This article looks at the 10 most undervalued stocks to buy for under $5.
Stock markets around the world tumbled on Friday following Israel’s strikes on military targets in Iran, sparking inflows in safer investments such as gold and the U.S. Dollar.
The latest escalation in the Middle East has added further uncertainty to the markets, following heightened pressure from the ongoing tariff wars.
The rush to safety from investors was reflected in the broad market index dropping 1.13%. European shares fell 0.9% on Friday, while major Asian markets in Hong Kong, Japan, and South Korea also dipped by over 1% each.
Jessica Amir, market strategist at Moomoo, shared the following remarks on the stock selloff:
“We’ve seen equities stalling for some time, and it just appears that this is the catalyst that will probably send equities down lower. Stocks are up 30% globally, and you’ve got the MSCI World Index at a record, so there’s room for fat to be taken off the table.”
James Rossiter, the head of global macro strategy at TD Securities, stated the following:
“This is a flight-to-safety event. But markets are struggling a bit and in the fixed income space you have an oil-price shock that is inflationary and so you should see markets expecting an even more hawkish Fed. On the other hand, you have the flight-to-safety, which should push bond yields lower. On the dollar side, it seems like a cleaner move. The U.S. was very quick to come and say ‘this has nothing to do with us’ and then we have Trump’s comments. He’s still clearly pushing for the Iranians to talk. There are these talks that have been scheduled for Sunday.”
With that said, let’s now head over and discuss the most undervalued stocks to buy.
Methodology
For this article, we identified stocks with a forward price-earnings ratio of less than 15 and a share price of under $5. From there, we selected the top 10 stocks in descending order of their price-earnings ratio. All figures are as of the close of business on Thursday, June 12, 2025.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Most Undervalued Stocks to Buy for Under $5:
10. Gerdau S.A. (NYSE:GGB)
Share Price (June 12): $3.01
Forward P/E (June 12): 8.15
Earlier this week, UBS upgraded Gerdau S.A. (NYSE:GGB)’s rating from Neutral to Buy and also lifted the stock’s price target to $3.8 per share from $2.9 previously. The new price target represents a 26% upside potential from its current trading levels.
The revision follows the Trump administration’s decision to increase import tariffs on steel to 50%. Analysts at UBS view this as a significant development for Gerdau S.A. (NYSE:GGB), considering the company’s substantial operations in the U.S., which provide it a hedge against the current protectionist policies.
UBS analysts highlighted the tight demand and supply dynamics for steel in the US, due to higher import tariffs, which are expected to increase end-product spreads and improve producer margins. This has prompted analysts to increase their 2026 EBITDA estimates for Gerdau S.A. (NYSE: GGB) by 32% from their previous levels.
They also anticipate a reduction in capex from 2026 onwards, resulting in a significant expansion in free cash flow. With a forward price-earnings ratio of 8.15, Gerdau S.A. (NYSE:GGB) is one of the most undervalued stocks to buy for under $5.
9. Banco Bradesco S.A. (NYSE:BBD)
Share Price (June 12): $3.00
Forward P/E (June 12): 7.37
Banco Bradesco S.A. (NYSE:BBD) is a São Paulo-based company that provides banking products and services to individuals and corporations in Brazil and internationally. It is one of the largest financial services groups in Latin America, having been in the market for over 80 years.
The stock has returned nearly 57% year-to-date on the back of strong earnings, resulting in positive investor sentiment. Last month, Banco Bradesco S.A. (NYSE:BBD) reported financial results for the first quarter of fiscal 2025, with recurring net income growing 39% year-over-year to BRL 5.9 billion, whereas the bank’s revenue surged 15% to BRL 32 billion.
Recent analyst ratings are also driving positive momentum for Banco Bradesco S.A. (NYSE:BBD). On May 28, Citigroup upgraded the stock’s rating to Buy from Neutral, citing an encouraging outlook for the company’s ROE in the short and mid-term. Analysts also expect an improvement in the bank’s risk-adjusted revenues.
This follows HSBC’s revision earlier in the year, when it signalled confidence in Banco Bradesco S.A. (NYSE:BBD) by upgrading the stock from Hold to Buy. The bank’s low forward P/E ratio and share price also make it an attractive entry point for investors. It is among the most undervalued stocks to buy for under $5.
8. B2Gold Corp. (NYSEAMERICAN:BTG)
Share Price (June 12): $3.71
Forward P/E (June 12): 6.91
B2Gold Corp. (NYSEAMERICAN:BTG)’s share price has soared nearly 56% year-to-date, with investors rallying behind the stock amid encouraging strategic initiatives, rising gold prices, and operational efficiencies.
In March, the company announced the completion of the Phase 2 expansion of the Fekola solar plant in Mali. This included the construction of 46,200 additional solar panels, raising the total count to nearly 143,000. The initiative is part of B2Gold Corp. (NYSEAMERICAN:BTG)’s strategy to implement new and existing renewable energy sources to power its operations.
Moreover, B2Gold Corp. (NYSEAMERICAN:BTG) is on track for the first gold pour from the Goose Project during the second quarter of 2025. The company estimates gold production in 2025 to be between 120,000 and 150,000 ounces from the project, while average gold production per annum from 2026 to 2031 will be approximately 300,000 ounces.
