In this article, we will look at the 15 Strong Buy Stocks Under $5 to Buy Now.
On August 22, Tom Lee, head of research and chief investment officer of Fundstrat Capital, appeared on CNBC’s ‘Squawk on the Street’ to talk about what he thinks about Fed Chair Powell’s speech at Jackson Hole, his expectations for the market, and more.
He stated that it appears that the Fed is acknowledging that risks are now tilted for the labor market to be softening, and they want to head that off, especially since they don’t think that tight labor markets are going to create inflation.
According to Lee, this is a “very good sign,” meaning that we have a dovish Fed again, which is a green light for equities and small caps.
READ ALSO: 10 Best Stocks to Invest in For the Long Term and 12 Most Promising Future Stocks According to Wall Street Analysts.
He added that although the markets had been holding their breath and getting defensive, there is relief now, and some capital gets put to work, which is good for equities and risk assets.
Discussing how much more the stocks could rally with the S&P at record highs, he stated that there is a lot of upside, especially because once the ISM returns to above 50, it really argues for a broadening of markets.
With these trends in view, let’s look at the top strong buy stocks under $5 to buy now.
A view of a financial trading floor with multiple traders observing stock market performance.
Our Methodology
We used Finviz and Tipranks to make a list of strong buy stocks with a stock price under $5 and selected the top 15 with consensus Strong Buy ratings and the highest number of hedge fund holders as of Q2 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database, and also added the analyst upside potential for each stock. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on August 22.
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).
15 Strong Buy Stocks Under $5 to Buy Now
15. BitFuFu Inc. (NASDAQ:FUFU)
Stock Price: $3.78
Analyst Upside: 71.96%
Number of Hedge Fund Holders: 9
BitFuFu Inc. (NASDAQ:FUFU) is one of the top strong buy stocks under $5 to buy now. H.C. Wainwright analyst Kevin Dede maintained a Buy rating on BitFuFu Inc. (NASDAQ:FUFU) on August 19, retaining a price target of $7.00.
The analyst based the rating on the company’s growth potential and strong performance, stating that its recent revenue surge suggests a robust market position, supported by a rise in cloud-mining demand and notable growth in network hashrate.
Although not available in the US, BitFuFu Inc. (NASDAQ:FUFU) holds the potential to attract a rising number of customers, which the analyst considers a significant indicator of its appeal to crypto enthusiasts. This holds especially true in North America, where operations are expanding.
BitFuFu Inc. (NASDAQ:FUFU) provides digital asset mining and cloud mining services. It functions through an array of stable and intelligent digital asset mining solutions, including one-stop cloud mining services and miner hosting services to individual digital asset enthusiasts and institutional customers. The company also offers a compliant, secure, and transparent blockchain infrastructure.
14. DeFi Technologies Inc. (NASDAQ:DEFT)
Stock Price: $2.24
Analyst Upside: 152.94%
Number of Hedge Fund Holders: 9
DeFi Technologies Inc. (NASDAQ:DEFT) is one of the top strong buy stocks under $5 to buy now. On August 20, H.C. Wainwright analyst Kevin Dede reiterated a Buy rating on DeFi Technologies Inc. (NASDAQ:DEFT), setting a $5.50 price target.
The analyst told investors that DeFi Technologies Inc. (NASDAQ:DEFT) has exhibited a promising rise in assets under management, rising from $773 million at the end of June to $947 million in July.
Dede expects this upward trend to continue, supported by broad-based bullish expectations for crypto adoption.
The analyst added that DeFi Technologies Inc.’s (NASDAQ:DEFT) product offering expansion is on track, with a goal of reaching 100 products by the end of the year, potentially bolstering AUM further.
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.
