If you are a penny stock or small-cap stock trader, then you know it can be rough when you are trading the best stocks under $5
You know what I am trying to say, right? Micro-cap and small-cap stocks are as volatile as bottle rockets and trading them are not for the faint of heart.
And neither are the best stocks under $5…
Now, if you are totally unfamiliar, here is a quick primer: penny stocks can trade on the Over-the-Counter Bulletin Board exchange (OTC), a daily listing of the bid and ask prices for over-the-counter stocks, usually because they are too small to meet exchange-listing requirements.
OTC stocks are less regulated than stocks on the NYSE or Nasdaq, which means it can be difficult to know all the details about the company before you invest.
To be frank, OTC stocks are not required to be transparent and often their press releases are hilarious exaggerations, so don’t believe everything you read.gett
One more thing to know, OTC stocks have less liquidity than exchange-traded securities along with lower trading volume, and larger spreads between the bid price and the ask price.
If we haven’t scared you off yet, it is because you know this: penny stocks and cheap stocks under $5 can mean mammoth returns or it can mean losing everything in minutes—it’s the Wild, Wild West.
So, if you are ready to ride, here are the best five stocks under $5 right now.
Best Stocks Under $5 To Buy Now
Opko Health (NASDAQ: OPK)
Opko Health is a medical company based in Miami, Florida. They make pharmaceutical products as well as medical tests. They are a global company and are active in over 30 countries around the world.
While Opko has many operations in their portfolio, the largest is BioReference Laboratories, which focuses on genetic testing.
Some of Opko’s most successful products include a blood test for prostate cancer as well as a treatment for chemotherapy-induced nausea.
Many investors have been excited about Opko Health stock this year. Their shares shot up by 169 percent over the course of 2020.
Part of this is because BioReference pivoted to focus on COVID-19 PCR testing, which has been in high demand around the country and the world.
Additionally, Opko recently signed a deal regarding RAYALDEE, which is their treatment for stage 3 and 4 kidney disease.
This deal will allow them to market this product in China, Hong Kong, Taiwan, and Macau, which could be a significant stream of revenue for them in the years to come.
It’s important to note that Opko’s most recent earnings report didn’t exactly wow investors. While revenue and sales volumes were up on a year-over-year basis, the company took a significant quarterly loss after having been profitable at the same time last year.
However, this doesn’t mean you should count this health stock out. These losses have been linked to a one-time share abnormality, as well as lower COVID-19 testing volumes.
This presents an opportunity to buy this stock while it’s down slightly from its peak earlier this year.
The rise of the Delta COVID-19 variant could also present new opportunities for Opko’s testing operations, which could improve their revenues moving forward.
Dogness Corp. (NASDAQ: DOGZ)
Dogness Corp. is a pet company based in China. They make a wide variety of high-end products for dogs, cats, and other pets.
Many of Dogness’s products use smart technology, including automatic feeders, water fountains, and toys. They also make high-quality leashes and collars.
While the majority of Dogness’s sales are in China, they do have an international presence. They sell their products online to customers in other parts of Asia as well as Europe, North America, Central America, Australia, and more.
Many people adopted pets during the COVID-19 pandemic, so there has been consistent demand for high-quality pet products.
However, many of these pet owners now have to return to their normal work schedules, giving them less time to spend with their furry friends.
Dogness’s smart pet products ensure that pets get food, water, and playtime, even while their owner is at work.
The Chinese market has been growing consistently, and many international investors have been excited about Chinese stocks like Dogness as a result.
Dogness’s share price has been steadily improving throughout the month of August.
Investors who are interested in the pet care trajectory may find that Dogness is an interesting and affordable pick for their portfolio.
Best Day Trading Stocks Under $5
ZK International Group Co. Ltd. (NASDAQ: ZKIN)
ZK International is another Chinese company that has piqued the interest of international investors.
Historically, ZK International has focused on developing products and solutions for water pipe systems.
However, it’s the company’s subsidiary, XSigma Corp., that is really catching the attention of investors.
XSigma focuses on blockchain technologies and cryptocurrencies. While this is a highly speculative market, it’s also one with a lot of potential.
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The company plans to develop their own tokens and launch their own cryptocurrency exchange in the future.
They’re also partnering with a company called Maxim to launch an NFT exchange. ZK International is hoping to bring these exciting new products to the market in fall 2021.
There’s been plenty of hype around cryptocurrencies over the last several years. It’s no wonder that these new projects have resulted in a spike in ZK International’s stock price.
The company’s most recent earnings reports also showed that ZK International had hit record revenue numbers.
It’s important for investors to know that both crypto companies and Chinese companies can be very volatile. However, if you’re willing to take the risk, ZK International could be a good option for day trading.
See Also: Joel Litman’s Hidden Alpha Review
Biotech Stocks Under $5
Atossa Therapeutics (NASDAQ: ATOS)
Atossa Therapeutics is a biopharmaceutical company based in Seattle. They are currently focusing on developing treatments for breast cancer and COVID-19.
