5 Best Undervalued Stocks to Buy Under $5

In this piece we will look at the 5 Best Undervalued Stocks to Buy Under $5. Please visit 10 Best Undervalued Stocks to Buy Under $5 if you’d like to see an extended list and how we came up with the list of Best Undervalued Stocks to Buy Under $5.

​5. Gerdau S.A. (NYSE:GGB)

Forward P/E Ratio: 8

Number of Hedge Fund Holders: 22

Gerdau S.A. (NYSE:GGB) is one of the Best Undervalued Stocks to Buy Under $5. Gerdau S.A. (NYSE:GGB) has gained more than 5% since its fiscal Q1 2026 earnings and more than 25% over the past 6 months. It is also undervalued with a forward price to earnings ratio of 8, below the sector average of 16.76.

​The improvement in share price is partly driven by expanding North American operations. Wall Street expects a modest 6.2% upside from the current levels. On April 28, the company released its fiscal Q1 2026 earnings. During the quarter, the company reported adjusted EPS of R$0.51, which missed the estimates of R$0.676. The revenue came in at R$16.72 billion, slightly below the expectations of R$17.06 billion.

Notably, the North American segment delivered its best performance since 2022, driven by strong data center demand. The segment accounted for more than 75% to the total adjusted EBITDA of R$3 billion. The company maintained its 2026 CapEx guidance at R$4.7 billion and expects to generate positive free cash flow throughout the year.

Gerdau S.A. (NYSE:GGB) produces and commercializes steel products. The company’s operations are divided into the following segments: Brazil Operation, North America Operation, South Africa Operation, and Special Steels Operation.