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15 Best Affordable Stocks To Buy Under $5

In this article, we discuss 15 best affordable stocks to buy under $5. You can skip our detailed analysis of the stock market this year and changing investment trends, and go directly to read 5 Best Affordable Stocks To Buy Under $5

This year, the stock market has proven to be surprisingly strong after recording one of its worst periods in 2022. The S&P 500 has delivered a 16.2% return this year and the tech-heavy NASDAQ has gained 31.6%, bringing tech stocks to the limelight. As inflation picked up pace in August, investors are concerned about how the market will perform for the remainder of the year. Historical analysis shows that stocks tend to perform badly in September. According to data from CFRA Research, the S&P 500 has historically experienced an average decline of 0.7% in September since 1945. This aligns with the recent performance of the broader index, which has declined by 1.59% in September as of the 19th.

In addition to this, investors were disheartened by remarks from Federal Reserve Chair Jerome Powell during the Jackson Hole Economic Symposium, indicating that further tightening of monetary policy could be on the horizon. According to analysts, even if the Federal Reserve doesn’t raise interest rates further, it might decide to keep its benchmark rate at elevated levels for an extended period to combat inflation.

That said, Bank of America’s technical strategist, Stephen Suttmeier, believes that the index’s year-to-date rally positions it favorably to break this trend and potentially achieve additional gains this month. In his research note, he made the following comment:

“The best setup for both September and the rest of the year is when the S&P 500 rallies between 10% and 20% from January to August.”

He further pointed out that when the S&P 500 has gained between 10% and 20% before September, it tends to achieve positive returns for the month 65% of the time, with an average return of 0.8%.

Also read: 12 Best Affordable Stocks Under $30

Given the current state of the stock market, it’s a good idea to consider investing in cheaper stocks as a strategy to navigate these uncertain times. This can present buying opportunities for investors looking to acquire shares at a discount. However, it’s crucial to conduct thorough research on these affordable stocks to ensure they have strong fundamentals and growth potential. Cheap stocks can sometimes be cheap for a reason, such as poor financial health or limited growth prospects. As AI stocks like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA) are gaining attention this year, investors are also focusing on cheaper stocks. In this article, we have discussed some of the best affordable stocks to buy under $5.

Photo by Dan Dennis on Unsplash

Our Methodology:

For this list, we screened for stocks under $5, as of September 19. We then narrowed it down to companies with robust financial performance and stability, showing less sensitivity to market fluctuations. From the resultant dataset, we picked 15 stocks with the highest number of hedge fund investors tracked by Insider Monkey as of Q2 2023.

15. Mizuho Financial Group, Inc. (NYSE:MFG)

Number of Hedge Fund Holders: 8

Share Price as of September 19: $3.50

Mizuho Financial Group, Inc. (NYSE:MFG) is a prominent financial services conglomerate, based in Japan. The company operates a wide range of financial businesses and services, including retail banking, corporate banking, and investment banking.

In the first quarter of 2023, Mizuho Financial Group, Inc. (NYSE:MFG) reported total assets of over 266.1 ¥ million, which showed a roughly 12% hike from the same period last year. The stock currently trades at $3.50 per share, as of September 19, which makes it one of the best affordable stocks to buy. Since the start of 2023, the stock has delivered a 28.07% return to shareholders. In addition to MFG, popular tech companies such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA) are attracting investors’ attention widely.

At the end of Q2 2023, 8 hedge funds tracked by Insider Monkey reported having stakes in Mizuho Financial Group, Inc. (NYSE:MFG), which remained unchanged from the previous quarter. The collective value of these stakes is over $5.6 million.

14. Eastman Kodak Company (NYSE:KODK)

Number of Hedge Fund Holders: 14

Share Price as of September 19: $4.24

Eastman Kodak Company (NYSE:KODK) is next on our list of the best affordable stocks under $5 as the stock is currently trading at $4.24 per share. The American company that specializes in imaging and photography-related products and services. In the second quarter of 2023, the company posted revenue of $295 million, down 8% from the same period last year. However, its net income for the quarter grew to $35 million, from 20 million in the prior-year quarter.

As of the close of Q2 2023, 14 hedge funds in Insider Monkey’s database reported having stakes in Eastman Kodak Company (NYSE:KODK), up from 13 in the previous quarter. The overall value of these stakes is over $12.7 million. Among these hedge funds, GMT Capital was the company’s leading stakeholder in Q2.

13. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)

Number of Hedge Fund Holders: 14

Share Price as of September 19: $1.22

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is an American biopharmaceutical company that specializes in the discovery, development, and commercialization of pharmaceutical products, primarily in the fields of endocrinology and oncology. It is one of the best affordable stocks on our list with a share price of $1.22, as of September 19.

In the second quarter of 2023, Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) posted revenue of $0.32 million, up significantly by 805.7% from the same quarter last year. The company ended the quarter with over $256.7 million in cash and investments, compared with over $138.4 million in December 2022.

The number of hedge funds tracked by Insider Monkey owning stakes in Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) grew to 14 in Q2 2023, from 11 in the previous quarter. The overall value of these stakes is roughly $70 million. With nearly 20 million shares, Biotechnology Value Fund / BVF Inc was the company’s leading stakeholder in Q2.

