In this article, we talk about the 11 best stocks under $3 to buy right now.
In the stock market, stocks currently trading under $3 per share are typically small-cap stocks, defined as shares of publicly traded companies with a market capitalization between $300 million and $2 billion, as in the case of every company on this list. Interestingly, it’s these companies with sub-$3 stocks that will likely benefit from the expected broadening of the overall market this year, after being neglected over the past few years, according to Francis Gannon, the co-Chief Investment Officer of Royce Investment Partners.
In a February 2 interview on CNBC Television, Gannon shared that earnings growth estimates for some under-$3 stocks could reach as high as 66% this year, noting that this will likely be a reversal of the trend of EPS losses for small-cap companies from 2023 until the first half of 2025.
Gannon, whose firm Royce Investment Partners has specialized in small-cap investments since 1972, added that when under-$3 stocks start to lead the market in growth, they tend to maintain this advantage for a decade or more. He noted that sub-$3 stocks are an equity asset class that is cheap from a valuation perspective, has a great earnings story, and is most likely to benefit from AI development and an accelerating economy.
That being said, we’re here with a list of the 11 best stocks under $3 to buy right now.
Our Methodology
We compiled a list of stocks currently valued under $3 per share. To identify the best among these sub-$3 stocks, we evaluated their potential upside and included only those with at least 40% upside. From this pool, we selected the top 11 stocks with the highest upside and ranked them accordingly. We have also included the number of hedge funds holding the stock, based on Insider Monkey’s hedge fund database, as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All pricing data is as of market close on February 3, 2026
11. Petco Health and Wellness Company Inc. (NASDAQ:WOOF)
Potential Upside: 44.12%
Number of Hedge Fund Holders: 25
Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is one of the best stocks under $3 to invest in. On February 2, Petco Health and Wellness Company Inc. (NASDAQ:WOOF) announced that it had completed its long-term debt refinancing. As part of its strategy to become more financially flexible and reduce leverage, Petco Health and Wellness Company Inc. (NASDAQ:WOOF) undertook measures to refinance $1.5 billion of its current term loan, as it seeks to transition its business model while facing challenges in the competitive pet retail sector. This refinancing included a $50 million voluntary prepayment in December 2025 and the recent issuance of $600 million in senior secured notes at an annual interest rate of 8.25%.
The company also announced that Glenn Murphy has changed his role from Executive Chairman, a position he has held since May 2024, “a period of great transformation for the company”, according to Petco CEO Joel Anderson. Murphy’s new role is Chairman of the Board of Directors, effective February 1.
Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is a retailer of pet-oriented products and services, operating more than 1,500 stores across the U.S., Mexico, and Puerto Rico. The company provides services such as veterinary care, grooming, training, tele-health, and pet health insurance services, while its products include pet consumables and supplies.
10. iQIYI Inc. (NASDAQ:IQ)
Potential Upside: 46.23%
Number of Hedge Fund Holders: 18
Streaming platform iQIYI Inc. (NASDAQ:IQ) is one of the best stocks under $3 to invest in. On January 20, iQIYI Inc. (NASDAQ:IQ) announced the resignation of its Chief Financial Officer, Jun Wang, for personal reasons, and that Wang would remain an advisor until May 31. The company appointed Ying Zeng, the company’s Senior Vice President of Finance, as Interim Chief Financial Officer. Zeng joined the company in 2017 and has been Senior Vice President of Finance since 2022.
In its statement on the management change, iQIYI Inc. (NASDAQ:IQ) said that it has elevated a long-serving internal finance executive with IPO and financing experience to manage the company’s financial strategy as it launches a search for a permanent CFO. The company is undertaking this change amid a recent week-long slump in stock price from $2.13 in January 28 to $1.96 as of February 3, following a more bullish trend the preceding week that almost mirrors the decline.
China-based iQIYI Inc. (NASDAQ:IQ) is an online entertainment company that offers membership services on its video streaming platform. The company’s scope of services includes online advertising services, content distribution, online games, live broadcasting, IP licensing, talent agency, and online literature.
