10 Most Undervalued Stocks to Buy for Under $5

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1. Performance Shipping Inc. (NASDAQ:PSHG)

Share Price (June 12): $1.74

Forward P/E (June 12): 1.24

Performance Shipping Inc. (NASDAQ:PSHG) is one of the most undervalued stocks to buy for under $5. The company provides shipping transportation services through tanker vessels. It employs its fleet on spot voyages, through on-time charters and pool arrangements.

The stock has had impressive gains of over 13% in the past month, driven mainly by Performance Shipping Inc. (NASDAQ:PSHG)’s recent financial performance and its engagement with investors on fleet expansion.

Performance Shipping Inc. (NASDAQ:PSHG) reported net income attributable to common stockholders of $29 million for Q1 FY25, up from $11 million in the prior year. Revenue stood at $21.3 million, down only slightly from $22.4 million a year ago, due to a decrease in the ownership days following the sale of the P. Yanbu vessel in March.

On June 4, Performance Shipping Inc. (NASDAQ:PSHG) announced it would arrange fixed income investors calls and that a 5-year USD-denominated senior unsecured bond issue may follow, with the proceeds being used to expand and renew the company’s fleet and also meet general corporate purposes.

While we acknowledge the potential of PSHG 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 PSHG and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.

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