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  7. The Best Stocks Under $5 To Buy In May 2022

The Best Stocks Under $5 To Buy In May 2022

Jenna Gleespen - April 14, 2022

If you’re a penny stock or small-cap stock trader, you know it’s rough trading stocks under $5. There’s a lot of volatility with this investment type, so it can be challenging to find the right opportunities on the stock market. That’s why we’re providing you with our picks for the best stocks under $5 to help kickstart your stock trading research.

Some of these stocks also pay out dividends.

If you’re a new trader unfamiliar with this type of trading, we also have a primer to help get you familiar with penny stocks at the end of our picks.

Follow along for a list of the best cheap stocks under $5 to watch out for.

Best Stocks Under $5 To Buy Now

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Best 5 Dollar Stocks to Watch Out For

Buzzfeed Inc. (NASDAQ: BZFD)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$668M ~$4.88 ~$14.77 ~$3.62 N/A

Buzzfeed is an online media site that covers a wide variety of headlines.

The company strives to promote and inspire what audiences should buy, watch, or obsess over next.

It has five brands specific to certain genres that individuals can plug into.

Buzzfeed’s digital content has reached hundreds of millions of viewers since its inception in 2006.

Brand new to the public sector as the result of a SPAC merger last year, Buzzfeed hit the market at $10 per share.

Although it has dropped steadily since then, things appear to be changing direction as the company finds its new ground.

Time will tell if Buzzfeed can become a long-term stock market winner, but it is certainly putting forth the effort to do so.

Copper Mountain Mining Corp. (OTCMKTS: CPPMF)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~713M CAD ~$3 ~$4.20 ~$2.06 N/A

Copper Mountain Mining Corp. explores, develops, and operates mineral deposits.

The company owns 75% of the Copper Mountain mine in British Columbia, where it produces over 80 million pounds of copper per year.

It also explores two copper deposits in Queensland, Australia, with 100% ownership.

While searching for copper, Copper Mountain also extracts gold and silver.

In a push for sustainability, Copper Mountain achieved an “A” or “Yes” rating on all TSM protocols in 2021.

Copper Mountain Mining’s revenue is up this last quarter alongside operating income.

Share prices have not maintained any growth from a year ago but have seen several ups and downs.

As the company grows its business, share prices might expand as well.

Lottery.com Inc. (NASDAQ: LTRY)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$4.31M ~$2.80 ~$17.50 ~$2.76 N/A

Lottery.com is the lottery personified on the internet.

The company contains mobile and online platforms to allow players from all over the world to purchase legal lottery tickets.

Over 800 different games from over 40 countries line the site.

This leading technology company continues to innovate how the lottery is played while striving to reach new players every day.

Lottery.com does so through strategic partnerships like its recent one with AI media company ICARO.

It doesn’t hurt that Lottery.com’s revenue stream looks solid of late.

With so much momentum in place, betting on Lottery.com could land you the jackpot.

Best Stocks to Buy Under $5 with Potential

Energy Services of America Corp. (NASDAQ: ESOA)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$42M ~$2.60 ~$4.68 ~$1.32 N/A

Energy Services of America serves the mid-Atlantic region of the United States with natural gas, petroleum, solar, sewer, and more.

Founded in 2006, ESOA has its base of operations in Huntington, West Virginia.

The company has four subsidiaries to provide these services to the area.

As it lays pipes to meet the needs of communities, ESOA keeps safety and environmental impact at the forefront of all it does.

ESOA is having a good year so far, benefitting from a recent rise in share price.

In addition, financial numbers surpassed expectations for 2021’s fourth quarter and look to remain strong.

Paysafe Ltd. (NYSE: PSFE)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$2.34M ~$3.23 ~$14.30 ~$2.58 N/A

Paysafe has over 20 years of experience in the payment solutions space.

Its services cover both online and physical payments and everything in between.

The company is flexible enough to accommodate businesses of all different sizes while offering any payment option the venture needs.

Paysafe also stands out as a leader in security, protecting the money flowing through an organization.

