In this article, we will look at the 13 Stocks Under $5 With High Upside Potential.
What Does H2 2025 Look Like?
On July 1, Ralph Schlosstein, Evercore chairman emeritus and BlackRock co-founder, appeared on CNBC’s ‘Closing Bell Overtime’ to discuss his outlook for markets heading into the second half of 2025. He said that one can never fully claim that the threat of tariffs is gone, as there is no absolutely certain plan about where President Trump and his team might take the tariff discussions and how the trading counterparties might react.
However, according to him, there is a strong desire between the US government and the other governments with which it is having discussions to find the least disruptive way out. While Schlosstein is cautiously optimistic, expecting no major disruptions caused by the tariffs over the second half of the year, he does not completely rule out the possibility of “mini tantrums.”
READ ALSO: 13 Best Pharma Stocks to Buy According to Wall Street Analysts and 13 Cheap Mid-Cap Stocks to Add to Your Portfolio.
He further said that while one cannot predict future economic statistics with certainty, inflation trends are certainly appearing positive. At the same time, the labor markets are also showing a tiny bit of looseness. Considering these prospects, Schlosstein stated that it is pretty clear that the next directional change in interest rates by the Fed would be downward. The only question, according to him, is how many cuts we get this year.
With these trends in view, let’s look at the 13 stocks under $5 with high upside potential to add to your portfolio.
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Our Methodology
We used Finviz to make a list of the best stocks under $5 and selected the top 13 with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on July 3.
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).
13 Stocks Under $5 With High Upside Potential
13. AbCellera Biologics Inc. (NASDAQ:ABCL)
Stock Price: $3.82
Analyst Upside: 70.16%
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the 13 Stocks Under $5 With High Upside Potential. On May 16, Truist Financial analyst Srikripa Devarakonda reiterated a Buy rating on AbCellera Biologics Inc. (NASDAQ:ABCL), lowering the price target to $10 from $28.
The firm released its updated outlook on the company after the latter released its fiscal Q1 2025 results. AbCellera Biologics Inc. (NASDAQ:ABCL) reported $4.2 million in total revenue for the quarter, generating a net loss of $45.6 million compared to net loss of $40.6 million last year. It also reached a cumulative total of 97 partner-initiated program starts with downstreams.
The analyst told investors in a research note that the firm is continuing to have a positive outlook for AbCellera Biologics Inc. (NASDAQ:ABCL), citing the continued execution of its wholly owned clinical pipeline.
Since the company is shifting the focus of its hybrid business model to a clinical-stage biotech, the firm updated its discount rate to account for the transition.
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.
12. Clover Health Investments, Corp. (NASDAQ:CLOV)
Stock Price: $2.58
Analyst Upside: 74.42%
Number of Hedge Fund Holders: 33
Clover Health Investments, Corp. (NASDAQ:CLOV) is one of the 13 Stocks Under $5 With High Upside Potential. In a report released on May 7, Matt Hewitt from Craig-Hallum reiterated a Buy rating on Clover Health Investments, Corp. (NASDAQ:CLOV) with a price target of $6.00.
The company reported notable fiscal Q1 2025 results that support this optimistic outlook, with Medicare Advantage membership for the quarter reaching 103,418, representing a 30% year-over-year increase.
Total revenue for fiscal Q1 2025 rose 33% year-over-year to $462 million, while adjusted EBITDA reached $26 million, reflecting a significant 279% year-over-year rise. Adjusted net income also grew 322% year-over-year to $25 million.
In addition, Clover Health Investments, Corp. (NASDAQ:CLOV) reported a GAAP net loss of $1 million, compared to $19 million a year ago, suggesting a considerable improvement in its operations.
Clover Health Investments, Corp. (NASDAQ: CLOV) is a physician enablement technology company that offers Medicare Advantage plans in the United States. It offers PPO and HMO Medicare Advantage plans in several US states.