Many other penny stocks in the biotech industry are startups that have a long way to go before their products will reach the market. However, this isn’t the case for Atossa.
The company has been in business since 2008, and both their breast cancer and COVID-19 products are in active trials right now.
Atossa’s COVID-19 treatments have been of particular interest to investors. With the rise of new COVID-19 variants around the world, it has become clear that society will be fighting the virus for years to come.
Atossa currently has two COVID-19 products in development. One is a nasal spray that patients with mild symptoms would use directly after being diagnosed to reduce their chances of developing serious symptoms.
The other is a more intensive therapy that would improve lung function for patients with more serious COVID-19 symptoms.
Investors will want to keep an eye on clinical trial results for all of Atossa’s products, as they will have the most significant effect on the company’s share price in the long run.
Best Tech Stocks Under $5
LiveXLive Media (NASDAQ: LIVX)
LiveXLive Media is a digital media company that focuses on the acquisition, distribution, and monetization of live music, internet radio, and podcasting, among other digital enterprises.
LiveXLive Media is also the force behind Slacker Radio, a moderately popular live music streaming platform.
LiveXLive has had a good past year thanks to its focus on streaming music and podcasts.
The company has taken steps to diversify their operations and draw in new customers. They now have both subscription and pay-per-view models available.
Some artists have started holding in-person concerts again. However, increasing COVID-19 numbers have forced many cities to reinstate COVID-19 restrictions.
This means that there will likely be fewer in-person events over the new few months, and many people will turn to virtual events for entertainment again.
Many consumers have also made music and podcast streaming a part of their daily routine. This is unlikely to change even after pandemic restrictions fully lift.
LiveXLive’s most recent earnings report was exciting for investors. They beat both earnings and revenue estimates, which resulted in a small spike in their share price.
Jiayin Group Inc. (NASDAQ: JFIN)
Like many other hot penny stocks right now, Jiayin Group is a Chinese company that focuses on cryptocurrencies.
In particular, Jiayin Group focuses on NFTs, or non-fungible tokens.
These are essentially collectible pieces of digital art that work similarly to other cryptocurrencies.
There’s been a lot of hype about NFTs recently. There have been reports of multiple high-value NFT sales recently, indicating that these tokens could generate real value in the future.
This excitement has resulted in a significant spike in Jiayin Group’s stock price.
The company’s most recent earnings report was also very promising. Right now, the stock has a very low price-to-earnings ratio, which means it could be undervalued.
NFTs and other cryptos are very speculative, but this could be an interesting pick for investors with a high risk tolerance.
Trivago NV (NASDAQ: TRVG)
Trivago is a Dutch technology company that provides travel deals through their website.
Understandably, this stock struggled during 2020 as a result of pandemic shutdowns.
However, COVID-19 vaccines are now accessible in many parts of the world, which has helped lower case rates. Many vaccinated people are itching to travel again.
As a result, demand for flights, hotels, and other travel-related products is very high right now.
This means there’s plenty of room for Trivago’s stock to grow over the next year.
It may take some time for the company to see results. However, investors who are interested in the travel industry may enjoy this affordable pick.
Also Read: Fast Fortune Club Review
Best Asian Stocks Under $5
Tuniu Corp. (NASDAQ: TOUR)
It’s understandable why many investors have been wary of the travel industry this year.
Pandemic-related shutdowns have grounded flights around the world, and people have been avoiding hotels and restaurants.
However, the Chinese market has been one of the first to start recovering. Tuniu is a Chinese digital travel agency that offers air and rail reservations, car rentals, tour packages, and more.
This could be a good option for investors that are feeling bullish on the travel market and economic recovery in general.
While this company’s share price has fluctuated this year, this is a company with a lot of potential.
The Chinese travel market could grow dramatically over the next decade if the country’s economy continues to boom.
Dividend Stocks Under $5
Telefonica S.A (NYSE: TEF)
If you’re looking for a stock under $5 with a huge dividend yield, this is definitely one to keep in mind. Telefonica stock currently pays a huge 8.83 percent yield.
Telefonica is a communications company based in Spain. They provide wireless service in Europe and Latin America.
Although Telefonica did see a drop in revenue last year, their share price still looks relatively cheap. Right now, they have a price-to-earnings ratio of 2.6, which is extremely low.
This indicates that the stock is fairly affordable given the company’s current financial standing.
There’s plenty of opportunity for growth in this industry. Many people have been relying on their phones for communication more than ever.
With some companies switching to permanent remote work, it’s unlikely that demand for these services will go away.
Best Stocks Under $5: Conclusion
Those are the names we consider hot stocks under $5 across markets right now.
There will be lots of opportunities in the markets ahead but expect volatility.
Did we miss any stocks you are making gains with? Let us know in the comments.
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