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.
8. Butterfly Network, Inc. (NYSE:BFLY)
Number of Hedge Fund Holders: 21
Butterfly Network, Inc. (NYSE:BFLY) is one of the best strong buy stocks to invest in under $5. On January 21, Craig-Hallum lifted the price target on Butterfly Network, Inc. (NYSE:BFLY) to $5.25 from $3.25 while maintaining a Buy rating on the shares. The rating update followed the release of the company’s latest announcements, which included at least 17% year-over-year Q4 revenue growth, implying $26.2 million compared to the Street’s estimate of $25.7 million and the full year landing at $92.3 million. The firm attributed the majority of the growth to the core business, adding that some Q4 revenue did come from the Midjourney partnership.
In another development, Lake Street also reiterated a Buy rating on Butterfly Network, Inc. (NYSE:BFLY) on January 20 and raised the associated price target to $5.50 from $4. The firm anticipates investors from both inside and outside of healthcare to notice the “platform payoff” stemming from several advancing areas of the company’s business, and also expects multiple expansion this year.
Butterfly Network, Inc. (NYSE:BFLY) announced on January 12 that it expects to report at least 17% year-over-year revenue growth for the fourth quarter ended December 31, 2025, with the company entering 2026 with solid momentum and continued growth in its handheld ultrasound business.
Butterfly Network (NYSE:BFLY) is a digital health company specializing in transforming care through intuitive software, semiconductor-based ultrasound technology, services, and educational offerings. The company has two portable ultrasound devices on the market: the third-generation Butterfly iQ3 and the second-generation Butterfly iQ+. The Ultrasound-on-Chip technology powers both technologies, allowing them to undertake whole-body imaging on a single handheld probe through digital semiconductor technology.
7. AtaiBeckley Inc. (NASDAQ:ATAI)
Number of Hedge Fund Holders: 21
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best strong buy stocks to invest in under $5. AtaiBeckley Inc. (NASDAQ:ATAI) received a rating update from H.C. Wainwright on January 28, which reiterated a Buy rating on the stock and set a price target of $15.
In another development, AtaiBeckley Inc. (NASDAQ:ATAI) was initiated with a Buy rating at Guggenheim on January 20, with the firm setting an $11 price target. Guggenheim based the rating on the company’s position as “a differentiated leader in next-generation psychiatry”, stating that the recent merger with Beckley Psytech allows complete ownership of BPL-003, the lead asset, which has exhibited “compelling” Phase IIIb efficacy and durability in treatment-resistant depression. The firm believes that BPL-003 is “uniquely positioned for rapid clinical adoption and commercial scale.”
JonesTrading also maintained a Buy rating on AtaiBeckley Inc. (NASDAQ:ATAI) on January 16 and set a price target of $16. The firm based the rating update on the company’s market opportunity and advancing clinical pipeline, stating that it is positioned for a data-rich 2026. Pivotal Phase II results are anticipated from all three of the company’s clinical programs in 2026, which hold the potential to considerably de-risk the story. JonesTrading also considers the lead compounds BPL-003 and VLS-01 to be well-suited for treatment-resistant depression, primarily because of their short duration of action supporting a clinic-based model similar to the commercial framework by esketamine.
Headquartered in Germany, AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
6. Gold Royalty Corp (NYSE:GROY)
Number of Hedge Fund Holders: 23
Gold Royalty Corp (NYSE:GROY) is one of the best strong buy stocks to invest in under $5. On January 26, Scotiabank lifted the price target on Gold Royalty Corp (NYSE:GROY) to $6 from $5 while maintaining an Outperform rating on the shares. The firm told investors that it is updating price targets for the stocks under its coverage in the Gold and Precious Minerals sector, raising both the gold and silver forecasts in a backdrop featuring geopolitical and economic uncertainty, along with strong central bank buying.