12. Solo Brands, Inc. (NYSE:DTC)

Number of Hedge Fund Holders: 16

Share Price as of September 19: $4.7

Solo Brands, Inc. (NYSE:DTC) is a Texas-based company that deals in lifestyle brands. The company reported strong earnings in the second quarter of 2023, with a net income of $11.5 million, up 158% from the prior-year period. In the first six months of the year, it generated $51.8 million in operating cash flow, which saw a staggering 534.8% growth from the same period last year. Its free cash flow also grew by 393% on a year-over-year basis at $48.3 million.

Solo Brands, Inc. (NYSE:DTC) saw a huge uptick in hedge fund positions at the end of Q2 2023. According to Insider Monkey’s database, 16 hedge funds owned stakes in the company, up from 6 in the previous quarter. The overall value of these stakes is over $24.5 million.

11. Pitney Bowes Inc. (NYSE:PBI)

Number of Hedge Fund Holders: 17

Share Price as of September 19: $3.1

Pitney Bowes Inc. (NYSE:PBI) is an American tech company that provides a range of technology solutions for businesses, primarily in the areas of mail and shipping. It is one of the best affordable stocks on our list as it is trading at $3.1 per share. Moreover, the company also pays a quarterly dividend of $0.05 per share and has a dividend yield of 6.33%, as of September 19.

At the end of June 2023, 17 hedge funds in Insider Monkey’s database reported having stakes in Pitney Bowes Inc. (NYSE:PBI), compared with 22 in the previous quarter. The consolidated value of these stakes is over $22.3 million. Among these hedge funds, D E Shaw was the company’s leading stakeholder in Q2.

10. Stem, Inc. (NYSE:STEM)

Number of Hedge Fund Holders: 17

Share Price as of September 19: $4.49

Stem, Inc. (NYSE:STEM) is next on our list of the best affordable stocks to buy. The company specializes in providing energy storage and management solutions, primarily in the field of clean energy and sustainability. The company’s revenue for Q2 2023 came in at $93 million, which showed a 38.8% growth from the same period last year. It ended the quarter with $138.2 million available in cash and cash equivalents.

As of the close of Q2 2023, 17 hedge funds tracked by Insider Monkey reported having stakes in Stem, Inc. (NYSE:STEM), worth over $64.8 million. With over 3 million shares, Electron Capital Partners was the company’s leading stakeholder in Q2.

9. Blend Labs, Inc. (NYSE:BLND)

Number of Hedge Fund Holders: 17

Share Price as of September 19: $1.22

Blend Labs, Inc. (NYSE:BLND) is a company that provides digital lending technology solutions for the financial services industry. The company is also known for its expertise in the mortgage industry. In the second quarter of 2023, it reported revenue of $42.8 million, of which Platform revenue and Title revenue accounted for $30.3 million and $12.5 million, respectively. The company’s professional services revenue for the quarter showed a 10% year-over-year growth at $2.2 million. It is among the best affordable stocks on our list.

At the end of Q2 2023, 17 hedge funds in Insider Monkey’s database held stakes in Blend Labs, Inc. (NYSE:BLND), growing from 13 in the previous quarter. The collective value of these stakes is over $17 million.

8. Vanda Pharmaceuticals Inc. (NASDAQ:VNDA)

Number of Hedge Fund Holders: 18

Share Price as of September 19: $4.46

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) is a leading global biopharmaceutical company that specializes in the development and commercialization of pharmaceutical products to address central nervous system (CNS) disorders and other medical conditions.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) produced strong earnings in the first half of the year. The company’s revenue for the second quarter of 2023 came in at $46.1 million while in the first six months of 2023, it generated $108.6 million in revenues. Its net income for the quarter stood at $1.5 million.

At the end of the June quarter of 2023, Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) was a part of 18 hedge fund portfolios, up from 17 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $27.6 million.

7. Advantage Solutions Inc. (NASDAQ:ADV)

Number of Hedge Fund Holders: 19

Share Price as of September 19: $2.85

Advantage Solutions Inc. (NASDAQ:ADV) is a California-based company that provides sales and marketing services, as well as technology solutions, to help brands and retailers grow their businesses. At the end of Q2 2023, 19 hedge funds in Insider Monkey’s database owned investments in the company, compared with 20 in the previous quarter. The consolidated value of these stakes is over $81.7 million.

Advantage Solutions Inc. (NASDAQ:ADV), one of the best affordable stocks on our list, posted a revenue of over $1 billion in the second quarter of 2023, which saw a 6% growth from the prior year quarter. The company’s operating income for the quarter came in at $22.3 million.

6. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 19

Share Price as of September 19: $4.1

Sirius XM Holdings Inc. (NASDAQ:SIRI) ranks sixth on our list of the best affordable stocks under $5. The company is a leading provider of satellite radio services. In the second quarter of 2023, it reported strong earnings with a revenue of $2.25 billion, which fell in line with its revenue from the same period last year. The company also generated $323 million in free cash flow during the quarter.

Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA) are other popular tech companies to invest in this year.

According to Insider Monkey’s database of Q2 2023, 19 hedge funds owned stakes in Sirius XM Holdings Inc. (NASDAQ:SIRI), worth collectively over $76.4 million. Among these hedge funds, Balyasny Asset Management was one of the company’s leading stakeholders in Q2.

Click to continue reading and see 5 Best Affordable Stocks To Buy Under $5.

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Disclosure. None. 15 Best Affordable Stocks To Buy Under $5  is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…