Best Stocks Under $5 With High Potential

Stocks priced under $5 offer a unique opportunity for traders looking for significant gains without a substantial upfront investment. These stocks are attractive due to their low entry cost and the potential for high returns. However, they come with high risk and volatility, making it essential for traders to conduct thorough research and maintain discipline.

Here’s what traders should look for in penny stocks:

• Financial Health: Strong earnings, manageable debt levels, and positive cash flow.
• Market Potential: Companies operating in growing industries with significant upside.
• Recent News: Developments such as new product launches, partnerships, or earnings reports.
• Trading Volume: Sufficient volume to ensure liquidity and ease of trading.
• Volatility: Stocks that offer trading opportunities due to price fluctuations.

Stocks under $2 can be even better at running — but they’ll test your discipline even more than $5 stocks! These low-price shares don’t belong in portfolios — but they can give you exposure to some of the best opportunities in the stock market. My watchlist of the best penny stocks under $2 has some of the not-for-investing assets I’m watching the closest right now.

Best Stocks Under $5 to Buy in April 2025

To find the best stocks under $5 to buy in April 2025 requires a top-level stock screener. I use the one in StocksToTrade — it has all the tools and customization options that traders like me look for to create hot penny stock watchlists.

Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!

To find watch-worthy penny stocks under $2, I input the following criteria:

• Last Price ≤ $5
• Last Price ≥ $1
• Volume ≥ 100,000
• Number of Trades ≥ 100

When I run this screen and sort by today’s biggest gainers, it gives me the following top quotes…

Top Stocks Under $5 for Investment

You can see how the plan with micro-cap stocks is rarely buy-and-hold…

Trading these speculative stocks should be approached with a clear strategy and an understanding of the risks involved. I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model in this article. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Here’s what I’m watching now:

Grab Holdings Limited [NASDAQ: GRAB]

Grab Holdings Inc is an investment holding company. The Group enables access to transportation, delivery, mobile payment, financial services and enterprise offerings in Southeast Asia through its mobile application (the Grab Platform).

BioVie Inc. [NASDAQ: BIVI]

BioVie Inc is a company developing innovative drug therapies to treat chronic debilitating conditions including liver disease and neurological and neuro-degenerative disorders and certain cancers. The company is currently focused on developing and commercializing BIV201, a novel investigational approach to the treatment of ascites due to chronic liver cirrhosis. BIV201 has the potential to improve the health of thousands of patients suffering from life-threatening complications of liver cirrhosis due to hepatitis, non-alcoholic steatohepatitis and alcoholism.

Amylyx Pharmaceuticals Inc. [NASDAQ: AMLX]

Amylyx Pharmaceuticals Inc is a clinical-stage pharmaceutical company working on developing a novel therapeutic for amyotrophic lateral sclerosis and other neurodegenerative diseases.

B2Gold Corp (Canada) [AMEX: BTG]

B2Gold Corp is an international, low-cost, senior gold mining company. It has three operating open-pit gold mines in Mali, Namibia, and the Philippines and numerous exploration projects across four continents. Other significant assets include the Gramalote and Kiaka gold projects. The company focuses on acquiring and developing interests in mineral properties with a primary focus on gold deposits as gold production forms all its revenue. There is no dependence on a particular purchaser because the gold is sold into a global market. The company’s reportable operating segments include its mining operations and development projects, namely Fekola; Masbate; Otjikoto; other mineral properties; and corporate and other. It generates maximum revenue from the Fekola mine segment in Mali.

Globalstar Inc. [AMEX: GSAT]

Globalstar Inc is a telecommunications company that derives revenue from the provision of mobile satellite services. Mobile satellite services are typically used by customers where existing terrestrial wireline and wireless communications networks are impaired or do not exist. The company provides communications services such as two-way voice and data transmission. In addition, one-way data transmission is also offered. Both services are offered using mobile or fixed devices. The company is an owner of satellite assets. The company generates the vast majority of its revenue within the United States.

Spirit Airlines Inc. [NYSE: SAVE]

Spirit Airlines Inc serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. If needed, a customer can elect for additional options at an extra charge. Flight crews are entirely interchangeable across all aircraft, and maintenance and other support services are simplified due to not having an overly complex fleet. The company has one operating segment, air transportation, owing to its system wide route structure. It may decide to expand its network if a market is underserved or overpriced. The majority of revenue is derived from the United States.