Maxim also raised the price target on Gold Royalty Corp (NYSE:GROY) to $7 from $5 on January 23 and maintained a Buy rating. The firm adjusted its model to take into account the increased gold prices and gold royalty acquisitions, trends that reflect that the company has a positive outlook for both gold prices and production growth.
The rating updates came after Gold Royalty Corp (NYSE:GROY) announced on January 21 the preliminary results for fiscal Q4 2025, stating that it achieved another record quarter of revenue and Total Revenue, Land Agreement Proceeds and Interest. Total Revenue, Land Agreement Proceeds and Interest for the quarter grew by around 37% compared to Q4 2024 to $5.2 million (revenue of $4.5 million), equating to 1,255 gold equivalent ounces. For 2025, Total Revenue, Land Agreement and Proceeds and Interest also grew by 38% from 2024 to a record $17.7 million (revenue of $15.6 million), equating to 5,173 GEOs.
Gold Royalty Corp (NYSE:GROY) operates as a precious metals-focused royalty company offering financing solutions to the metals and mining industry.
5. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 25
Bitfarms Ltd. (NASDAQ:BITF) is one of the best strong buy stocks to invest in under $5. On January 26, Bitfarms Ltd. (NASDAQ:BITF) was downgraded to Market Perform from Outperform by Keefe Bruyette while raising the price target to $3 from $2.50. The firm told investors that it does not anticipate the materialization of a leasing agreement for the company until H2 2026. It also voiced concerns regarding the company’s rising leverage and increasing capex, and stated that it would adopt a more constructive outlook towards the shares with increased clarity on Bitfarms Ltd.’s (NASDAQ:BITF) liquidity and 2026 capex.
In a separate development, Bitfarms Ltd. (NASDAQ:BITF) announced on January 14 the appointment of Edie Hofmeister as Chair of the Board of the company, which supports its previously announced strategy of redomiciling to the United States.
Bitfarms Ltd. (NASDAQ:BITF) also provided an update on January 2, announcing that it entered into a definitive share purchase agreement for the sale of its 70 MW site in Paso Pe, Paraguay, to the Sympatheia Power Fund (SPF), a crypto infrastructure fund managed by Singapore-based Hawksburn Capital. Management expects the transaction to close within 60 days of the release, marking the company’s exit from Latin America.
Bitfarms Ltd. (NASDAQ:BITF) is a vertically integrated Bitcoin mining company based in Canada. The company operates server farms that comprise computers (Miners) specifically designed to validate transactions on the Bitcoin Blockchain.
4. EVgo Inc. (NASDAQ:EVGO)
Number of Hedge Fund Holders: 27
EVgo Inc. (NASDAQ:EVGO) is one of the best strong buy stocks to invest in under $5. On January 27, EVgo Inc. (NASDAQ:EVGO) announced new plans to release NACS connectors to meet consumer demand. The update came after the company’s successful 2025 pilot, during which it installed around 100 NACS connectors across 22 major metropolitan areas. EVgo Inc. (NASDAQ:EVGO) has plans to expedite this deployment to achieve the installation of over 500 NACS connectors by the end of this year. It added that the installation will take place at both existing and new locations, serving both Tesla drivers and the rising number of new vehicle models that are equipped with the NACS inlet.
EVgo Inc. (NASDAQ:EVGO) further stated that it expects over 80% of the new EVs sold in North America to be NACS compatible by 2030, with the company’s NACS deployment plans specially designed to expand its existing customer base and raise throughput while meeting anticipated consumer demand.
The company has plans to deploy additional NACS stalls in 2026 in key markets characterised by rising NACS vehicle penetration, including Houston, Austin, Orlando, Las Vegas, Dallas, Phoenix, Chicago, Detroit and San Francisco. EVgo Inc. (NASDAQ:EVGO) plans to offer NACS charging in over 25 states by the end of 2026.
