. In 2020, Waitr’s sales increased by 7% to $204.3 million. Shares of WTRH rose 134.9% over the past twelve months. Waitr Holdings Inc. was upgraded from Hold to Buy by Deutsche Bank analysts on March 8, with a price target of $4, up from $3.80.
There were 17 hedge funds that reported owning stakes in Waitr Holdings Inc. at the end of the fourth quarter, up from 13 funds a quarter earlier. The total value of these stakes at the end of Q4 is $55.9 million.
India Picture/Shutterstock.com
2. Nokia Corporation (NYSE: NOK)
Price as of April 23, 2021: $4.2
Number of Hedge Fund Holders: 19
Ranking 2nd in our list of the 10 best stocks under $5 in 2021 is Nokia Corporation. The Finnish telecom and consumer electronic company was founded in 1865 and has grown to be one of the largest mobile phone manufacturers in the world. The company also offers networking solutions such as Nuage Networks. China Mobile Cloud will use Nuage Networks’ Software-Defined Networking (SDN) solution to deploy its public cloud service across the country, as announced by Nokia in April 2021.
The company has a market cap of $24.1 billion. Nokia Corporation’s revenue in 2020 came in at $26.5 billion. Shares of NOK jumped 21.4% over the past twelve months. Northland scores NOK as an Outperform in March 2021, with a $6 price target.
There were 19 hedge funds that reported owning stakes in Nokia Corporation at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $186.4 million.
1. BioDelivery Sciences International, Inc. (NASDAQ: BDSI)
Price as of April 23, 2021: $3.48
Number of Hedge Fund Holders: 19
Topping the 10 best stocks under $5 in 2021 is pharmaceutical firm BioDelivery Sciences International, Inc. (NASDAQ: BDSI). North Carolina-based BioDelivery Sciences International, Inc. develops and commercializes pharmaceutical drugs for chronic conditions.
The company has a market cap of $344.9 million. BioDelivery Sciences International, Inc’s total net revenue came in at $156.5 million in 2020, up 40% from income in 2019. The opioid-containing drug BELBUCA was the key driver of this revenue growth, with net sales of $35.6 million. Shares of BDSI surged 4% over the last five days.
There were 19 hedge funds that reported owning stakes in BioDelivery Sciences International, Inc. at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $98.6 million. On March 11, analysts from HC Wainwright & Co. maintained Buy on BioDelivery Sciences International but lowered the price target to $5.5.
You can also take a peek at the 10 Best Telecom Stocks To Buy Right Now and 10 Best Travel Stocks To Buy Right Now. Also check out Top 30 Video Games Of All Time.
Follow Insider Monkey on Twitter
Suggested articles:
This article is originally published at Insider Monkey.