In addition, Paysafe works to improve productivity, reduce costs, and develop talent along the way.

Although share prices have been pretty flat, financial numbers from the fourth quarter look really good.

The company saw increases across the board and exceeded expectations for revenue.

Paysafe continues to show its ability in the payment space, even forming a partnership with J.P. Morgan for its core banking needs.

Best Cheap Stocks in Tech

Blackboxstocks Inc. (NASDAQ: BLBX)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$47M ~$3.56 ~$8.0 ~$1.0 N/A

Blackbox Stocks is a tool investors can use to peruse the stock market.

It has a built-in pre- and post-market scanner that provides real-time quotes alongside several news feeds.

There’s also a member chat room where users can discuss investment ideas and share thoughts.

A membership also comes with a boot camp that discusses the basics of trading and how to use the service.

Blackbox Stocks partners with well-known brokerages like ETrade and TD Ameritrade.

Share prices are on the rise after a slow first quarter, looking to break out of penny stock range in the near future.

The company’s revenue stream looks solid even as Blackbox Stocks spends money to get its name out there.

stocks under $5 featured

Pixelworks, Inc. (NASDAQ: PXLW)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$125M ~$2.32 ~$7.90 ~$2.31 N/A

Pixelworks looks to optimize the video experience through several innovative picture quality enhancements.

To do so, the company creates and delivers IP cores, semiconductors, software, and custom ASIC solutions to customers.

Its products are used in recording equipment, projectors, and even mobile devices.

TrueCut Motion is Pixelworks’ latest innovation, having just rolled out earlier in December.

Share prices back down after a rollercoaster of a fall season, having peaked at over $5 per share more than once.

Fourth-quarter financials reveal positive numbers across the board as the company brings in revenue and income.

As video quality keeps increasing, Pixelworks plans to stay at the forefront of the latest technology.

Lightinthebox Holding Co. Ltd. (NYSE: LITB)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$128M ~$1.13 ~$3.32 ~$0.87 N/A

Lightinthebox is a Chinese company that markets budget items all over the world.

The retailer offers clothing, gadgets, and home and garden supplies through its immersive online platform.

Launched in 2007, Lightinthebox is quickly gaining popularity as a cheaper way to find products.

To sweeten the pot, the company even sends purchases directly to a consumer’s door, no matter where they may be — its site even lists shipping to Antarctica.

Although Lightinthebox has suffered a bit at the hands of supply chain issues and regulatory crackdowns, it is still seeing positive gains in revenue and net income.

Its share prices have flatlined again as investors wait to see how regulatory fallout will affect business.

However, this could be the calm before Lightinthebox stock really takes off.

Cheap Dividend Stocks Under $5

ARC Document Solutions Inc. (NYSE: ARC)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$166M ~$3.85 ~$4.18 ~$1.95 5.19%

ARC Document Solutions provides document imaging and graphic production services to its many consumers.

The printing venture has been in business for over 100 years and now services clients from over 170 locations and the internet.

Products include anything from digital prints to physical signage, posters, and banners.

In addition, the company offers technology and enterprise customer solutions.

ARC has seen a steady rise in share price over the last year, increasing over 70% since the spring of 2021.

Revenue continues to rise also as ARC continues to expand its presence.

Ambev ADR Representing One Ord Shs (NYSE: ABEV)

Market Cap Stock Price 52-Week High 52-Week Low Dividend Yield
~$49B ~$3.10 ~$3.95 ~$2.50 0.74%

Ambev is the largest brewer in the Latin American region and one of the largest beer producers in the world.

The company has been headquartered in Brazil since its inception in 1999.

It has a ~$49 billion market capitalization, which is relatively uncommon in the penny stock space, as these low-priced stocks typically represent micro- or small-caps.

Its flagship brews are Skol and Brahma brands of beer, among the ten most consumed in the world.

In addition, Ambev has an assortment of soft drinks and non-carbonated products for sale in 18 countries.

Today, Ambev stands as an independent company, but Anheuser-Busch Inbev controls a majority share of its stock.

