5 Stocks Under $5 With High Potential

In this article, we discuss the 5 stocks under $5 with high potential. If you want to read about some more high potential stocks, go directly to 10 Stocks Under $5 With High Potential.

5. Lloyds Banking Group plc (NYSE:LYG)

Number of Hedge Fund Holders: 8  

Share Price as of December 14: $2.29  

Lloyds Banking Group plc (NYSE:LYG) provides a range of banking and financial services in the United Kingdom. On December 11, Lloyds Banking Group revealed that its private equity arm, LDC, has made a significant investment in capital markets technology outfit, E-Trading Software. The investment will support E-Trading Software as it looks to grow its range of services and expand its offering internationally.

On October 28, JPMorgan analyst Raul Sinha maintained an Overweight rating on Lloyds Banking Group plc. (NYSE:LYG) stock and raised the price target to 58 GBP from 56 GBP.

At the end of the third quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $57.8 million in Lloyds Banking Group plc (NYSE:LYG), compared to 9 the preceding quarter worth $31.6 million.

In its Q3 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Lloyds Banking Group plc (NYSE:LYG) was one of them. Here is what the fund said:

“Lloyds’ great return is partly the result of its exceptionally low starting price. Nevertheless, company fundamentals have also improved in part because of management’s conservative approach to reserving for loan losses as well as its decision at the beginning of the pandemic to suspend its program of returning excess capital to shareholders—a program it has since reinstated.”