US stocks declined before Monday’s trading after the US joined Israel’s war with Iran by striking three Iranian nuclear sites over the weekend. This move by President Donald Trump caused oil prices to rise and increased fears of a bigger conflict in the Middle East.
Futures for the Dow Jones Industrial Average dropped by 0.3%, or 109 points. S&P 500 futures fell by 0.3% and Nasdaq 100 futures declined by 0.4%.
On Saturday, the US attacked Iranian nuclear sites at Fordo, Isfahan, and Natanz. This came as a surprise for investors who were anticipating more diplomatic efforts after President Trump had stated on Friday that he would decide on attacking Iran “within the next two weeks.”
Oil prices were already rising due to the tensions in the Middle East. On Sunday night, US crude oil futures went up another 3.8% to reach nearly $77 a barrel.
Jay Woods, chief global strategist at Freedom Capital Markets, noted that markets can overreact with exaggerated moves during conflicts, and these can last two to three weeks. He highlighted that the S&P 500 fell 6% and oil prices spiked during the Ukraine conflict.
With this background in mind, let’s take a look at the 11 best US Stocks to invest in under $5.
Our Methodology
To compile our list of the 11 best US stocks to invest in under $5, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 30 American stocks with a share price of under $5 as of June 20, 2025. Next, we focused on the top 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 11 best US stocks to invest in under $5 were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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).
11 Best US Stocks to Invest in Under $5
11. EVgo, Inc. (NASDAQ:EVGO)
Share Price: $3.91
Number of Hedge Fund Holders: 26
EVgo, Inc. (NASDAQ:EVGO) is one of the 11 best US stocks to invest in under $5. On May 14, Stifel analysts maintained a “Buy” rating on EVgo, Inc. (NASDAQ:EVGO) with a price target of $8.00.
The analysts showed confidence in the company’s strong performance based on the first-quarter 2025 results.
Stifel analysts highlighted that EVgo, Inc. (NASDAQ:EVGO) has continued to exceed expectations and remains their top pick among US electric vehicle charging companies. The first quarter of 2025 showed promising signs, such as the likely retention of a Department of Energy loan and expected better profit margins in the company’s charging business.
The analysts also pointed out that tariffs are expected to have little impact on EVgo, Inc.’s (NASDAQ:EVGO) plans to install new chargers in 2025. The company’s management has also reiterated its guidance for 2025, which supports a stable outlook.
While there is some concern about slower EV sales, Stifel analysts believe that the growing number of EVs on the road will increase the use and throughput of EVgo, Inc.’s (NASDAQ:EVGO) charging network. The growth in EV usage is seen as a key factor driving the company’s future growth and performance.
EVgo, Inc. (NASDAQ:EVGO) is an electric vehicle fast charging provider in the United States with over 1,100 fast charging stations across more than 40 states.
10. JetBlue Airways Corporation (NASDAQ:JBLU)
Share Price: $4.01
Number of Hedge Fund Holders: 27
JetBlue Airways Corporation (NASDAQ:JBLU) is one of the 11 best US stocks to invest in under $5. On May 29, Morgan Stanley maintained its “Equal Weight” rating for JetBlue Airways Corporation (NASDAQ:JBLU) with a price target of $8.00.
This decision came after JetBlue Airways Corporation (NASDAQ:JBLU) announced a collaboration with United Airlines called Blue Sky, which aims to link their loyalty programs.
This announcement eased worries about a possible merger, which could have brought more risks. Morgan Stanley analysts believe that while both airlines will benefit, JetBlue Airways Corporation (NASDAQ:JBLU) stands to gain more from this collaboration.
The analysts also believe that the Blue Sky partnership won’t face the same regulatory problems that a previous alliance, the Northeast Alliance, encountered because JetBlue Airways Corporation (NASDAQ:JBLU) would have learned from that experience to avoid potential challenges.
JetBlue Airways Corporation (NASDAQ:JBLU) is an American major airline that carries customers to over 100 destinations across the US, Latin America, the Caribbean, Canada, and Europe.