The Best Stocks Under $5: An In-Depth Look at What You Need to Know!

Looking for the best stocks under $5? Well, there is tough competition when it comes to penny stocks. However, finding and investing in the best ones matter.

Penny stocks are those that trade at a price lower than $5.00 per share. Penny stocks are typically considered to be a risky investment, as they tend to be less liquid and therefore more volatile.

However, many penny stocks are worth investing in, as they offer excellent rewards for those who are patient and knowledgeable about stock market trends.

In this post, we’ll take a closer look at what you need to know before buying penny stocks, as well as the best stocks under $5 currently available on the market. So, if you have been waiting to buy some stock under $5? Now’s the time!

 

Should Investors Buy Stocks Under $5?

When it comes to investing, it’s important to consider a few things before making a purchase. One of the most important is whether or not the company you’re buying into is solvent. This means that they can pay their bills and have enough money left over to survive some tough times.

This can be done by checking out analyst ratings and reviews, as well as the stock price. Once you have a good understanding of the company, its stock, and the risks involved, it’s time to find an appropriate price point that’s fair for the investment. Don’t overpay or underpay – that’s how you end up losing money on a stock!

 

What Are The Rewards of Buying Stocks Under $5?

Investing in stocks is a great way to build wealth over time. However, not everyone is comfortable investing in stocks full-time. That’s where low-cost investments like stocks under $5 come in. They provide a high ROI, as well as the safety of being in a regulated market.

Plus, you’re investing in companies that have a good chance of doing well over the long term. So, whether you’re just getting started or you’re looking for an easy way to invest money, the best stocks under $5 are a great option.

 

How to Find The Best Stocks Under $5.00?

Investing in stocks can be a very lucrative and exciting experience. However, it’s important to be aware of the risks involved and to do your research before making any investments. To help you on your way, we will provide you with the best stocks under $5.00.

To get started, you’ll need to look for quality stocks that have growth potential and a price-to-earnings (P/E) ratio that’s below the market average. After you’ve selected a few candidates, it’s time to invest!

Remember, do not invest all of your money in one stock at once – start with a small amount and increase the investment if the stock proves to be profitable over time.

Finally, always remember that risk is part of any investment, so be sure to understand the risks involved before making an investment decision!

 

8 Best Stocks Under $5:

There are many great stocks under $5.00 and it can be tough to choose which ones to invest in. Before you invest, make sure the company is well-funded and has a solid track record. Also, be sure to find a stock that’s right for your investment goals – high yield, low risk, or both.

1. Two Harbors Investment Corp. (TWO:NYE):

A real estate investment trust called Two Harbors Investment Corp. (TWO:NYE) specializes in buying, managing, and financing residential mortgage-backed securities. The corporation is one of the biggest in the industry and has a portfolio worth more than $18 billion.

In 2022, Two Harbors Investment Corp. (TWO:NYE) stock has declined, and now is the ideal time for investors to buy. The company is currently selling at $3.23 per share and has a trailing twelve-month PE ratio of 5.34.

Two Harbors Investment Corp. has favorable sentiment on Wall Street (TWO:NYE). On October 5, RBC Capital analyst Kenneth Lee maintained an Outperform rating while lowering his price objective for Two Harbors Investment Corp. (TWO:NYE) from $5.50 to $4.50.

After the second quarter of 2022, 30 hedge funds had invested $143.4 million in Two Harbors Investment Corp. (TWO:NYE). Comparatively, 31 positions with $123 million in stakes were held in the prior quarter.

With $15.2 million invested in Two Harbors Investment Corp. (TWO:NYE) as of June 30, Citadel Investment Group is the company’s largest shareholder.

Last Closing Price: $3.23  See Analysis (TWO:NYE)

 

2. Qurate Retail Inc. (QRTEA:NSD):

A significant American media conglomerate and one of the biggest video commerce businesses in the world is Qurate Retail, Inc. (QRTEA:NSD). As of October 21, Qurate Retail, Inc. (QRTEA:NSD) is trading at a PE ratio of 6.21 and has free cash flows of $198 million.

