In this article, we will be looking at the 10 Best US Stocks Under $5 to Buy.
On May 8, CNBC reported that Michael Burry has warned that the strong excitement around AI in the stock market is starting to look similar to the final stages of the dot-com bubble.
Burry, who is best known for predicting the US housing crash, said that almost all conversations are focused on AI. After listening to financial television and radio coverage during a long drive, he noted that “nobody is talking about anything else all day.”
The investor also said that stock prices are no longer moving based on economic data such as jobs reports or consumer sentiment. The S&P 500 reached another record high on Friday as traders focused on the April jobs report, which came in slightly better than expected. At the same time, traders did not focus on a record low reading in consumer sentiment.
Burry pointed out that the “stocks are not up or down because of jobs or consumer sentiment.” He added that the stocks are “going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand. … Feeling like the last months of the 1999-2000 bubble.”
With this background in mind, let’s take a look at the 10 best US stocks under $5 to buy.
Our Methodology
To compile our list of the 10 best US stocks under $5 to buy, we used the Finviz stock screener to find American stocks with a share price of under $5 as of May 7, 2026. We sorted our results based on market capitalization and picked the 30 best American stocks. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds. Finally, the 10 best US stocks under $5 to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
Why do we care about what hedge funds do? 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 US Stocks Under $5 to Buy
10. Plug Power Inc. (NASDAQ:PLUG)
Share Price: $3.31
Number of Hedge Fund Holders: 29
Plug Power Inc. (NASDAQ:PLUG) is one of the best US stocks under $5 to buy. On April 28, Clear Street increased its price target on Plug Power Inc. (NASDAQ:PLUG) from $3 to $3.50 and kept its Buy rating on the stock.
The research firm updated its estimates for the company. It lowered its revenue expectations for the first half of the year but raised its forecasts for the second half. For the March quarter, Clear Street expects Plug Power Inc. (NASDAQ:PLUG) to report sales growth of 8%, reaching $144 million.
For the full year 2026, Clear Street projects revenue to grow by 15% to $817 million. However, this is 2% lower than its previous forecast. The firm now also expects Plug Power Inc.’s (NASDAQ:PLUG) adjusted EBITDA losses in 2026 and 2027 to be smaller than previously expected, supported by an improved gross margin outlook.
According to Clear Street, the company’s cost-saving program is expected to help improve its financial performance.
Plug Power Inc. (NASDAQ:PLUG) is a global company specializing in hydrogen fuel-supply solutions. It provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to various industries, including material handling, industrial applications, and energy producers.
9. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Share Price: $4.65
Number of Hedge Fund Holders: 32
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the best US stocks under $5 to buy. On May 6, Canaccord reiterated its Buy rating on Taysha Gene Therapies, Inc. (NASDAQ:TSHA) with a price target of $17 on the stock.
This update comes after the company reported results for the first quarter of 2026. Taysha Gene Therapies, Inc. (NASDAQ:TSHA) said it recently held an initial breakthrough therapy Type B multidisciplinary meeting with the US Food and Drug Administration (FDA).
Following the meeting, the company confirmed that it remains aligned with the planned path toward a Biologics License Application (BLA) submission for TSHA-102. This includes the pivotal trial design, study endpoints, and possible BLA submission scenarios. One of those scenarios could allow the company to seek approval based on the six-month interim analysis from the REVEAL pivotal trial.
Additionally, Taysha Gene Therapies, Inc. (NASDAQ:TSHA) reported that enrollment is continuing in the ASPIRE trial across multiple clinical trial sites. The ASPIRE safety-focused trial is intended to support a future BLA submission that could allow broader labeling of TSHA-102 for patients aged two years and older with Rett syndrome.
The company expects dosing in both the REVEAL pivotal trial and the ASPIRE trial to be completed in the second quarter of 2026.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company. It focuses on developing adeno-associated virus (AAV)-based gene therapies to treat serious monogenic diseases of the central nervous system.
