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15 Strong Buy Stocks Under $5 to Buy Now

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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.

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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.

And that’s where the real opportunity lies…

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

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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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.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…