10 Most Undervalued Stocks to Buy for Under $5

3. Agenus Inc. (NASDAQ:AGEN)

Share Price (June 12): $4.82

Forward P/E (June 12): 3.05

Agenus Inc. (NASDAQ:AGEN) is among the most undervalued stocks to buy for under $5. Despite a 39% surge over the past month, it is still a bargain stock, considering its low forward price-earnings ratio.

The company’s shares have soared on the back of notable recent developments. On June 3, Agenus Inc. (NASDAQ:AGEN) announced that it had signed agreements worth $141 million with Zydus Lifesciences Ltd. and its subsidiaries to accelerate the clinical development of botensilimab and balstilimab (BOT/BAL).

Under the agreement, Agenus Inc. (NASDAQ:AGEN) will receive $75 million upfront for the transfer of two manufacturing assets in California. The company will also get an additional $50 million in contingent payments triggered by BOT/BAL production orders. Moreover, it will grant Zydus a license to develop and commercialize BOT and BAL in India and Sri Lanka, with a 5% royalty on net sales to be paid to Agenus.

Following the development, analysts at H.C. Wainwright upgraded Agenus Inc. (NASDAQ:AGEN)’s rating from Neutral to Buy, whereas Baird lifted the stock’s price target to $6 from $4, while maintaining a Neutral rating for its shares.

Investor sentiment in Agenus Inc. (NASDAQ:AGEN) has also been strengthened by recent quarter results, in which the company managed to significantly lower its loss per share to $1.03 from $3.04 in the prior year.