5 Best Affordable Stocks To Buy Under $5

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

5. WeWork Inc. (NYSE:WE)

Number of Hedge Fund Holders: 21
Share Price as of September 19: $4.05

WeWork Inc. (NYSE:WE) is a New York-based company that provides flexible shared workspace solutions for businesses and individuals. It is one of the best affordable stocks on our list with a share price of $4.05, as of September 19. The company generated $844 million in revenues in the second quarter of 2023, which showed a 3.6% growth from the same period last year. It also reported a consolidated physical occupancy of 72% at the end of the quarter.

At the end of Q2 2023, 21 hedge funds in Insider Monkey’s database reported having stakes in WeWork Inc. (NYSE:WE), down from 23 in the previous quarter. The total value of these stakes is over $30.4 million.

4. bluebird bio, Inc. (NASDAQ:BLUE)

Number of Hedge Fund Holders: 22
Share Price as of September 19: $3.19

bluebird bio, Inc. (NASDAQ:BLUE) is next on our list of the best affordable stocks to buy now. The biotech company focuses on developing gene and cell therapies to treat severe genetic and rare diseases. The company reported strong earnings in the second quarter of 2023, with its revenue showing 353.3% year-over-year growth at $6.9 million. At the end of the quarter, it had over $291 million available in cash and cash equivalents.

Insider Monkey’s database of Q2 2023 showed that 22 hedge funds owned stakes in bluebird bio, Inc. (NASDAQ:BLUE), up from 20 in the previous quarter. The collective value of these stakes is over $68.8 million. With a stake value of over $24.2 million, Tang Capital Management owned the largest position in the company in Q2.

3. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 24
Share Price as of September 19: $1.52

Lumen Technologies, Inc. (NYSE:LUMN) is a telecommunications company that offers a wide range of technology and communication services to consumers, businesses, and government agencies. The stock currently trades at $1.52 per share, as of September 19. It is among the best affordable stocks on our list.

As of the end of Q2 2023, 24 hedge funds in Insider Monkey’s database owned stakes in Lumen Technologies, Inc. (NYSE:LUMN), worth collectively $103.7 million.

Longleaf Partners mentioned Lumen Technologies, Inc. (NYSE:LUMN) in its Q2 2023 investor letter. Here is what the firm has to say:

“We exited second-time holding Alphabet and long-term position Lumen Technologies, Inc. (NYSE:LUMN) in the quarter. We sold our remaining position in Lumen, after reducing our position in the first quarter when it became clearer the new management team under CEO Kate Johnson would not pursue a strategic path to monetizing Lumen’s consumer business. At their first analyst day in early June, new management presented disappointingly weak financial targets and significant further spending without a clear path to revenue growth. Throughout our holding period, we saw bond market pricing holding up and supporting our case for the strength of Lumen’s balance sheet, but in the second quarter, this reversed with bond prices becoming overly distressed. We lowered our appraisal as our outlook for the company deteriorated, leading to a full exit in the quarter. Lumen represented a permanent capital loss for the Fund, a significant opportunity cost for the portfolio and a disappointing long-term mistake. Lumen has reinforced the importance of limiting overweight positions in the portfolio, being cautious of leverage and value declines, and fully re-underwriting a case – and being willing to move on – when the people and/or underlying facts change.”

2. Nerdy, Inc. (NYSE:NRDY)

Number of Hedge Fund Holders: 25
Share Price as of September 19: $3.7

Nerdy, Inc. (NYSE:NRDY) is a Missouri-based education technology company that offers online learning and tutoring services. The company’s mission is to provide personalized and engaging learning experiences for students of all ages, primarily focusing on K-12 education and test preparation. Its Q2 2023 revenue showed a 15.6% year-over-year growth at $48.8 million.

With a total stake value of over $96.3 million, 25 hedge funds in Insider Monkey’s database held positions in Nerdy, Inc. (NYSE:NRDY) in Q2 2023. In the previous quarter, 22 funds owned stakes in the company, worth over $103.5 million in total.

1. Vimeo, Inc. (NASDAQ:VMEO)

Number of Hedge Fund Holders: 31
Share Price as of September 19: $3.64

Vimeo, Inc. (NASDAQ:VMEO) tops our list of the best affordable stocks under $5. The video hosting and streaming platform posted revenue of $102 million in the second quarter of 2023, which beat analysts’ estimates by $1.41 million. For the next quarter, the company expects its revenue to be slightly above $100 million.

At the end of June 2023, 31 hedge funds owned stakes in Vimeo, Inc. (NASDAQ:VMEO), compared with 32 in the previous quarter, according to Insider Monkey’s database. The consolidated value of these stakes is $142.4 million.

You can also take a look at 15 Worst Performing Currencies of 2023 and Semiconductor Market Share By Company: Top 12

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