9. Ur-Energy Inc. (NYSE:URG)
Potential Upside: 47.37%
Number of Hedge Fund Holders: 19
Ur-Energy Inc. (NYSE:URG) is one of the best stocks under $3 to invest in. On January 28, Ur-Energy Inc. (NYSE:URG) provided an update on its Lost Soldier and North Hadsell uranium mining exploration projects, which are both in Wyoming’s Great Divide Basin. The company said that its recent drilling on the two sites, which includes the gathering of hydrogeologic data at Lost Soldier and the identification of new uranium roll-front targets at North Hadsell, has delivered encouraging results for the upside potential of the assets.
“The early success at North Hadsell, combined with our decision to advance technical studies and hydrogeologic work at Lost Soldier, underscores the momentum we are building across our Wyoming growth portfolio,” Ur-Energy Inc. (NYSE:URG) CEO and President Matthew Gili said in a statement. Other projects of uranium mining company Ur-Energy Inc. (NYSE:URG) include Lost Creek, Shirley Basin, Lucky Mc Mine Site, and Excel Gold.
Ur-Energy Inc. (NYSE: URG) is an exploration-stage uranium mining company. It engages in uranium mining, recovery, and processing, including the acquisition, exploration, development, and operation of uranium mineral properties.
8. ECARX Holdings Inc. (NASDAQ:ECX)
Potential Upside: 69.31%
Number of Hedge Fund Holders: 21
ECARX Holdings Inc. (NASDAQ:ECX) is one of the best stocks under $3 to invest in. On January 12, Chinese car maker Geely Investment Holding Ltd. agreed to invest $45.6 million into ECARX Holdings Inc. (NASDAQ:ECX), through the purchase of 27,297,002 newly issued Class A ordinary shares of ECARX at $1.67 per share. The transaction is expected to close soon, subject to customary conditions, and the purchased shares will be subject to a six-month lock-up period.
“Following the two project wins from Volkswagen Group last year and our deepened strategic partnership with Lotus Tech, this investment will support the build out of our R&D hub in Germany and infrastructure across key growth markets in South America and Southeast Asia, providing us with the R&D, delivery, and supply chain capabilities to fuel our global expansion,” ECARX Holdings Inc. (NASDAQ:ECX) Chief Executive Officer and Chairman Ziyu Shen said in a statement about the transaction.
ECARX Holdings Inc. (NASDAQ:ECX) is an automotive computing platform builder, focused on building technology for smart mobility in China and internationally. Its core products include infotainment head units, autonomous driving control units, digital cockpits, vehicle chip-set solutions, core operating systems, and an integrated software stack.
7. Bitfarms Ltd. (NASDAQ:BITF)
Potential Upside: 76.99%
Number of Hedge Fund Holders: 25
Bitfarms Ltd. (NASDAQ:BITF) is one of the best stocks under $3 to invest in. On January 26, Keefe, Bruyette analysts downgraded Bitfarms Ltd. (NASDAQ:BITF) to Market Perform from Outperform but raised the price target to $3 from $2.50. In its report on the stock, Keefe Bruyette said the company may find it difficult to secure a leasing agreement and expressed concern that Bitfarms’s leverage and capital expenditures are rising.
Meanwhile, on January 20, KBW analyst Catherine Mealor reiterated the firm’s Hold rating on Bitfarms Ltd. (NASDAQ:BITF). In her report, Mealor opined that there is not enough differentiated upside in Bitfarms’ risk‑reward profile, which blocked it from receiving a Buy recommendation despite some advantages in its business model and market position. The analyst also argued that the stock’s upside is already reflected in the current valuation and that operational and market headwinds ahead could hinder the company’s trajectory, although they are not severe enough to warrant a lower rating.
Bitfarms Ltd. (NASDAQ:BITF) is a cryptocurrency mining company operating server farms comprised of computers designed for the purpose of validating transactions on the Bitcoin blockchain.