AgEagle Aerial Systems Inc. [AMEX: UAVS]

AgEagle Aerial Systems Inc is a provider of drone imagery data analytics for the precision and sustainable agriculture markets. It designs, produces, distributes, and supports technologically- advanced small unmanned aerial systems (UAVs) that it offers for sale commercially to the precision agriculture industry. The company’s revenue is derived primarily through the sales of drone and drone- related products and services, sensors and related accessories, and software subscriptions.

Features to Look for in Stocks Under $5

When evaluating stocks under $5, certain features can help identify those with high potential. Key metrics and company characteristics can indicate whether a stock is worth adding to your watchlist.

The best stocks to put on your watchlist have a combination of the following attributes…

Trading Volume

High trading volume is crucial for liquidity, allowing traders to enter and exit positions without significant price changes. Stocks with higher trading volumes are less likely to be manipulated and offer more reliable price movements. Consistent volume indicates investor interest and stability in trading patterns.

Using platforms like Nasdaq and NYSE, traders can track volume data to gauge market activity. High-volume stocks provide better opportunities for trading, ensuring that your orders can be executed efficiently. Always check trading volume before making any trades.

Earnings Per Share

Earnings per share (EPS) is a critical indicator of a company’s profitability. Higher EPS values suggest that a company is generating good profits relative to its share price, which can attract more investors. A strong EPS can also indicate financial health and stability, reducing the risk of investment.

Analysts often use EPS to assess a company’s financial performance. Positive earnings growth can drive stock prices higher, providing a solid basis for trading decisions. Consistently positive EPS results can make a stock more appealing, even at a low price.

Growth Potential

Growth is a key factor in stocks under $5. We’re on the cusp of real stocks here — revenues and attracting analyst advice are important! 

Companies with a strong growth outlook see plenty of spikes from a combination of news, new contracts, and things like securing distribution rights. Look for businesses in hot sectors like AI and crypto.

To evaluate growth potential, consider the following:

• Market position
• Industry momentum
• Innovation
• Revenue projections
• Dividends (these are actually bad for traders as they steal value from the stock!)

Management

Effective management is crucial for a company’s success. Strong leadership can drive a company’s growth and navigate through market challenges. Companies with experienced management teams are more likely to achieve their business goals and enhance shareholder value.

Research the background and track record of a company’s management team. Good management often means the kind of sound business decisions that lead to good news, in addition to strong financial performance.

How Much Money Can You Make From Stocks Under $5?

The potential earnings from trading stocks under $5 can be substantial, but they come with high risk. Due to their volatility, these stocks can experience rapid price changes, leading to significant gains if timed correctly. Traders who can navigate these price swings effectively can see impressive returns on their investments. If not, you’d put your money in bonds, ETFs, or other investments that brokers don’t warn you about.

However, it’s essential to manage expectations and understand the risks involved. The same volatility that offers high returns can also result in substantial losses. By staying informed and using strategic trading techniques, you can maximize your profit potential while minimizing risks.

Traders should focus on short-term trades rather than long-term investments. This approach helps capitalize on price movements and take advantage of new information without exposing your portfolio to prolonged risk. Regularly updating your watchlist and staying informed about market trends can improve your chances of success.

It also isn’t a bad idea to drop into one of my webinars!

Frequently Asked Questions

Are Stocks Under $5 Considered Penny Stocks?

Yes, stocks under $5 are generally considered penny stocks. These low-priced stocks are traded on the Nasdaq, NYSE, and OTC markets, and are known for their high volatility. Penny stocks can offer substantial trading opportunities due to their price fluctuations, but they also come with higher risks compared to more stable investments.

Which Stocks Will Give the Highest Return?

Stocks with high growth potential and strong fundamentals are likely to provide the highest returns. Companies in rapidly growing industries like AI and renewable energy often show significant upside. Traders should focus on stocks with positive earnings reports, solid management, and high trading volumes to maximize their return potential.

Which Stock Grows Very Fast?

Stocks in emerging industries with innovative technologies often experience rapid growth. Companies involved in sectors like biotech, tech startups, and renewable energy can see swift increases in their stock prices. Identifying these growth stocks early and monitoring market trends can help traders capitalize on these opportunities.

How Do You Fund a Trading Account?

These days it’s easy enough to use most currencies, credit cards, or any other thing that has some value to make stock purchases!