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.
11. Agilon Health, Inc. (NYSE:AGL)
Stock Price: $2.43
Analyst Upside: 74.90%
Number of Hedge Fund Holders: 18
Agilon Health, Inc. (NYSE:AGL) is one of the 13 Stocks Under $5 With High Upside Potential. In a report released on June 17, Lance Wilkes from Bernstein maintained a Buy rating on Agilon Health, Inc. (NYSE:AGL) with a price target of $7.50.
The company reported $1.53 billion in total revenues in fiscal Q1 2025, with Medicare Advantage membership of 491,000, and 605,000 total members on the Agilon platform. Management expressed optimism about the company’s strategic long-term growth priorities, supported by investments in clinical programs and technology to drive increased shareholder value.
Agilon Health, Inc. (NYSE:AGL) provides healthcare services and also engages in the provision of technology, capital, people, process, and access to a peer network of primary care physicians.
10. LifeStance Health Group, Inc. (NASDAQ:LFST)
Stock Price: $4.79
Analyst Upside: 77.45%
Number of Hedge Fund Holders: 24
LifeStance Health Group, Inc. (NASDAQ:LFST) is one of the 13 Stocks Under $5 With High Upside Potential. On May 27, Morgan Stanley analyst Craig Hettenbach maintained a Buy rating on LifeStance Health Group, Inc. (NASDAQ:LFST), keeping the associated price target the same at $10.
The analyst based the rating on the company’s growth potential and strategic positioning, stating that LifeStance Health Group, Inc. (NASDAQ:LFST) is well-positioned to capitalize on the rising demand for outpatient mental health services.
This trend is driven by reduced social stigma regarding seeking behavioral health care, along with a shift to in-network insurance coverage. According to the analyst, LifeStance Health Group, Inc. (NASDAQ:LFST) has a hybrid care model that mixes in-person and virtual visits, supporting this demand through increasing flexibility for both clinicians and patients.
The analyst further reasoned that LifeStance Health Group, Inc. (NASDAQ:LFST) is focusing on long-term EBITDA margin expansion, and management is confident about its potential to attain 15%-20% margins, up from the current guidance of around 10% by 2025.
Hettenbach expects various factors to drive this margin expansion, including center margins improvements, slower growth in general and administrative expenses relative to revenue, and the introduction of higher-margin services.
LifeStance Health Group, Inc. (NASDAQ:LFST) provides outpatient mental health services, including psychological and neuropsychological testing, psychiatric evaluations and treatment, and individual, family, and group therapy. The company operates through a mental health platform and also offers virtual care via its online delivery platform, as well as in-person care at centers located in 32 US states.
9. DeFi Technologies Inc. (NASDAQ:DEFT)
Stock Price: $3.10
Analyst Upside: 88.51%
Number of Hedge Fund Holders: N/A
DeFi Technologies Inc. (NASDAQ:DEFT) is one of the 13 Stocks Under $5 With High Upside Potential. In a report released on June 17, Ed Engel from Compass Point maintained a Buy rating on DeFi Technologies Inc. (NASDAQ:DEFT) with a price target of $6.50.
The analyst based the rating on the company’s potential for profitability and growth, stating that it has demonstrated the ability to transform its substantial assets under management into significant EBITDA. This suggests a strong operational model with a low fixed cost base.
The analyst further reasoned that this efficiency is especially significant because of the company’s small workforce, showing that DeFi Technologies Inc. (NASDAQ:DEFT) can attain further growth without considerable reinvestment.
Another factor supporting the analyst’s optimistic outlook for DeFi Technologies Inc. (NASDAQ:DEFT) is its international expansion strategy, especially the company’s plans to exchange-traded products on stock exchanges in Singapore and the UAE.
DeFi Technologies Inc. (NASDAQ:DEFT) provides investment services and plans to acquire debt, equity, or other securities of private or publicly traded companies or other entities. Its offerings include DeFi ETNs, DeFi Governance, DeFi Venture, and DeFi Treasury.
8. Stagwell Inc. (NASDAQ:STGW)
Stock Price: $4.56
Analyst Upside: 91.89%
Number of Hedge Fund Holders: 19
Stagwell Inc. (NASDAQ:STGW) is one of the 13 Stocks Under $5 With High Upside Potential. On June 9, Craig-Hallum analyst Jason Kreyer maintained a Buy rating on Stagwell Inc. (NASDAQ:STGW) without a price target.
The company demonstrated improving trends in fiscal Q4 2024, with revenue increasing by 20% and net revenue rising by 14% during the quarter. This growth was attributed to continued strong momentum in Digital Transformation, which drove revenue growth by 22% and net revenue growth by 15% year-over-year.
The company’s Performance Media and Data segment also performed well, increasing revenue by 12% and net revenue by 16% year-over-year.