6. Opko Health Inc. (NASDAQ:OPK)
Potential Upside: 78.13%
Number of Hedge Fund Holders: 15
Opko Health Inc. (NASDAQ:OPK) is one of the best stocks under $3 to invest in. On February 4, Opko Health Inc. (NASDAQ:OPK) announced it expanded its partnership with Entera Bio Ltd., a company developing oral peptide and protein replacement therapies, to advance the first oral long-acting PTH analog (LA-PTH) treatment for patients with hypoparathyroidism, in the form of a once-daily tablet. The two companies have also jointly decided to accelerate development on this medication and expect to file an Investigational New Drug (IND) application with the U.S. Food and Drug Administration (FDA) in late 2026.
Under the expanded partnership, Opko Health Inc. (NASDAQ:OPK) and Entera will each hold a 50% pro rata ownership interest in the LA-PTH hypoparathyroidism program. Each company will also be responsible for 50% of the program’s development costs. The companies maintain their previously announced ownership structure and cost-sharing arrangement for the oral OXM program for metabolic and fibrotic disorders, currently set at 60% for Opko Health Inc. (NASDAQ:OPK) and 40% for Entera.
Opko Health Inc. (NASDAQ:OPK) is a biopharmaceutical and diagnostics company that provides healthcare services. Its operations are divided into the Diagnostics and Pharmaceuticals segments.
5. GoodRx Holdings Inc. (NASDAQ:GDRX)
Potential Upside: 109.65%
Number of Hedge Fund Holders: 21
GoodRx Holdings Inc. (NASDAQ:GDRX) is one of the best stocks under $3 to invest in, although one firm had recently become neutral on the stock. On January 22, analysts at Jefferies lowered their rating on GoodRx Holdings Inc. (NASDAQ:GDRX) to Hold from Buy and cut the price target to $2.75 from $5.25. According to Jefferies, the Rite Aid bankruptcy and the subsequent mass closures of 800 pharmacy locations from June to July 2025 have adversely affected GoodRx’s drug prescription business to the tune of a 14% year-over-year decline in monthly active consumers and a 9% drop in prescription revenues.
Jefferies expects GoodRx Holdings Inc. (NASDAQ:GDRX)’s prescription revenues to remain flat year-over-year as it continues to face challenges in its prescription discount segment, which represents about 69% of the company’s expected revenue. The analysts also project that overall revenue and EBITDA growth will remain muted, making GoodRx’s valuation multiple stagnant at least in the short run.
GoodRx Holdings Inc. (NASDAQ:GDRX) is a digital healthcare platform that offers consumers free access to transparent and lower prices for branded and generic medications.
4. Sabre Corp (NASDAQ:SABR)
Potential Upside: 212.03%
Number of Hedge Fund Holders: 22
Sabre Corp (NASDAQ:SABR) is one of the best stocks under $3 to invest in. On January 14, Sabre Corp (NASDAQ:SABR) announced that it secured a strategic partnership with Biztrip AI, under which Sabre also made a minority investment in Biztrip AI for an undisclosed amount. Following the announcement, travel technology company Sabre and AI-oriented company Biztrip AI will work together to develop AI-powered corporate travel assistants using natural language processing for booking workflows and managing itineraries.
Through this partnership, Sabre’s agentic APIs and Model Context Protocol will be combined with Biztrip AI’s Travel Large Language Model, with the two companies collaborating on developing and marketing services for travel management companies, airlines, hotels, and corporate clients. Under the partnership, Biztrip AI will utilize Sabre’s SabreMosaic Travel Marketplace for inventory access across air, lodging, and ground transportation, along with Sabre’s cloud platform and global supplier connectivity that serves 50,000 travel management companies.
Sabre Corp. is a software and technology company focused on the global travel and tourism industry. It operates through two segments: Travel Solutions, which operates a business-to-business travel marketplace, and Hospitality Solutions, which provides software-as-a-service solutions to hoteliers.
