In this article, we will look at the 10 Best Strong Buy Stocks to Invest In Under $5.
On January 28, JoAnne Feeney, Advisors Capital Management partner and portfolio manager, appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends. She was of the view that there is still risk in the market, and investors should have their portfolios positioned with those risks in mind.
One of them, according to her, is a potential government shutdown that is becoming more and more likely, albeit a short one, as it seems that both sides of the aisle are aiming to resolve the budgetary issues with homeland security. The weakening dollar is another risk, which is essentially another tax on the US consumers, as it makes all imports more expensive.
READ ALSO: 11 Best Strong Buy Growth Stocks to Buy According to Hedge Funds and 12 Best Stocks to Buy in 2026 for Beginners.
She also cited the longer-term risks of the growing fiscal debt problem, creating upward pressure on long term interest rates, which is likely to be sustained for a while. In addition, there are broader political risks, so investors need to keep them in mind as they embrace the potential for continued growth in the AI investment period, along with the increased deployment of AI applications in 2026.
With these market trends in view, let’s look at the best strong buy stocks to invest in under $5.
Our Methodology
We used stock screeners to find companies that satisfied the following criteria:
- Stock Price Below $5.
- Consensus Strong Buy Rating.
We then selected the top 10 stocks with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on January 28.
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 Strong Buy Stocks to Invest In Under $5
10. Rezolve AI PLC (NASDAQ:RZLV)
Number of Hedge Fund Holders: 14
Rezolve AI PLC (NASDAQ:RZLV) is one of the best strong buy stocks to invest in under $5. Rezolve AI PLC (NASDAQ:RZLV) announced on January 21 the successful closing of its previously disclosed $250 million registered direct financing, stating that the offering was considerably oversubscribed, supported by a particular group of new long-term holders and anchored by select returning fundamental institutional investors.
The company called the financing a significant inflection point, adding that it materially bolstered its balance sheet and positioned it among the best-capitalized platforms in AI-driven commerce. Rezolve AI PLC (NASDAQ:RZLV) is thus entering 2026 with improved flexibility, supported by considerable liquidity and a consistent strategic direction to accelerate enterprise deployments, execute disciplined M&A, and work towards its revenue objectives.
Rezolve AI PLC (NASDAQ:RZLV) also received several rating updates from analysts at the beginning of the year, with Alliance Global lifting the price target on the stock to $14 from $11 and maintaining a Buy rating on January 14. The firm told investors in a research note that leaving 2025 with $209 million in annual recurring revenue and guiding to $350 million of revenue in 2026 marks a bullish setup.
However, it added that investor concerns may pressure shares, especially those centered around future M&A expenses. Partner-led and direct sales, along with strategic M&A, are anticipated to drive continued adoption, supported by an aggressive expansion of the direct sales force to 60-100 representatives by mid-2026, according to the firm.
Rezolve AI PLC (NASDAQ:RZLV) operates in the mobile commerce industry and develops AI-based mobile commerce and engagement solutions. The company has an innovative engagement platform powered by machine learning and AI. It allows brands, retailers, and manufacturers to develop connections with consumers across desktop and mobile devices.
9. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the best strong buy stocks to invest in under $5. AbCellera Biologics Inc. (NASDAQ:ABCL) announced on January 22 that it is set to announce its full-year 2025 financial results on February 24, 2026. Prior to the earnings release, AbCellera Biologics Inc. (NASDAQ:ABCL) received a rating update from Truist Financial on January 13, which reiterated a Buy rating on the stock.
The rating update came after AbCellera Biologics Inc. (NASDAQ:ABCL) announced on January 12 the dosing of the first patients in the Phase 2 portion of its ongoing Phase 1/2 clinical trial for ABCL635. ABCL635 is a potential first-in-class non-hormonal treatment targeted for moderate-to-severe vasomotor symptoms (VMS) associated with menopause.
The company reported that the transition to Phase 2 came after an interim review of the safety, tolerability, and pharmacodynamic data from healthy volunteers from the Phase 1 portion of the study. It added that the Phase 2 portion is a multicenter, randomized, double-blind, placebo-controlled study specifically designed for the evaluation of the efficacy of ABCL635 in bringing down the severity and frequency of VMS in 80 postmenopausal women.
AbCellera Biologics (NASDAQ:ABCL) solves antibody discovery problems by integrating data science, technology, infrastructure, and interdisciplinary teams. It develops and discovers antibody medicines for indications across therapeutic areas, including metabolic and endocrine conditions, cancer, and autoimmune disorders. It boasts technology platforms that unlock drug classes, modalities, and targets, including T-cell engagers, peptide-MHCs, and transmembrane proteins.