Stagwell Inc. (NASDAQ:STGW) is a global marketing company specializing in performance media and data, digital transformation, creativity and communications, and consumer insights and strategy. The Brand Performance Network segment encompasses creative media consulting, business-to-business marketing capabilities, and more.
The Communications Network covers a network offering strategic corporate communications, advocacy, public relations, investor relations, online fundraising, and other services to political and advocacy organizations and corporations.
7. Akebia Therapeutics, Inc. (NASDAQ:AKBA)
Stock Price: $3.62
Analyst Upside: 93.37%
Number of Hedge Fund Holders: 19
Akebia Therapeutics, Inc. (NASDAQ:AKBA) is one of the 13 Stocks Under $5 With High Upside Potential. On May 29, Leerink Partners analyst Roanna Ruiz maintained a Buy rating on Akebia Therapeutics, Inc. (NASDAQ:AKBA) and set a price target of $7.00.
The analyst reasoned that Akebia Therapeutics, Inc. (NASDAQ:AKBA) holds potential for growth, as discussions with key opinion leaders (KOLs) point towards considerable momentum for its product Vafseo in the dialysis market. Vafseo currently holds approval for the treatment of anemia in chronic kidney disease (CKD) dialysis patients, and is a notable revenue growth driver for the company, according to Ruiz.
He further said that the non-dialysis CKD market shows another notable opportunity for the company, dependent on the success of the Phase 3 VALOR trial, anticipated to start in H2 2025. The analyst reasoned that the trial holds the potential to enhance the company’s market potential and cause significant expansion of Vafseo’s label.
Akebia Therapeutics, Inc. (NASDAQ:AKBA) is a biopharmaceutical company that develops and commercializes therapeutics for kidney diseases and renal and metabolic disorders. Its product pipeline includes Auryxia and Vadadustat.
6. Kosmos Energy Ltd. (NYSE:KOS)
Stock Price: $1.98
Analyst Upside: 117.17%
Number of Hedge Fund Holders: 24
Kosmos Energy Ltd. (NYSE:KOS) is one of the 13 Stocks Under $5 With High Upside Potential. On June 29, Jefferies analyst Mark Wilson maintained a Buy rating on Kosmos Energy Ltd. (NYSE:KOS) and set a price target of £2.70.
The company’s fiscal Q1 2025 results showed a net production of around 60,500 barrels of oil equivalent per day (boepd), with sales of approximately 49,600 boepd. Revenue for the quarter reached $290 million, which translates to $65.27 per boe, excluding the impact of derivative cash settlements.
Management is optimistic about Kosmos Energy Ltd.’s (NYSE:KOS) future prospects, as the long-term outlook for its portfolio remains positive. This outlook is supported by a 2P reserves-to-production ratio of over 20 years as the company focuses on cost control, debt paydown, and cash generation in the near term.
Kosmos Energy (NYSE:KOS) is a deepwater, full-cycle, independent oil and gas exploration and production company focused on the offshore Atlantic Margins. Its primary assets encompass production offshore Equatorial Guinea, Ghana, and the United States Gulf of Mexico, along with gas projects offshore Senegal and Mauritania. The company operates in four geographical reporting segments: Equatorial Guinea, Ghana, the US Gulf of Mexico, and Senegal/Mauritania.
5. Opko Health Inc. (NASDAQ:OPK)
Stock Price: $1.36
Analyst Upside: 120.59%
Number of Hedge Fund Holders: 26
Opko Health Inc. (NASDAQ:OPK) is one of the 13 Stocks Under $5 With High Upside Potential. On May 1, analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on Opko Health Inc. (NASDAQ:OPK), retaining the price target of $3.00. Despite mixed fiscal Q1 2025 results, the rating was supported by future prospects and strategic developments undertaken by the company.
Although Opko Health Inc. (NASDAQ:OPK) reported a decline in consolidated total revenue to $149.9 million in fiscal Q1 2025, the analyst sees potential in its future guidance. Management expects total revenue for full year 2025 to be in the $675-685 million range.
In addition, Chen expects the pending transaction with Labcorp to close in the third quarter of 2025, thereby increasing profitability and streamlining BioReference’s operations. He further stated that a significant factor lending Opko Health Inc. (NASDAQ:OPK) a prominent position in the obesity and metabolic disorders treatment space is the advancement of an innovative oral dual agonist GLP-1/glucagon peptide. The company has plans to file an IND application later in the year.
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.
4. Ardelyx Inc. (NASDAQ:ARDX)
Stock Price: $4.27
Analyst Upside: 134.19%
Number of Hedge Fund Holders: 28
Ardelyx Inc. (NASDAQ:ARDX) is one of the 13 Stocks Under $5 With High Upside Potential. On July 2, Jefferies analyst Dennis Ding maintained a Buy rating on Ardelyx Inc. (NASDAQ:ARDX) with an associated price target of $8.00. The rating was influenced by various factors related to the company’s ongoing legal battle over the classification of Xphozah with CMS.