3. Bit Digital Inc. (NASDAQ:BTBT)
Potential Upside: 235.05%
Number of Hedge Fund Holders: 20
Bit Digital Inc (NASDAQ:BTBT) is one of the best stocks under $3 to invest in. On January 29, Bit Digital Inc. (NASDAQ:BTBT) announced it will discontinue its Bitcoin mining operations and focus instead on artificial intelligence (AI) computing and Ethereum infrastructure. The company now believes that Bitcoin mining “became a less efficient use of capital relative to opportunities that allow for active participation, yield generation, and operational leverage,” as opined by Bit Digital Inc. (NASDAQ:BTBT) CEO Sam Tabar in a shareholder letter.
This is an uncommon development, as publicly traded companies that deal with cryptocurrencies typically tend to focus solely on Bitcoin, and this decision by Bit Digital Inc. (NASDAQ:BTBT) makes it one of the few companies in the cryptocurrency space that is moving away from Bitcoin. In connection with the new main points of focus for Bit Digital Inc (NASDAQ:BTBT), the company also revealed that it holds over 150,000 ETH, which is mostly being used for crypto staking activities to generate additional cryptocurrencies. Meanwhile, Bit Digital affirmed its commitment to AI company WhiteFiber, where it holds a majority ownership stake, stating it will not sell any of its WhiteFiber shares this year.
Bit Digital Inc (NASDAQ:BTBT) offers cloud services for machine learning and artificial intelligence and engages in cryptocurrency mining and staking.
2. Gossamer Bio Inc. (NASDAQ:GOSS)
Potential Upside: 256.05%
Number of Hedge Fund Holders: 36
Gossamer Bio Inc. (NASDAQ:GOSS) is one of the best stocks under $3 to invest in. On February 4, H.C. Wainwright analyst Patrick Trucchio reiterated a Buy rating on Gossamer Bio and set a $10 price target on the stock. This ratings confirmation followed Barclays’ coverage initiation on Gossamer Bio Inc. (NASDAQ:GOSS) with an Overweight rating and $9 price target, as part of its coverage assumption of 12 biotech stocks. Barclays claimed in its report that biotech stocks like Gossamer Bio remain undervalued and that companies in the industry could benefit greatly from continued mergers and acquisitions, and healthy fundamentals.
Cantor Fitzgerald also has an Overweight rating on Gossamer Bio Inc. (NASDAQ:GOSS), which was reiterated in its January 22 report. The analyst noted that results for its ongoing clinical trial of seralutinib in pulmonary arterial hypertension will likely come out in mid to late February, with additional imaging data scheduled to be presented in the second quarter of 2026.
Gossamer Bio Inc. (NASDAQ:GOSS) is a pharmaceutical company specializing in the discovery, development, and marketing of treatments in the medical fields of immunology, inflammation, and oncology.
1. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Potential Upside: 300.38%
Number of Hedge Fund Holders: 27
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is one of the best stocks under $3 to invest in. On January 9, Iovance Biotherapeutics Inc. (NASDAQ:IOVA) announced that it expects to achieve its previously disclosed full-year 2025 revenue guidance range of $250 to $300 million in the first full calendar year of Amtagvi sales. The company also expects Amtagvi, Iovance’s treatment regimen for advanced melanoma, will have up to $1 billion in peak sales potential.
Meanwhile, Iovance Biotherapeutics Inc. (NASDAQ:IOVA) also provided an update on Lifileucel, an in-development treatment for lung cancer. The company said the commercial opportunity for Lifileucel could be up to 7x larger than the current opportunity in the melanoma treatment market. Lifileucel is expected to complete the enrollment and data updates process for the anti-lung cancer drug this year, with the drug anticipated to launch in the second half of 2027. The company also said it still has $307 million in cash & cash equivalents, which will fund its operations through the second quarter of 2027.
Biopharmaceutical company Iovance Biotherapeutics Inc. (NASDAQ:IOVA) develops and commercializes cell therapies as novel cancer immunotherapy products.
While we acknowledge the potential of IOVA as an investment, 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 IOVA and that has 100x upside potential, check out our report about this cheapest AI stock.
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