The business is one of the greatest penny stocks to buy right now since it has a strong balance sheet and a dominant position in its sector.

Qurate Retail, Inc. is expected to grow. On August 25, Citi analyst Jason Bazinet maintained a Neutral rating and increased his price objective for Qurate Retail, Inc. (QRTEA:NSD) to $3.60 from $3.

24 hedge funds revealed ownership of holdings in Qurate Retail, Inc. at the end of Q2 2022. (QRTEA:NSD). These hedge funds invested a total of $201.3 million in the business.

FPR Partners, with interests in Qurate Retail, Inc. (QRTEA:NSD) totaling more than $57 million as of June 30, was the company’s largest stakeholder.

Last Closing Price: $2.11  See Analysis (QRTEA:NSD)

 

3. Genworth Financial Inc. (GNW:NYE):

Leading insurance provider Genworth Financial, Inc. (GNW:NYE) has a solid track record of financial health and stability. The business provides several different insurance products, such as life, long-term care, and mortgage insurance.

The stock of Genworth Financial, Inc. (GNW:NYE) is well-priced and provides investors with exceptional value. The stock is one of the best stocks under $5 to buy right now as of October 21 and is trading at a PE multiple of 2x.

Genworth Financial, Inc. (GNW:NYE) is a successful company with plenty of cash on hand and a track record of rewarding investors. The business has $545 million in free cash flow and a trailing 12-month operating margin of 16.87%. The ROE for Genworth Financial, Inc. (GNW:NYE) is 6.49% as well.

Genworth Financial, Inc. (GNW:NYE) was discovered on 22 hedge fund portfolios at the end of Q2 2022. These hedge funds invested a total of $93.3 million.

Shah Capital Management, with interests in Genworth Financial, Inc. (GNW:NYE) totaling more than $40 million as of June 30, was the business with the largest investment in the company.

Last Closing Price: $4.45  See Analysis (GNW:NYE)

 

4. Ambev SA (ABEV:NYE):

Leading international beverage firm Ambev SA (ABEV:NYE) has a potent lineup of well-known brands. The business has a solid track record of profitability and expansion.

The company qualifies for inclusion in the list of the best stocks under $5 to buy right now because of its diverse business model, which encompasses a wide range of goods and geographic markets.

Ambev SA (ABEV:NYE) has an ROE of 16.76% and a trailing 12-month operating margin of 22.71%. Additionally, the corporation has $13.59 billion in free cash flows.

On July 13, Lucas Ferreira, a JPMorgan analyst, boosted his price objective on Ambev SA’s (ABEV:NYE) shares to $17 from $15 and upgraded the company to Overweight from Neutral.

17 hedge funds held investments totaling $185.73 million in Ambev SA (ABEV:NYE) at the end of the second quarter of 2022.

The majority shareholder in the company was First Eagle Investment Management.

Last Closing Price: $2.94  See Analysis (ABEV:NYE)

 

5. Banco Santander S.A. (SAN:NYE):

Santander Bank, S.A. Spanish bank (SAN:NYE) provides a range of banking products and services for people, companies, and institutions. The bank is well-established in the US, Latin America, and Europe.

The bank is listed highly among the best stocks under $5 to buy right now and is well-positioned to profit from the expansion of the Spanish economy as well as the ongoing growth of its banking activities in Latin America and the United States.

Banco Santander, S.A. stock is traded. (SAN:NYE) had recently been on a run, and the company now seems to be trading at a discount. Banco Santander, S.A. as of October 21. (SAN:NYE) is currently selling at a PE multiple of 5x and has a 4.26% yield on its prospective dividends.

Banco Santander, S.A. received an upgrade from Citi analyst Marta Romero on September 27. (SAN:NYE) from Neutral to Buy and increased his EUR 3.20 price target to EUR 3.50. Banco Santander, S.A.’s price objective was increased by Pamela Zuluaga of Credit Suisse on October 10. (SAN:NYE) from $4 to $4.10 and kept an Outperform rating on the stock.

