In this article, we will look at the 10 Stocks Under $5 with Huge Upside Potential.
On April 17, Kevin Simpson, Capital Wealth Planning founder and CIO, appeared on CNBC’s ‘Closing Bell’ to talk about his view on equities, what to expect next week, and more.
He cited the breadth of the market, stating that it’s not just the Mag 7 or tech, but also the S&P, the Dow, the Nasdaq, and even the Russell that is moving higher. He added that it was almost a sigh of relief when we got the all-clear signal with respect to the straits, but whether it is an all-clear for real or not requires a little bit more time to see if that is actually the case. However, there is enough of a foundation for this market to move higher, according to him.
READ ALSO: 8 Most Undervalued Biotech Stocks to Buy Right Now AND 8 Best Low Priced Biotech Stocks to Invest In.
Simpson further stated that he is looking at this from a standpoint of “boy, it has come really far, really fast, and where do we go from here”. Talking about what to expect next week, he stated that oil is the real linchpin, and he does not believe anything other than oil can derail this rally. According to him, oil prices could still drive equities lower.
With these broader market trends in view, let’s look at the best stocks under $5 with huge upside potential.
Our Methodology
We used the Finviz stock screener to make a list of the best stocks under $5 with huge upside potential and picked the top 10 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Note: All data was recorded on April 17.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Stocks Under $5 with Huge Upside Potential
10. Keel Infrastructure Corp. (NASDAQ:KEEL)
Keel Infrastructure Corp. (NASDAQ:KEEL) is one of the best stocks under $5 with huge upside potential. Cantor Fitzgerald cut the price target on Keel Infrastructure Corp. (NASDAQ:KEEL) to $3 from $5 on April 9 and reaffirmed an Overweight rating on the shares. The firm told investors that it believes the world is heading toward the proliferation of AI across nearly every sector, business, and economy, and in this context, it sees AI infrastructure as “an attractive place to invest”. This holds especially true given that investors are somewhat agnostic to which AI app or AI model emerges victorious. Cantor also stated that it envisions a persistent supply/demand imbalance for the next five-plus years that caters to pricing remaining strong.
In a separate development, Keel Infrastructure Corp. (NASDAQ:KEEL) and Bitfarms Ltd. announced the completion of Bitfarms’ previously announced redomiciliation from Canada to the United States on April 1, following which Keel Infrastructure, a corporation formed under the laws of the State of Delaware, is now the ultimate parent corporation of Bitfarms. Management stated that Keel Infrastructure Corp. (NASDAQ:KEEL) will continue carrying on the business currently conducted by Bitfarms and its subsidiaries, and its sole principal executive office will be in New York City.
Keel Infrastructure Corp. (NASDAQ:KEEL) is involved in building AI-focused data centers and energy assets with a focus on infrastructure and energy required to support high-performance computing and artificial intelligence workloads.
9. Alvotech (NASDAQ:ALVO)
Alvotech (NASDAQ:ALVO) is one of the best stocks under $5 with huge upside potential. Alvotech (NASDAQ:ALVO) has received several rating updates from analysts since the release of its fiscal Q4 and full-year 2025 results. On March 23, Barclays cut the price target on the stock to $4 from $5 and maintained an Underweight rating on the shares. The firm told investors in a research note that it anticipates the shares to “remain in a holding pattern” pending U.S. approvals in fiscal Q4. It also stated that the company’s financial flexibility “bears watching”, given its high leverage.
The same day, UBS also cut the price target on Alvotech (NASDAQ:ALVO) to $6 from $10 while reiterating a Buy rating on the shares. It told investors in a research note that it is confident in the remediation plan outlined by the company’s management, and anticipates these approvals to occur by year-end 2026. The firm also stated that it believes the stock has largely reset after this sequence of negative developments, with expectations now meaningfully lower.
Alvotech (NASDAQ:ALVO) is a biotechnology company that develops and manufactures biosimilar medicines. The firm’s focus is on the development of its product candidates, with its operations divided into the following geographical segments: Europe, North America, Asia, and Other.
