5 Stocks Under $5 with Huge Upside Potential

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1. UWM Holdings Corporation (NYSE:UWMC)

UWM Holdings Corporation (NYSE:UWMC) is one of the best stocks under $5 with huge upside potential. Keefe Bruyette cut the price target on UWM Holdings Corporation (NYSE:UWMC) to $5 from $6 on April 10, reiterating a Market Perform rating on the shares. UWM Holdings Corporation (NYSE:UWMC) also received a rating update from Barclays on April 6. The firm cut the price target on the stock to $5 from $6, and maintained an Overweight rating on the shares. Barclays told investors in a research note that it adjusted mortgage finance targets as part of a fiscal Q1 earnings preview, adding that higher rates have reset valuations lower.

The firm also said that despite a 40 basis point increase from the February trough for the 30-year fixed-rate mortgage, it is only modestly higher when compared to the start of the year. It sees positive risk/rewards at current valuations for the mortgage origination-levered stocks.

In a separate development, UWM Holdings Corporation (NYSE:UWMC) updated its outlook for fiscal Q1 and full year 2026 on March 9, stating that the company’s total loan origination volume was $49.6 billion for fiscal Q4 2025. This represents its highest quarterly origination volume since 2021.

UWM Holdings Corporation (NYSE:UWMC) also stated that its investments in AI are now implemented and working in various areas, and it is confident in handling two to three times its current volume while avoiding the need to replace team members who depart through natural attrition.

While we acknowledge the potential of UWMC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UWMC and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

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