EVgo Inc. (NASDAQ:EVGO) is involved in the provision of electric vehicle charging station services and offers home charging solutions, work charging solutions, the EVgo network, and freedom station plans to electric car owners.
3. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Number of Hedge Fund Holders: 32
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the best strong buy stocks to invest in under $5. Needham maintained a bullish outlook on Taysha Gene Therapies, Inc. (NASDAQ:TSHA) on January 6, reiterating a Buy rating on the stock with a $10 price target. The rating update came the same day Taysha Gene Therapies, Inc. (NASDAQ:TSHA) announced the dosing of the first patient in the REVEAL pivotal trial evaluating TSHA-102 in Q4 2025, with enrollment advancing across multiple sites. It reported progress across the TSHA-102 pivotal program, an intrathecally delivered AAV9 gene therapy with disease-modifying potential, in clinical evaluation for the treatment of Rett syndrome.
The company also stated that it reached written alignment with the FDA regarding the inclusion of ≥3 months of safety data from the ASPIRE trial evaluating TSHA-102 in the planned BLA submission to support a broad label in patients aged ≥2 years with Rett syndrome. Dosing in the REVEAL pivotal trial and ASPIRE trial is anticipated to be completed in Q2 2026, with the longer-term safety and efficacy data update from Part A of REVEAL Phase 1/2 trials expected in H1 2026.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV) based gene therapies to treat monogenic diseases of the central nervous system.
2. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 35
Denison Mines Corp. (NYSE:DNN) is one of the best strong buy stocks to invest in under $5. Denison Mines Corp. (NYSE:DNN) received a rating update from Raymond James on January 14, with the firm lifting the price target on the stock to C$5.05 from C$4.30 while maintaining an Outperform rating on the shares. The firm told investors that the price target change is a part of the firm’s mining update, and that it continues to favor copper in the base metals complex, expecting growing deficits in the medium to long term.
The rating update came after Denison Mines Corp. (NYSE:DNN) announced on January 8 the availability of grid power supply from Saskatchewan Power Corporation at the site of the future Phoenix in-situ recovery uranium mine after the recent installation of a new 138kV transmission line. Management stated that the availability of grid power at the Phoenix site marks a critical step in de-risking the execution of the Project, with the electrification of the site on the crucial path of activities planned for the first year of construction and supporting the establishment of the freeze wall planned to surround the initial mining area.
Denison Mines Corp. (NYSE:DNN) is involved in the exploration and development of uranium. The company holds interests in the Athabasca Basin, Wheeler River, Midwest Project, McClean Lake, and Waterbury Lake.
1. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 59
Grab Holdings Limited (NASDAQ:GRAB) is one of the best strong buy stocks to invest in under $5. BofA upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Neutral on January 19, keeping the price target unchanged at $6.30 and citing valuation for the upgrade after the stock’s recent underperformance.
The firm stated that the fundamentals of the company’s core mobility and deliveries business remain strong in a backdrop of low competition and stable-to-improving margins, and believes that Grab Holdings Limited’s (NASDAQ:GRAB) potential buyback limits the stock’s downside risk. BofA sees a favorable risk/reward after the selloff, with a “disconnect” between the company’s fundamentals and valuation.
In another development, HSBC also upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Hold with a price target of $6.20, citing valuation for the upgrade. The firm stated that the company’s valuation has “turned attractive” after the recent selloff, with Street’s expectations coming down. HSBC believes that Grab Holdings Limited’s (NASDAQ:GRAB) growth drivers are intact, and anticipates the company to “continue to strengthen its leadership position due to its ability to continuously roll out innovative and affordable products.”
Grab Holdings Limited (NASDAQ:GRAB) provides millions of consumers access to its merchant and driver partners for food delivery, ride or taxi hailing, package delivery, payment for online purchases, and services such as telemedicine, lending, and insurance through its application.
While we acknowledge the potential of GRAB 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 GRAB and that has 100x upside potential, check out our report about this cheapest AI stock.
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