10 Most Undervalued Stocks to Buy for Under $5

4. Synergy CHC Corp. (NASDAQ:SNYR)

Share Price (June 12): $2.29

Forward P/E (June 12): 4.37

Synergy CHC Corp. (NASDAQ:SNYR)’s valuation has been a subject of discussion among analysts and investors. Given its forward price-earnings ratio of 4.37, it is among the most undervalued stocks to buy for under $5.

Recent insider buying, led by CEO Jack Ross, has also added to the speculation. According to reports, Ross made a series of purchases between June 2 and June 10, acquiring a total of 16,100 shares, worth $29,837.

However, the stock has plunged by over 50% year-to-date, due to a combination of factors, including its high debt and revenue challenges. During the Q1 FY25 earnings call on May 15, Synergy CHC Corp. (NASDAQ:SNYR) said it entered and continued debt refinancing negotiations during and after the quarter, with the aim to extend the maturity to 2029.

On June 4, Synergy CHC Corp. (NASDAQ:SNYR) announced a $20 million term loan credit agreement, the proceeds of which will be used to provide the company with growth capital and pay down debt. CEO Jack Ross had the following to say on the recent agreement:

“We are very pleased to have completed our debt refinancing, which supports our growth strategy and significantly strengthens our capital structure. The long-term nature of the new facility enhances our balance sheet and provides the flexibility needed for our next phase of growth. Additionally, the delayed draw proceeds allow us to fully repay debt related to settlement agreements, positioning us for greater financial stability as we execute our strategic goals.”