In this article, we will look at the 7 Cheap Energy Stocks Under $5.
On September 23, Hemant Taneja, CEO and managing partner of General Catalyst, joined CNBC television for an interview to discuss the connection between AI and the energy sector. He noted that the AI opportunity is fundamentally tied to the energy opportunity, due to the inherent energy requirement of AI. He argued that the world faces major challenges, including wars, a broken healthcare system, an energy crisis, and rapid AI growth. Taneja believes that this demands a new approach that emphasizes building companies with long-term strategies.
He highlighted that AI and energy are deeply connected. This is because AI requires massive computing power, which in turn depends on huge energy resources. Taneja noted that over the next 20 to 30 years, the energy sector must scale significantly to keep up with AI’s growth. He pointed out natural gas as a key short-term resource because of its abundance, but stressed the necessity of scaling renewable infrastructure, including solar, for a sustainable future. Moreover, he also believes that long-term breakthroughs in fusion energy also hold promise, and his firm invests in startups pursuing these innovations. He stressed the need for building resilient systems, whether in healthcare, energy, or supply chains, through collaborations and innovation. He also referenced his new book, which advocates for principles to create such enduring change in capitalism, focusing on how technology and energy infrastructure must evolve hand in hand for society’s benefit.
With that, let’s take a look at the 7 Cheap Energy Stocks Under $5.
Our Methodology
To curate the list of 7 Cheap Energy Stocks Under $5, we used the Finviz Stock Screener, Seeking Alpha, and Insider Monkey’s Q2 2025 database. Using the Screener, we aggregated a list of Energy stocks trading under $5 and below the forward P/E ratio of 15. Next, we cross-checked the P/E ratio from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database.
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).
7 Cheap Energy Stocks Under $5
7. Imperial Petroleum Inc. (NASDAQ:IMPP)
Price: $4.89
P/E Ratio: 4.41
Imperial Petroleum Inc. (NASDAQ:IMPP) is one of the Cheap Energy Stocks to Buy Under $5. On September 5, Imperial Petroleum Inc. (NASDAQ:IMPP) released its fiscal second-quarter results for 2025. The stock is up more than 38.66% since the release.
The company topped Wall Street estimates, with EPS of $0.35 ahead of the consensus by $0.31. Moreover, the revenue of $36.35 decreased 22.73% year-over-year, but was still ahead of the consensus by $6.65 million.
After the release on September 10, Maxim analyst Tate Sullivan raised the firm’s price target on Imperial Petroleum Inc. (NASDAQ:IMPP) from $5.5 to $6, while maintaining a Buy rating on the stock. The analyst noted that the fiscal second quarter results were much better than the expectations, mainly driven by the higher shipping rates for both existing tankers. In addition, the company also acquired seven dry bulk ships during the quarter. He noted that the demand for dry bulk and energy imports remains solid from China.
Imperial Petroleum Inc. (NASDAQ:IMPP) is a Greece-based company that specializes in international shipping and transportation of liquefied petroleum and petrochemical products.
6. Ultrapar Participações S.A. (NYSE:UGP)
Price: $3.96
P/E Ratio: 8.86
Ultrapar Participações S.A. (NYSE:UGP) is one of the Cheap Energy Stocks to Buy Under $5. Ultrapar Participações S.A. (NYSE:UGP) is up more than 18.33% since the release of its fiscal second quarter results for 2025, on August 15.
The company posted a revenue of $34.06 billion, which grew 5.29% year-over-year. Notably, the net income of $1.09 billion also grew 148.53% year-over-year. Management is expecting seasonally stronger volumes and profitability improvement for Ipiranga in the next quarter.
Recently, on September 26, Goldman Sachs raised the price target on Ultrapar Participações S.A. (NYSE:UGP) from $4 to $4.5, while maintaining a Buy rating on the stock.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian company focused on automotive fuel retail and related industries.