The analyst reasoned that the recent update on the docket for oral arguments set for September 25 may potentially result in a favorable appeals decision by the end of the year, which in turn could restore Part D coverage for Xphozah.
He considers this restoration to have a significantly positive effect on Ardelyx Inc.’s (NASDAQ:ARDX) growth prospects, as the drug was a significant revenue driver with more than $160 million in its first year of launch.
While Ding acknowledged that the legal case is complicated, the possibility of overturning the Chevron doctrine challenges CMS’s interpretation of law, and therefore may prove beneficial for Ardelyx Inc. (NASDAQ:ARDX).
Ardelyx Inc. (NASDAQ:ARDX) develops and commercializes biopharmaceutical products. It is also involved in the development of an innovative platform that discovers new biological mechanisms and pathways to develop efficacious therapies, reducing the drug-drug interactions and side effects of traditional medicines.
3. MannKind Corporation (NASDAQ:MNKD)
Stock Price: $3.60
Analyst Upside: 150.00%
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the 13 Stocks Under $5 With High Upside Potential. On June 27, analyst Yun Zhong from Wedbush maintained a Buy rating on MannKind Corporation (NASDAQ:MNKD) with an $11.00 price target. The optimistic rating is based on the company’s innovative product, Afrezza, an ultra-rapid-acting inhaled insulin for adults with type 1 or type 2 diabetes.
The analyst sees MannKind Corporation’s (NASDAQ:MNKD) inhaled insulin product as a considerably undervalued opportunity in the diabetes treatment segment. The product has potential in both pediatric and adult populations, supported by recent clinical data from the Phase 3 INHALE-1 and INHALE-3 studies presented at major conferences.
According to the analyst, these studies point towards Afrezza’s position as an ultra-rapid acting insulin option that may lead to increased market adoption. The product also has the potential to expand into additional patient populations, which further supports the analyst’s optimistic rating for MannKind Corporation’s (NASDAQ:MNKD) future operations.
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes innovative therapeutic devices and products that address serious unmet medical needs for endocrine and orphan lung diseases. The company’s pipeline and products include Afrezza, Pediatric Afrezza, V-Go, Tyvaso DPI, MNKD-101, MNKD-201, MNKD-301, and MNKD-501.
2. Geron Corporation (NASDAQ:GERN)
Stock Price: $1.43
Analyst Upside: 179.72%
Number of Hedge Fund Holders: 41
Geron Corporation (NASDAQ:GERN) is one of the 13 Stocks Under $5 With High Upside Potential. In a report released on June 1, Faisal Khurshid from Leerink Partners reiterated a Buy rating on Geron Corporation (NASDAQ:GERN).
The company reported $39.4 million in net product revenue for RYTELO (imetelstat) in Q1 2025, continuing the first year of US commercialization. Demand for RYTELO in the 13-week period through the week ending March 28 rose 1% compared to the prior 13 weeks.
Geron Corporation (NASDAQ:GERN) also attained market authorization for the product as a monotherapy from the European Commission (EC), with launch planning underway. The company expects to commercialize RYTELO in select EU countries from 2026.
Geron Corporation (NASDAQ:GERN) is a biotechnology company that develops Imetelstat, a telomerase inhibitor in hematologic myeloid malignancies. It focuses on oncology-focused therapeutic products.
1. ImmunityBio Inc. (NASDAQ:IBRX)
Stock Price: $2.72
Analyst Upside: 194.12%
Number of Hedge Fund Holders: 10
ImmunityBio Inc. (NASDAQ:IBRX) is one of the 13 Stocks Under $5 With High Upside Potential. ImmunityBio Inc. (NASDAQ:IBRX) announced on June 2 that the US Food and Drug Administration, FDA, granted Expanded Access authorization for its Cancer BioShield platform, anchored by ANKTIVA, for the treatment of lymphopenia. Lymphopenia is a life-threatening immune deficiency induced by radiotherapy, chemotherapy, and immunotherapy.
Following the announcement, H.C. Wainwright analyst Andres Y. Maldonado maintained a Buy rating on ImmunityBio Inc. (NASDAQ:IBRX) on June 4 and set a price target of $8.00. The analyst reasoned that the Cancer BioShield platform and the company’s therapies hold the potential to address immune collapse in complex cancer cases, bringing a positive light to its operations.
ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage immunotherapy company that develops next-generation therapies to treat cancer and infectious diseases. Its immunotherapy platform activates the adaptive and innate immune systems to create long-term immunological memory.
While we acknowledge the potential of IBRX 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 IBRX and that has 100x upside potential, check out our report about this cheapest AI stock.
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