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.
13. Bitfarms Ltd. (NASDAQ:BITF)
Stock Price: $1.27
Analyst Upside: 116.54%
Number of Hedge Fund Holders: 10
Bitfarms Ltd. (NASDAQ:BITF) is one of the top strong buy stocks under $5 to buy now. On August 18, Bitfarms Ltd. (NASDAQ:BITF) announced that it strengthened its board with the appointment of Wayne Duso.
Bitfarms Ltd.’s (NASDAQ:BITF) Board of Directors unanimously approved Mr. Duso’s appointment to the Company’s Board, effective immediately.
Management reported that with Mr. Duso’s appointment, Bitfarms Ltd.’s (NASDAQ:BITF) Board of Directors includes seven directors, six of whom are independent.
Bitfarms Ltd. (NASDAQ:BITF) is a vertically integrated Bitcoin mining company based in Canada. Its Bitcoin data centers have operations in the US, Canada, Argentina, and Paraguay.
The company operates server farms that comprise computers (Miners) specifically designed to validate transactions on the Bitcoin Blockchain.
12. Eve Holding Inc. (NYSE:EVEX)
Stock Price: $4.03
Analyst Upside: 86.10%
Number of Hedge Fund Holders: 11
Eve Holding Inc. (NYSE:EVEX) is one of the top strong buy stocks under $5 to buy now. On August 20, Canaccord analyst Austin Moeller lowered the firm’s price target on Eve Holding Inc. (NYSE:EVEX) to $6.75 from $7, keeping a Buy rating on the shares.
The firm told investors that it continues to believe that Eve Holding Inc.’s (NYSE:EVEX) relationship with the Brazilian Development Bank and Embraer is favorable.
This is primarily because the relationship ensures continued test/manufacturing infrastructure in São Paulo, as well as engineering personnel from the world’s third-largest aircraft OEM.
According to the analyst, the improved liquidity position presents a solid footing for Eve Holding Inc. (NYSE:EVEX) for execution on its intended 2027 ANAC certification and commercialization of its Eve-100 aircraft.
Eve Holding Inc. (NYSE:EVEX) is an aerospace company that develops Urban Air Mobility (UAM) solutions and operates in Florida, Melbourne, and Brazil. Its operations cover the design and production of electric vertical takeoff and landing vehicles (eVTOLs) and the new Urban Air Traffic Management system.
The company is also engaged in a portfolio of company and third-party eVTOL support and maintenance services. These include material services, technical support, maintenance, ground handling, training, and data services.
11. Sana Biotechnology, Inc. (NASDAQ:SANA)
Stock Price: $3.58
Analyst Upside: 151.40%
Number of Hedge Fund Holders: 16
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the top strong buy stocks under $5 to buy now. In a report released on August 21, Reni Benjamin from Citizens JMP reiterated a Buy rating on Sana Biotechnology, Inc. (NASDAQ:SANA), setting a price target of $5.00.
Sana Biotechnology, Inc. (NASDAQ:SANA) announced its fiscal Q2 2025 results on August 11, reporting a cash position of $72.7 million and a pro forma Q2 2025 cash position of $177.2 million. This includes gross proceeds from sales of common stock through the ATM and equity financing in July and August 2025.
The company also reported positive 6-month clinical results of the ongoing type 1 diabetes study, showing that “hypoimmune-modified pancreatic islet cells transplanted without immunosuppression overcome immune recognition, while continuing to function and persist with stable C-peptide.”
Sana Biotechnology (NASDAQ:SANA) is a biotechnology company that specializes in using engineered cells as medicines. It develops cell engineering programs that transform treatment across several therapeutic areas with treatment gaps, including diabetes, oncology, the central nervous system, and B-cell-mediated autoimmune disorders.
10. Precigen, Inc. (NASDAQ:PGEN)
Stock Price: $4.18
Analyst Upside: 97.37%
Number of Hedge Fund Holders: 16
Precigen, Inc. (NASDAQ:PGEN) is one of the top strong buy stocks under $5 to buy now. H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Precigen, Inc. (NASDAQ:PGEN) on August 19, keeping the associated price target the same at $8.50.
The analyst supported his positive rating with several factors, including the recent FDA approval of Papzimeos that surpassed expectations with its earlier-than-anticipated announcement.
He added that the approval encompasses a broad indication for recurrent respiratory papillomatosis, proving beneficial to around 27,000 adult American patients.
The label is favorable, including a broad indication and positive durability data, bolstering the drug’s market potential, according to the analyst.
Ramakanth also stated that Papzimeos has a promising financial outlook, with estimated sales of around $15 million in Q4 2025.
Precigen, Inc. (NASDAQ:PGEN) is a biotechnology company involved in the research and development of synthetic biology technologies. The company’s operations are divided into the following segments: Biopharmaceuticals, Exemplar, and Trans Ova.