8. Taboola.com Ltd. (NASDAQ:TBLA)
Share Price: $4.75
Number of Hedge Fund Holders: 33
Taboola.com Ltd. (NASDAQ:TBLA) is one of the best US stocks under $5 to buy. On May 7, Benchmark increased its price target on Taboola.com Ltd. (NASDAQ:TBLA) from $4.50 to $6.50 and kept its Buy rating on the stock.
The research firm pointed to the company’s results for the first quarter of 2026. Taboola.com Ltd. (NASDAQ:TBLA) started the year on a strong note, beating the high end of its guidance across all metrics. The company also increased its full-year outlook, supported by accelerated growth.
For the first quarter, Taboola.com Ltd. (NASDAQ:TBLA) reported revenues of $466.4 million, an increase of 9.1% year-over-year. Gross profit increased 8.6% to $129.6 million, while ex-TAC gross profit climbed 10.8% to $168.1 million. The company reported net income of $59.1 million, compared with a net loss of $8.8 million.
Benchmark analyst Mark Zgutowicz said the performance helped answer concerns about whether Realize could help speed up the business again. The research firm also noted that Realize is opening to Claude Skills.
Taboola.com Ltd. (NASDAQ:TBLA) is a performance advertising technology company that powers recommendations for the open web to help people explore things they might like. The company helps digital properties, including websites, devices, and mobile apps, to drive monetization and user engagement.
7. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Share Price: $4.09
Number of Hedge Fund Holders: 33
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the best US stocks under $5 to buy. On May 7, Chardan reduced its price target on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) from $16 to $14 while maintaining a Buy rating on the stock.
This update comes after the company’s first-quarter 2026 results. Chardan’s analyst told investors in a research note that the firm is adjusting its model to reflect the company’s updated launch guidance for Amtagvi.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) reported total product revenue of approximately $71 million in the first quarter of 2026, marking an increase of about 45% compared with the same quarter last year. This growth was supported by significant performance improvements. US Amtagvi revenue was about $60 million, while global Proleukin revenue came in at around $11 million.
The company also shared strong revenue expectations for 2026. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) expects total product revenue for the second quarter of 2026 to range between $86 million and $88 million. For the full year 2026, the company projects revenue between $350 million and $370 million.
Additionally, the company expects US Amtagvi revenue for the second quarter of 2026 to be between $79 million and $81 million. This would represent an increase of about 23% compared with the fourth quarter of 2025.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a commercial biotechnology company focused on developing tumor-infiltrating lymphocyte (TIL) therapies for patients with cancer.
6. Geron Corporation (NASDAQ:GERN)
Share Price: $1.58
Number of Hedge Fund Holders: 34
Geron Corporation (NASDAQ:GERN) is one of the best US stocks under $5 to buy. On May 7, Wedbush reiterated its Outperform rating on Geron Corporation (NASDAQ:GERN) with a price target of $5 on the stock. This update comes after the company reported results for the first quarter of 2026 and recent business developments.
During the first quarter of 2026, Geron Corporation (NASDAQ:GERN) reported $51.8 million in net product revenue from RYTELO (imetelstat), an 8% increase compared to the fourth quarter of 2025. The company also reiterated its 2026 guidance, expecting RYTELO net product revenue to range between $220 million and $240 million. Total operating expenses for the year are expected to be between $230 million and $240 million.
Geron Corporation (NASDAQ:GERN) said it continued to move forward with investigator-sponsored and real-world evidence trials focusing on RYTELO’s mechanistic studies, combinations and sequencing, earlier-line use and new settings. The company expects initial data from these trials in the second half of 2026.
The company also continued investing in its Chemistry, Manufacturing and Controls operations to strengthen the RYTELO supply chain. Geron Corporation (NASDAQ:GERN) also said it validated a second supplier for the product.
Geron Corporation (NASDAQ:GERN) is a commercial-stage biopharmaceutical company focused on developing therapies for patients with blood cancers.
While we acknowledge the potential of GERN 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 GERN and that has 100x upside potential, check out our report about the cheapest AI stock.
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