8. Sana Biotechnology, Inc. (NASDAQ:SANA)
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the best stocks under $5 with huge upside potential. Wedbush lifted the price target on Sana Biotechnology, Inc. (NASDAQ:SANA) to $7 from $6 on April 14, reaffirming an Outperform rating on the shares. The firm stated that the company announced a collaboration with the Mayo Clinic to develop protocols and processes for type 1 diabetes candidate SC451, with a concurrent investment of up to $50 million. Wedbush added that The Mayo Clinic will initially purchase 7.5 million shares for gross proceeds of $25 million, and will hold an option to purchase an additional 7.5 million shares before August 31, 2026. Sana Biotechnology, Inc. (NASDAQ:SANA) expects the cash runway to extend into 2027 based on the initial $25 million investment, according to the firm.
Sana Biotechnology, Inc. (NASDAQ:SANA) announced its collaboration with Mayo Clinic across multiple areas on April 13, aimed at accelerating the development of and access to potentially curative therapies for patients with type 1 diabetes.
Sana Biotechnology (NASDAQ:SANA) is a biotechnology company that specializes in using engineered cells as medicines. It develops cell engineering programs that transform treatment across several therapeutic areas with treatment gaps, including diabetes, oncology, the central nervous system, and B-cell-mediated autoimmune disorders.
7. AbCellera Biologics Inc. (NASDAQ:ABCL)
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the best stocks under $5 with huge upside potential. On April 9, JonesResearch initiated coverage of AbCellera Biologics Inc. (NASDAQ:ABCL) with a Buy rating and set a $11 price target. The firm stated that the company’s validated antibody discovery platform has advanced 19 molecules into the clinic across internal and partnered programs spanning several indications, adding that AbCellera Biologics Inc.’s (NASDAQ:ABCL) capabilities are “best illustrated” by its collaboration with Eli Lilly.
In its financial results for the full year 2025, AbCellera Biologics Inc. (NASDAQ:ABCL) reported that it successfully delivered on all its corporate priorities while transitioning to a clinical-stage biotech company and ending the year with around $700 million in available liquidity to execute on its strategy. For the full year, AbCellera Biologics Inc. (NASDAQ:ABCL) earned $75.1 million in total revenue and generated a net loss of $146.4 million, compared to a net loss of $162.9 million in the prior year period.
AbCellera Biologics (NASDAQ:ABCL) solves antibody discovery problems by integrating data science, technology, infrastructure, and interdisciplinary teams. It develops and discovers antibody medicines for indications across therapeutic areas, including metabolic and endocrine conditions, cancer, and autoimmune disorders. It boasts technology platforms that unlock drug classes, modalities, and targets, including T-cell engagers, peptide-MHCs, and transmembrane proteins.
6. AtaiBeckley Inc. (NASDAQ:ATAI)
AtaiBeckley Inc. (NASDAQ:ATAI) is one of the best stocks under $5 with huge upside potential. Guggenheim lifted the price target on AtaiBeckley Inc. (NASDAQ:ATAI) to $16 from $11 on April 17, maintaining a Buy rating on the shares. The firm told investors that its recent meetings with management reinforced its “conviction” in the BPL-003 program heading into Phase 3 initiation this quarter.
In another development, AtaiBeckley Inc. (NASDAQ:ATAI) announced on April 8 peer-reviewed Phase 2a results in CNS Drugs, exhibiting that a single intranasal dose of BPL-003 attained rapid and sustained reductions in MADRS scores from baseline in participants with treatment-resistant depression who remained on stable SSRI therapy throughout the study. BPL-003 holds FDA Breakthrough Therapy Designation.
Management reported that A 66.7% antidepressant response rate was observed at Day 2 in both the 10 mg (n=6) and 12 mg (n=6) cohorts, with 83% of participants in the 10 mg cohort and 66.7% of participants in the 12 mg cohort maintaining a response at Week 12.
Headquartered in Germany, AtaiBeckley Inc. (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
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