Finding the Next Big Winners: 3 Stocks You Can Snag for Under $5
You get what you pay for and that includes stocks under $5. Yeah, I might be starting off on a negative foot but here’s the deal: most securities that are priced this low are that way for a reason. Usually, that reason is not a good one.
Nevertheless, you should avoid dismissing entire categories of securities with a broad stroke. With thousands of publicly traded opportunities available, there are bound to be hidden gems. It’s just simple math, really.
Of course, I can’t guarantee anything. However, these analyst-backed cheapo ideas could be intriguing. Without further ado, here are enticing stocks under $5 to potentially add to your portfolio.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
OrganiGram (OGI)
Source: Ralf Liebhold / Shutterstock.com
Listed under the broader healthcare category, OrganiGram (NASDAQ:OGI), through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. Per its public profile, the company offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers.
Interestingly, in the past 52 weeks, OGI slipped more than 7%. However, that’s really not the end of the story, not by a long shot. Since the beginning of this year, OGI gained nearly 85% of market value. Some of this sentiment could be rising U.S. public support for legalization. If a rescheduling occurs, it could theoretically expand OrganiGram’s total addressable market.
To be fair, OrganiGram’s earnings performances last fiscal year were all over the amp. For the current fiscal year, the company could see revenue of $120.17 million, with a high-side estimate of $122.56 million. In fiscal 2023, management disclosed sales of 161.6 million CAD (about $120 million at the current exchange rate).
Analysts like the legalization narrative apparently, rating OGI a strong buy with a $3.17 price target. Thus, it qualifies as a speculative candidate for stocks under $5.
AdTheorent (ADTH)
Source: weedezign via Shutterstock
Listed under the communication services space, AdTheorent (NASDAQ:ADTH) is a digital media platform. It provides programmatic digital advertising services for advertising agency and brand customers in the U.S., Canada, and internationally. Notably, the company deploys machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers.
In terms of earnings performances, AdTheorent can be hit or miss. For example, in the second quarter, the company posted earnings per share of 9 cents, beating the expected loss per share of 1 cent. However, in Q3, it suffered a loss of 5 cents when experts were calling for a breakeven quarter.
Still, for the current fiscal year, they believe an EPS of 8 cents is in order. That would beat last year’s print of 7 cents. Further, sales could clock in at $190.91 million, beating 2023’s result of $170.81 million.
Covering analysts peg ADTH as a unanimous strong buy with a $4.90 price target. That implies over 48% upside potential. Further, the high-side estimate calls for $7, making AdTheorent a compelling idea for stocks under $5.
Cardiff Oncology (CRDF)
Source: Oleg Ivanov IL / Shutterstock.com
Featured in the healthcare sector under the biotechnology umbrella, Cardiff Oncology (NASDAQ:CRDF) is a clinical-stage specialist developing novel therapies to treat various cancers. Its lead drug candidate is onvansertib, an oral selective Polo-like Kinase 1 Inhibitor to treat a range of solid tumor cancers and KRAS/NRAS-mutated metastatic colorectal and metastatic pancreatic cancer.
Since the start of the year, CRDF gained more than 224%. Naturally, investors just tuning into this opportunity could question whether there might be legs remaining. Looking at its past earnings performances, Cardiff missed in Q1. Back then, it posted a per-share loss of 25 cents against an expected loss of 23 cents. However, it’s been mitigating expected red ink since Q2.
To be fair, Cardiff represents largely a narrative play. For the current fiscal year, experts only see revenue of $240,000, well below last year’s $488,000. That said, the high-side target calls for $770,000 and that may be what the market is responding to.
Analysts rate CRDF a unanimous strong buy with a $10.50 price target. The high-side calls for $14, making Cardiff one of the tempting stocks under $5.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
It doesn’t matter if you have $500 or $5 million. Do this now.
The post Finding the Next Big Winners: 3 Stocks You Can Snag for Under $5 appeared first on InvestorPlace.
