In this article, we will look at the 14 Stocks Under $5 with Highest Upside Potential.
On October 28, Paul Tudor Jones, Tudor Investment Corporation founder and CIO and Robin Hood Foundation founder and board member, appeared on CNBC’s ‘Squawk Box’ to talk about the latest trends in the market.
Jones stated that the situation feels exactly like 1999 to him, and while he does not know whether the market would replay it exactly, he does believe that all the ingredients are in place. Therefore, according to him, from a trading standpoint, one should position oneself as if it were October 1999. He does not see a reason why anyone would do anything but that, since the Nasdaq doubled between the first week of October 1999 and March 2000.
READ ALSO: 12 Most Undervalued Small Cap Stocks to Invest In Now and 9 Most Profitable Biotech Stocks to Buy.
Jones added that “if it looks like a duck and quacks like a duck, it is probably not a chicken”, and his guess is that all the ingredients are in place for some kind of a “blow off”. History often rhymes, which is why he believes that some version of it will happen again.
With these trends in view, let’s look at the best stocks under $5 with the highest upside potential.
Our Methodology
We used Finviz to compile a list of stocks under $5 that analysts were bullish on and selected the top 14 with the highest analyst upside potential. We also added the number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside.
Note: All data was recorded on October 29.
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).
14 Stocks Under $5 with Highest Upside Potential
14. Bit Digital, Inc. (NASDAQ:BTBT)
Analyst Upside: 55.84%
Share Price: $3.85
Number of Hedge Fund Holders: 27
Bit Digital, Inc. (NASDAQ:BTBT) is one of the best stocks under $5 with highest upside potential. On October 29, H.C. Wainwright analyst Kevin Dede maintained a Buy rating on Bit Digital, Inc. (NASDAQ:BTBT). The analyst set a $7 price target, basing the optimistic rating on the company’s growth potential and strategic positioning.
He cited the company’s shift from Bitcoin to Ethereum, stating that Bit Digital, Inc.’s (NASDAQ:BTBT) focus on HPC infrastructure lends it an advantageous position in the evolving crypto and technology landscape.
The CEO of Bit Digital, Inc. (NASDAQ:BTBT) boasts a solid Ethereum background, which positions the company well to effectively manage its Ethereum holdings and staking operations, according to the analyst.
Another key reason supporting Dede’s optimistic rating is Bit Digital, Inc.’s (NASDAQ:BTBT) considerable stake in WhiteFiber, which is involved in HPC-AI cloud and colocation services. WhiteFiber is trading at a discount compared to its peers, and the analyst believes that this undervaluation paves the way for future appreciation as the company’s market cap-to-sales ratio increasingly aligns with industry standards.
Headquartered in New York City, Bit Digital (NASDAQ:BTBT) is a holding company that provides a platform for digital assets and AI infrastructure. Its Bitcoin mining operations are spread through the US, Canada, and Iceland.
13. Stagwell Inc. (NASDAQ:STGW)
Analyst Upside: 69.13%
Share Price: $4.73
Number of Hedge Fund Holders: 15
Stagwell Inc. (NASDAQ:STGW) is one of the best stocks under $5 with highest upside potential. Rosenblatt Securities analyst Barton Crockett reiterated a Buy rating on Stagwell Inc. (NASDAQ:STGW) on October 29 and set a $9 price target on the shares.
The rating update followed Stagwell Inc.’s (NASDAQ:STGW) announcement on October 21 that The Marketing Cloud, which is a part of the Stagwell Network, reported the public launch of Agent Cloud. Agent Cloud is a “secure, unified platform that simplifies access to the world’s leading AI tools and purpose-built marketing assistants,” specifically designed for ease of use, flexibility, and security.
Management reported that Agent Cloud offers agencies and brands instant access to top multimodal LLMs and image/video tools (from GPT-5 to Gemini 2.5 Pro and Veo3), eliminating the “hassle of juggling multiple subscriptions”.
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, in contrast, covers a network offering strategic corporate communications, advocacy, public relations, investor relations, online fundraising, and other services to political and advocacy organizations and corporations.