9. Atai Life Sciences (NASDAQ:ATAI)
Stock Price: $4.57
Analyst Upside: 140.70%
Number of Hedge Fund Holders: 17
Atai Life Sciences (NASDAQ:ATAI) is one of the top strong buy stocks under $5 to buy now. Analyst Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on Atai Life Sciences (NASDAQ:ATAI) on August 18, keeping the price target at $15.00.
The analyst supported the optimistic rating with the promising outlook for BPL-003, a short-acting psychedelic therapy that treats treatment-resistant depression (TRD).
He expects the upcoming milestones, such as an FDA meeting and the Phase 2b and Phase 2a study results, to clear the way for Phase 3 trials, potentially bolstering Atai Life Sciences’ (NASDAQ:ATAI) market potential.
Trucchio added that he expects the strategic acquisition of Beckley Psytech and the redomiciliation to the US to be significant factors in growing investor interest and streamlining operations.
Headquartered in Germany, Atai Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
8. AbCellera Biologics Inc. (NASDAQ:ABCL)
Stock Price: $4.39
Analyst Upside: 93.62%
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the top strong buy stocks under $5 to buy now. In a report released on August 14, Srikripa Devarakonda from Truist Financial reiterated a Buy rating on AbCellera Biologics Inc. (NASDAQ:ABCL), setting a price target of $10.00.
AbCellera Biologics Inc. (NASDAQ:ABCL) reported its fiscal Q2 results on August 7, stating that it hit two critical milestones in the quarter: attaining authorization for the initiation of Phase 1 studies for both ABCL635 and ABCL575.
Carl Hansen, Ph.D., founder and CEO of AbCellera Biologics Inc. (NASDAQ:ABCL), told investors that the company successfully began dosing the first participants in the Phase 1 study of ABCL635, marking a “landmark achievement” for the company as it completes its transition to a clinical-stage biotechnology company.
Hansen added that with more than $750 million in available liquidity, AbCellera Biologics Inc. (NASDAQ:ABCL) is well-positioned to continue the execution of its strategy.
AbCellera Biologics (NASDAQ:ABCL) solves antibody discovery problems by integrating data science, technology, infrastructure, and interdisciplinary teams.
The company 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.
7. PowerFleet Inc. (NASDAQ:AIOT)
Stock Price: $4.72
Analyst Upside: 90.68%
Number of Hedge Fund Holders: 23
PowerFleet Inc. (NASDAQ:AIOT) is one of the top strong buy stocks under $5 to buy now. Barrington analyst Gary Prestopino maintained a bullish stance on PowerFleet Inc. (NASDAQ:AIOT) on August 19, giving the stock a Buy rating with a $15 price target.
The analyst supported the optimistic rating with PowerFleet Inc.’s (NASDAQ:AIOT) strategic initiatives and solid financial performance, stating that the company’s fiscal Q1 2026 results exceeded both the market and the firm’s expectations with considerable EBITDA and revenue growth.
The analyst attributed this growth to PowerFleet Inc.’s (NASDAQ:AIOT) focus on high-margin recurring services, resulting in a significant rise in gross margins and service revenue.
Prestopino further stated that PowerFleet Inc. (NASDAQ:AIOT) exhibited operational efficiency by attaining considerable cost synergies and launching strategic programs with major partners to bolster pipeline growth.
PowerFleet Inc. (NASDAQ:AIOT) provides fleet management solutions for industrial, logistics, and vehicles. The company offers wireless Internet of Things and machine-to-machine solutions for controlling, securing, tracking, and managing enterprise assets, including containers, industrial trucks, tractor-trailers, cargo, and more.
Its operations are divided into the following geographical segments: the United States, Israel, and Other.
6. MannKind Corporation (NASDAQ:MNKD)
Stock Price: $4.11
Analyst Upside: 118.98%
Number of Hedge Fund Holders: 26
MannKind Corporation (NASDAQ:MNKD) is one of the top strong buy stocks under $5 to buy now. On August 8, Leerink Partners analyst Faisal Khurshid reiterated a Buy rating on MannKind Corporation (NASDAQ:MNKD), keeping the price target at $7.00.
Similarly, in a report released on August 7, Douglas Miehm from RBC Capital maintained a Buy rating on MannKind Corporation (NASDAQ:MNKD) with a price target of $7.00.
The same day, Mizuho Securities also released a report maintaining a Buy rating on the stock with a $10.00 price target.
Currently, the analyst consensus on MannKind Corporation (NASDAQ:MNKD) is a Strong Buy. The stock’s median price target of $4.11 implies an upside of 118.98% from current levels.
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.
5. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Stock Price: $3.69
Analyst Upside: 225.20%
Number of Hedge Fund Holders: 27
Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the top strong buy stocks under $5 to buy now. Leerink Partners analyst Andrew Berens reiterated a Buy rating on Relay Therapeutics, Inc. (NASDAQ:RLAY) on August 12, setting a price target of $12.00.
