10 Best Tech Stocks To Buy Under $5

7. PowerFleet, Inc. (NASDAQ:AIOT)

Share Price: $4.46

Number of Hedge Fund Holders: 24

PowerFleet, Inc. (NASDAQ:AIOT) is one of the 10 best tech stocks to buy under $5. On May 27, Lake Street Capital Markets lowered the price target for PowerFleet, Inc. (NASDAQ:AIOT) from $11 to $8 but kept a “Buy” rating.

This adjustment came after observations of general market softness, which is affecting PowerFleet, Inc. (NASDAQ:AIOT). However, there have not been any order cancellations reported.

Jaeson Schmidt of Lake Street Capital Markets pointed out that the company is facing delays and longer sales cycles. These challenges are expected to be short-term. The analyst also said that tariffs might have a slight impact on PowerFleet, Inc.’s (NASDAQ:AIOT) gross margins.

Despite these challenges, Schmidt is still positive about the company’s future. He believes PowerFleet, Inc. (NASDAQ:AIOT) can achieve significant cost synergies. In the fiscal year 2025, the company realized $16 million in annual cost synergies. $11 million of these benefits were recognized within the fiscal year 2025. Lake Street Capital Markets expects that these cost-saving measures will continue helping the company.

The firm has also adjusted its forecast for fiscal year 2026, expecting a better performance in the second half than previously forecasted.

PowerFleet, Inc. (NASDAQ:AIOT) offers AI-powered data solutions to improve mobile asset performance, safety, and sustainability. The company’s cloud-based platform, Powerfleet Unity, uses AI, machine learning, and IoT connectivity to deliver important insights across industrial, logistics, and transportation sectors.