With 15 hedge funds Banco Santander, S.A. had investments totaling $494.4 million in the business at the end of Q2 2022.

Of those, Banco Santander, S.A.’s largest stakeholder was Ariel Investments with $16.87 million worth of investment.

Last Closing Price: $2.62  See Analysis (SAN:NYE)

 

6. The Lion Electric Company (LEV:NYE):

The Lion Electric Company (LEV:NYE) is a leading manufacturer of zero-emission electric vehicles. Its vehicles are used in a variety of roles, including school and public buses, medium and heavy-duty trucks, and urban delivery vehicles. The Lion Electric Company (LEV:NYE) has become a favorite among investors.

The Lion Electric Company (LEV:NYE) was covered by B. Riley analyst Christopher Souther on September 27 with a Buy rating and a $5 price objective.

The stock has since fallen in value and is currently trading at $2.48 per share. The Lion Electric Company (LEV:NYE) is among the most attractive penny stocks to purchase now.

Its trailing 12-month PE ratio is 1.80, and it is currently trading at $2.48 a share. As of October 21, The Lion Electric Company (LEV:NYE) holds the number six spot in the 2019 rankings.

The number of hedge funds has dropped by 10 in Q2 2022 in comparison to the previous quarter.

With 15 hedge funds holding 23.5 million in The Lion Electric Company (LEV:NYE) as of Q2 2022, the company has seen an increase in hedge fund interest.

Last Closing Price: $2.48  See Analysis (LEV:NYE)

 

7. B2Gold Corp. (BTG:NYE):

B2Gold Corp. (BTG:NYE) is a gold mining company with operations in Nicaragua, the Philippines, Namibia, Mali, and Burkina Faso. The firm has a current market value of $3.32 billion as of October 21, 2018.

The firm has been profitable, cash-rich, and successful at building value for shareholders. It has an ROE of 14.63%, a trailing 12-month operating margin of 38.13%, and $428.3 million in free cash flows. It has a high position on the list of best stocks to buy under $5, given its PE ratio of 8.72 and $3.14 share price as of October 21, 2018.

The company’s analyst Don DeMarco revised his price target to $7 from $7.50, while maintaining an Outperform rating.

On October 19, Stifel analyst Ingrid Rico changed her forecast to $7.25 from $7.50, while maintaining a Buy rating.

As of June 30, 2022, B2Gold Corp. (BTG:NYE) was tracked by 15 hedge funds. These funds held a collective $220 million in B2Gold Corp. (BTG:NYE) as of the end of Q2 2022.

B2Gold Corp. (BTG:NYE) was the most popular company on Renaissance Technologies’ portfolio as of June 30, 2022, with a $123 million investment.

Last Closing Price: $3.14  See Analysis (BTG:NYE)

 

8. Banco Bradesco S.A. (BBD:NYE):

Brazilian bank Banco Bradesco S.A. (BBD:NYE) provides a range of financial goods and services to people, companies, and corporations. The business has a long history of success, and it is in a good position to keep expanding.

For long-term investors, shares of Banco Bradesco S.A. (BBD:NYE) are attractively valued and present a strong purchasing opportunity.

As of October 21, the stock has an 8.98 PE ratio and a 3% dividend yield. Banco Bradesco S.A. (BBD:NYE) is one of the best stocks under $5 to invest in right now.

Goldman Sachs analyst Tito Labarta raised his target price for Banco Bradesco S.A. (BBD:NYE) from $4.40 to $5.40 in September.

Scotiabank analyst Jason Mollin upgraded Banco Bradesco S.A. (BBD:NYE) from Sector Perform to Outperform and raised his target from $22 to $24 on October 5. Mollin’s original target on the shares was $22.

As of Q2 2022, 14 hedge funds held $155.5 million worth of Banco Bradesco S.A. (BBD:NYE) stock.