B2Gold Corp. (NYSEAMERICAN:BTG)’s Q1 2025 results reflected higher-than-expected gold production, and strong financial position and liquidity, bolstering investor sentiment. The stock’s low forward price-earnings ratio offers a potential for substantial gains over the long run. It is one of the most undervalued stocks to buy for under $5.
7. Clarivate Plc (NYSE:CLVT)
Share Price (June 12): $4.29
Forward P/E (June 12): 6.78
Clarivate Plc (NYSE:CLVT) is a leading global provider of transformative intelligence. It is among the most undervalued stocks to buy for under $5.
On June 9, the company announced a significant milestone in its decade-long partnership with the American Library Association (ALA) by becoming the first sponsor of the ALA Public Supporter Program to engage communities to support libraries and library professionals.
The program launched in February this year provides valuable information and resources to the public related to library advocacy, news, and the protection of libraries. Bar Veinstein, President Academia & Government at Clarivate Plc (NYSE:CLVT) had the following to say on the recent partnership:
“Libraries have always been a cornerstone of education, research, and access to information. We are proud to stand and partner with the American Library Association as leading library advocates in the U.S., providing them with the resources and support they need to continue their vital work.”
Earlier in the month, Clarivate Plc (NYSE:CLVT) announced a multi-year agreement with the Canadian Research Knowledge Network (CRKN) to advance the country’s research goals. The company has also renewed its partnership with CAPES to power research and innovation in Brazil.
6. TELUS International (Cda) Inc. (NYSE:TIXT)
Share Price (June 12): $3.67
Forward P/E (June 12): 6.76
TELUS International (Cda) Inc. (NYSE:TIXT) has received an unsolicited non-binding proposal from TELUS Corporation to buy out 100% of the outstanding multiple voting shares and subordinate voting shares not already owned by TELUS Corporation for $3.40 per share.
The proposal is subject to several conditions, including satisfactory due diligence, the negotiation of an acquisition agreement, and approval from key shareholders of TELUS International (Cda) Inc. (NYSE:TIXT). The completion of the transaction will also be subject to compliance with the security laws of Canada and the United States.
TELUS International (Cda) Inc. (NYSE:TIXT) crafts and delivers unique solutions, including AI and content moderation, for global and disruptive brands. The company’s shares surged by 26% on Thursday following the reports to cap off returns of nearly 27% for the week.
Given its low forward price-earnings ratio, it is one of the most undervalued stocks to buy for under $5.
5. B&G Foods, Inc. (NYSE:BGS)
Share Price (June 12): $4.53
Forward P/E (June 12): 6.29
B&G Foods, Inc. (NYSE:BGS)’s shares have declined 37% year-to-date, primarily due to weak financial results, lowered guidance, high debt, and a challenging environment in the packaged foods industry.
During the first quarter of fiscal 2025, the company reported revenue of $425.4 million, a 10.5% decrease from the prior year’s period. Adjusted diluted earnings per share stood at $0.04, falling shy of estimates by 10 cents.
Investor sentiment has also been dampened by B&G Foods, Inc. (NYSE:BGS) adjusting its net sales and EBITDA guidance down for the fiscal year, amid a soft start to 2025 and ongoing heightened tensions around tariffs.
2025 has been a challenging year for stocks in the food packaging industry, with higher prices forcing consumers to seek affordable options. There has also been a noticeable shift in consumer trends toward healthier foods and weight-loss drugs, resulting in waning demand for packaged foods.
B&G Foods, Inc. (NYSE:BGS) is aiming to stabilize costs and improve profitability through strategic divestitures. In May, the company sold its Don Pepino and Sclafani brands to Violet Foods. Despite challenges, the stock is trading at a bargain, given its low forward price-earnings ratio. It is among the 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.”
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.
2. Upland Software, Inc. (NASDAQ:UPLD)
Share Price (June 12): $1.79
Forward P/E (June 12): 2.22
Upland Software, Inc. (NASDAQ:UPLD) provides AI-powered knowledge and content management software. It is among the most undervalued stocks to buy for under $5.
The company has had a challenging year, with its shares dropping by over 60%. A major factor behind the plunge has been Upland Software, Inc. (NASDAQ:UPLD)’s contracting revenues compared to other players in the industry.
During the most recent quarter, Upland Software, Inc. (NASDAQ:UPLD) reported total revenues of $63.7 million, down 10% from the prior year’s period, 6% sequentially, and 19% lower than in the first quarter three years ago. The company’s GAAP net loss was $25.8 million. While the results came in better than expected, they largely failed to impress investors.
On the plus side, Upland Software, Inc. (NASDAQ:UPLD) is divesting nonstrategic lines to focus on its core business. While the move has lowered revenue guidance for 2025, it is not expected to impact adjusted EBITDA. Moreover, the stock has a one-year average price target of $4.25 per share, representing a 137% upside potential from its current trading level.
On May 13, Needham reiterated its Hold rating for Upland Software, Inc. (NASDAQ:UPLD), while recognizing the company’s efforts to refine its operations, especially with the recent sale of the mobile messaging product line. The analyst viewed UPLD’s strategy to streamline its portfolio positively, given the strength of certain products and the company’s historical difficulty with cross-selling loosely related products.
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.