Raymond James also maintained a Strong Buy rating on the stock on August 8, but lowered the firm’s price target on Relay Therapeutics, Inc. (NASDAQ:RLAY) to $19 from $29.
The firm told investors in a research note that Relay Therapeutics, Inc. (NASDAQ:RLAY) reported Q2 results with OpEx down 16% quarter-over-quarter after strategic cost-cutting initiatives, which it considers meaningful.
Despite a ramp-up in the Phase 3 RLY-2608 study, the firm stated that it does not expect a considerable rise in burn in the near term.
Relay Therapeutics, Inc.’s (NASDAQ:RLAY) median price target of $3.69 implies an upside of 225.20% from current levels.
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage precision medicine company that uses advanced computational and experimental technologies to innovate drug discovery.
Its primary focus is on genetic disease indications and targeted oncology. The company’s Dynamo platform integrates a range of cutting-edge experimental and computational approaches to understand protein structure and motion in drug discovery.
4. Bit Digital, Inc. (NASDAQ:BTBT)
Stock Price: $2.88
Analyst Upside: 99.65%
Number of Hedge Fund Holders: 27
Bit Digital, Inc. (NASDAQ:BTBT) is one of the top strong buy stocks under $5 to buy now. In a report released on August 19, Michael Grondahl from Northland Securities maintained a Buy rating on Bit Digital, Inc. (NASDAQ:BTBT), setting a price target of $6.00.
Bit Digital, Inc. (NASDAQ:BTBT) reported its fiscal Q2 2025 results on August 14, reporting a total revenue of $25.7 million, down 11.7% compared to $29.0 million in fiscal Q2 2024.
Management attributed the decline to a drop in digital asset mining revenue as Bit Digital, Inc. (NASDAQ:BTBT) focused on Ethereum-native treasury and staking strategies.
Revenue from digital asset mining in the quarter dropped 58.8% to $6.6 million, driven primarily by increased network difficulty, a reduction in active hash rate, and the halving event in April 2024.
However, revenue from cloud services in the quarter underwent a 32.8% increase to $16.6 million, compared to $12.5 million in the same quarter last year.
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.
3. Denison Mines Corp. (NYSE:DNN)
Stock Price: $2.08
Analyst Upside: 39.10%
Number of Hedge Fund Holders: 27
Denison Mines Corp. (NYSE:DNN) is one of the top strong buy stocks under $5 to buy now. On August 19, Canaccord Genuity analyst Katie Lachapelle maintained a Buy rating on Denison Mines Corp. (NYSE:DNN), retaining the price target of C$4.10.
The analyst reasoned that Denison Mines Corp. (NYSE:DNN) recently conducted a significant convertible senior notes offering, raising considerable capital usable for development initiatives and future growth.
The initiative bolsters the company’s balance sheet, according to the analyst, offering it considerable flexibility to pursue strategic opportunities in the uranium market.
Lachapelle added that Denison Mines Corp. (NYSE:DNN) is well-positioned to capitalize on the favorable market conditions for uranium producers, with rising demand and potential supply constraints hiking up prices.
Denison Mines Corp. (NYSE:DNN) is involved in the exploration and development of uranium. The company holds interests in the Athabasca Basin, Wheeler River, Midwest Project, McClean Lake, and Waterbury Lake.
2. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Price: $3.00
Analyst Upside: 166.67%
Number of Hedge Fund Holders: 34
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the top strong buy stocks under $5 to buy now. Piper Sandler analyst Biren Amin maintained a Buy rating on Taysha Gene Therapies, Inc. (NASDAQ:TSHA) on August 18, setting a price target of $9.00.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) announced its fiscal Q2 2025 results on August 12, reporting $312.8 million in cash and cash equivalents as of June 30.
Management stated that this reflects the “gross proceeds of $230.0 million from the May 2025 follow-on financing, including full exercise of the underwriters’ option to purchase additional shares”.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) expects its current cash resources to support its planned operating expenses and capital requirements into 2028.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV) based gene therapies to treat monogenic diseases of the central nervous system.
1. Nuvation Bio Inc. (NYSE:NUVB)
Stock Price: $2.90
Analyst Upside: 141.38%
Number of Hedge Fund Holders: 36
Nuvation Bio Inc. (NYSE:NUVB) is one of the top strong buy stocks under $5 to buy now. In a report released on August 8, Robert Burns from H.C. Wainwright reiterated a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) with a price target of $10.00.
Similarly, in a report released on August 7, Leonid Timashev from RBC Capital reiterated a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) and set a price target of $7.00.
The same day, David Nierengarten from Wedbush also maintained a Buy rating on Nuvation Bio Inc. (NYSE:NUVB) with a price target of $6.00. The stock’s median price target of $2.90 implies an upside of 141.38% from current levels.
Nuvation Bio (NYSE:NUVB) is a biopharmaceutical company that develops therapeutic and differentiated candidates to tackle the gaps in oncology.
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