Fisher Asset Management was the most significant shareholder of Banco Bradesco S.A. (BBD:NYE), owning $81.25 million worth of stock.

Last Closing Price: $3.99  See Analysis (BBD:NYE)

 

Conclusion:

Penny stocks are a popular investment option for those who are looking to make quick and easy profits. However, there are risks associated with penny stocks, so be sure to do your research before investing.

In this post, we have outlined the different risks and rewards of buying the best stocks under $5.00. Finally, we have provided a detailed stock analysis of 8 penny stocks that you can invest in. Hope you find this information useful!

Analysts rate AGNC Investment Corp. (AGNC:NSD) with a Buy rating and a $12 target

JP Morgan & Company targets down the AGNC stock price target to $11.5.

Based on the AGNC Stock Forecast from 6 analysts, the average analyst AGNC stock price target is USD 12.61 over the next 12 months. AGNC Investment Corp’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of AGNC stock forecast is Neutral, which is based on 5 positive signals and 5 negative signals. At the last closing, AGNC Investment stock price was USD 9.62AGNC Investment stock price has changed by -1.65% over the past week, -2.75% over the past month and -40.76% over the last year.

 

About AGNC Investment Corp. (AGNC:NSD):

AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. It funds its investments primarily through collateralized borrowings structured as repurchase agreements. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.

 

Most Recent Analyst Ratings for AGNC’s stock:

Target Down JP Morgan & Company USD 11.5 2022-09-06
Target Up Keefe Bruyette Woods Capital Outperform USD 12.5 2022-07-27
Target Down RBC Royalbank Outperform USD 13 2022-07-27
Target Up JP Morgan & Company USD 12.5 2022-07-25
Lowered Keefe Bruyette Woods Capital USD 12 2022-07-19
Upgrades Keefe Bruyette Woods Capital Outperform USD 12.25 » USD 13.25
Target Down Credit Suisse NA USD 12.5 2022-05-16
Target Down RBC Royalbank NA USD 14 2022-05-16
Upgraded by Piper Sandler Neutral » OW  USD 13.5 » USD 13 2022-05-05
Target Lowered by Barclays USD 15 » USD 13 2022-04-27
Downgraded by JP Morgan & Company Overweight » Neutral USD 14.5 » USD 11.5 2022-04-25
Downgraded by Bank of America Securities Buy » Neutral USD 17 » USD 13.75 2022-02-14
Target Raised by RBC Royalbank Outperform USD 17 » USD 18 2021-11-01
Downgraded by JMP Securities Outperform » Market
Perform 2021-10-28
Downgraded by Barclays Overweight » Equal
Weight USD 17 2021-10-27
Downgraded by Piper Sandler Overweight » Neutral USD 17 » USD 16 2021-10-06
Maintains JMP Securities Market Outperform USD 18.5 » USD 17 2021-07-30
Target Lowered by Barclays Overweight USD 18 » USD 17 2021-07-28
Reiterated by BTIG Research Buy USD 18 2021-06-21
Downgrades Keefe Bruyette Woods Market Perform USD 18.25 2021-06-07
Maintains Barclays Overweight USD 17 » USD 18 2021-04-28
Target Raised by JMP  Mkt Outperform USD 15.5 » USD 16.5 2021-01-22
Initiated by Jefferies Financial LLC Hold USD 16 2020-12-14
Initiates Coverage On Piper Sandler Overweight USD 16.5 2020-12-08
Maintains Bank of America Securities Buy USD 14.5 » USD 16 2020-11-25

 

What we like:

Superior total returns:

AGNC stock price has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings:

AGNC stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value:

AGNC stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis:

AGNC stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low Earnings Growth:

AGNC stock price has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth:

AGNC stock price has shown below median revenue growth in the previous 5 years compared to its sector.

Low Dividend Growth:

AGNC stock has shown below median dividend growth in the previous 5 years compared to its sector.