Alongside being a producer of top beverages, Ambev is also making strides to be carbon neutral.

Share prices have been up and down over the last year, but financial reports keep coming in strong.

With 23 million shares, this stock sees a lot of trades that play well into its volatility.

Should You Buy Stocks Under $5?

Stocks under $5 can be a great entry point into the trading game, but they might not be for everyone.

Understandably, many investors are not a fan of volatility, so they sidestep stocks trading under $5 altogether.

Fortunately, many penny stocks can be found on major exchanges, and companies have stricter criteria to be listed.

This could, on paper, offset some risk, but these stocks are still very volatile comparatively.

Finding undervalued stocks under $5 could lead to some serious gains.

There are plenty of duds on the penny stock market, though, so do your diligence, and be prepared to see a stock drop.

Another opportunity worth looking into for penny stocks is the oil and gas industry.

Check out the list of our top oil penny stocks if you want to know more.

You could also look into a biopharmaceutical company if you are in the market for more speculative investments.

What You Need to Know about Penny Stocks

Penny stocks can trade on the Over-the-Counter Bulletin Board exchange (OTC), a daily listing of stock prices that are usually too small to meet exchange-listing requirements.

OTC stocks are less regulated than stocks on the NYSE or NASDAQ, which means it can be challenging to know all the details about the company before you invest.

Companies with stocks on the OTC market are not required to be transparent, and their press releases are often exaggerated, so don’t believe everything you read.

Because of this, you might want to start with stocks under $5 that have made their way onto major exchanges like NASDAQ and NYSE.

It’s still essential to do your research, since not even the best stocks under $5 are safe from a significant downturn.

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.

Where to Buy Stocks Under $5

Stocks under $5 tend to dominate more volatile OTC markets where regulations are slim and reports are often exaggerated.

You might want to avoid unnecessary variables and invest in stocks that meet the requirements to be posted on NASDAQ or the NYSE.

Platforms like Robinhood and Webull steer clear of over-the-counter markets in favor of these major exchanges.

Newer traders or those looking for a more streamlined approach to trading will likely benefit from Robinhood’s interface.

Investors who want to dig deeper into these markets to find the next big breakout may wish to use Webull’s more complex search algorithms.

No matter which platform you use, be sure to research a ticker before making a purchase.

Best Stocks Under $5: Conclusion

We feel the tickers above are the hot stocks under $5 across markets right now.

There will be lots of opportunities in the markets ahead but expect volatility.

Want to find more top stocks? Check out our Power Gauge Report review to find out how Chaikin’s Power Gauge system spots hidden gems in the stock market.

Stocks Under $5 FAQ

Check out our answers to some of the most-asked questions about stocks under $5.

What Is the Best Stock to Buy Under $3?

All the stocks on our list fall between the $2 and $5 range.

Copper Mountain Mining and Ambev are currently sitting just under $3 with lots of growth potential.

Picking up either one of these could bring significant returns down the road, but only time will tell.

What Stocks Are Good for Beginners?

Stocks around $5, especially those with high market caps, can make for good picks for beginners.

These stocks have a foundation, see a lot of trade, and the right stocks can grow significantly in short order.

How Do I Find Penny Stocks?

A majority of the penny stocks we recommend are found on more stable markets like NASDAQ and the NYSE.

Platforms such as Robinhood and Webull can help you navigate those markets and find solid tickers to invest in.

What Are the Best Cheap Stocks to Buy Now?

Most of our picks trade on major exchanges, so they do not represent the cheapest stocks to buy now.

If you want to know about some cheap stocks to consider, take a look at some sub-penny stocks to watch out for.

Are Penny Stocks Worth It?

Trading stocks under 5 dollars could be worth it, but this is a riskier investment strategy.

Learning to trade penny stocks usually involves a lot of trial and error, so it might not be profitable until you fall into a rhythm that can reliably spot shares with potential.


Jenna Gleespen is a copywriter specializing in finance and investment finance. Originally from the United States, she now calls London, England home.