Read along for our picks for the best Nasdaq stocks under 5 dollars to buy now in 2022.
The global economy is gradually ascending, and consumer spending is also experiencing a slow but promising upturn.
This means that some stocks that dipped into the penny stock range might see a rebound soon — though, there are stocks that have seen surprising growth despite the downturn.
If you want to trade stocks under 5 dollars, shares listed on major exchanges, like Nasdaq, could be the most accessible.
This is because stocks listed on major exchanges are usually traded on online brokers, such as Robinhood or Webull.
But what stocks are worth a second look?
Check out our stock picks for the top Nasdaq stocks under $5.
Best Nasdaq Stocks Under 5 Dollars
Energy Focus (NASDAQ: EFOI)
Energy Focus is a lighting product producer that has a strong competitive position thanks to its high-quality products and cutting-edge technology.
And with the global LED lighting market expected to reach $152,442.3 million by 2030, the company’s future looks bright.
Its recent earnings results showcase its success with reported Net Sales of $2.7 million, a sequential increase of 32.5% from last quarter.
Included from that release was its plan to expand into the consumer market by transitioning toward the development of more human-centric lighting tech — according to James Tu, Chairman and CEO of Energy Focus, Inc.
Looking ahead, Energy Focus is well-positioned to capitalize on the growing demand for LED lighting products.
The company’s strong product portfolio and industry-leading technology could continue gaining market share.
It’s benefiting from the growing demand for LED lighting products and has plenty of upside potential.
Energy Focus shares currently trade for under $5, which could make it a great value investment among low-priced stocks.
Boxlight Corporation (NASDAQ: BOXL)
Boxlight Corporation is a technology company that develops, manufactures, and distributes interactive projectors and related products.
The company’s products are used in the education market and include portable and fixed-installation projectors.
Primarily targeting K-12 and higher education, Boxlight offers a range of products, including interactive projectors, 3D printing pens, and software.
The company has experienced consistent growth in recent years. In fact, its last financial report revealed an increase in revenue by a whopping 544% to $61.0 million compared to the year prior.
This was driven by a 756% increase in sales and $51.0 million in customer orders.
The company’s net income also grew significantly during the year, increasing by $0.11 to $0.01.
Given its strong track record of growth and attractive valuation, investors may find Boxlight Corporation an appealing investment at current prices.
Synchronoss Technologies, Inc. (NASDAQ: SNCR)
Synchronoss Technologies, Inc. (NASDAQ: SNCR) is a technology company that provides cloud-based and mobile software solutions.
The company’s offerings include its Synchronoss Cloud Platform, which enables service providers to manage their subscribers and account activations, and its ActivationNow platform, which allows consumers to activate new devices or services with carriers.
After releasing its most recent earnings report, SNCR’s stocks jumped, and it’s for a few good reasons.
First of all, the company reported non-GAAP earnings of $0.09 per share, down from $0.04 per share in the year-ago period.
Synchronoss Technologies also reported billings growth of $69.75 compared to last year’s $68.64 million.
With all this good news, it’s no wonder its stocks jumped 7% following the report’s release.
Overall, Synchronoss is seeing steady growth in its activations and services despite a slow start.
This makes it a company to watch if it continues to grow in the future, especially next year.
Future FinTech Group Inc. (NASDAQ: FTFT)
The company has a market cap of $76.73 million and is priced at just under 5$ per share.
FTFT has seen dramatic growth in recent months, despite a rough 2020, with its stock prices increasing by more than 10% since the beginning of 2021.
The Company recently reported its launch of a UK-based mobile financial app to provide digital banking services to the UK market.
Together with this announcement, it reported the acquisition of Khyber Exchange, further diversifying its fintech footprint.
FTFT offers investors several potential benefits.
Its focus on blockchain and recent expansion to the Metaverse sector could make it a major player in these growing industries.
Additionally, FTFT is already profitable and generates significant revenue.
With solid growth prospects and a low share price, Exela Technologies represents an attractive investment opportunity for anyone looking to get into the fintech sector.
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Fastest Growing Stocks Under $5 Dollars
Pixelworks, Inc. (NASDAQ: PXLW)
Another company currently priced under 5$ and listed on the NASDAQ is Pixelworks, Inc. (PXLW).
The company designs, develops, and markets semiconductor intellectual property (IP) for video processing and display applications.
Its recent products include 4K Ultra HDTVs, HDR displays, and 8K TVs.
Pixelworks also provides video processors and signals processing products for high-end display systems.
Its most recent earnings report showed that its mobile segment revenue increased over five quarters, recording a 3.5x year-over-year growth.
Additionally, its projector segment revenue increased 6% from last quarter,
Pixelworks also announced that Vivo released a new product, the iQOO eight smartphone using Pixelworks’ X5 Pro visual processor.
It ended the quarter with cash and cash equivalents of $66.6 million.
Overall, Pixelworks is a company that is still in the early stages of growth and has shown potential with its recent product releases.
At its current price of under 5$, it could be a solid investment for someone looking to add tech stocks to their portfolio.
Amplitech Group, Inc. (NASDAQ: AMPG)
A technology company that manufactures and distributes products for the commercial and military markets, Amplitech Group Inc.’s offerings include amplifiers, antennas, filters, frequency converters, and related components.
The recent quarterly earnings report detailed an increase in revenue, gaining $1,056,595 compared to $1,024,410 from the last quarter.
It also secured $1.5 million worth of orders from LNA Tech, increasing its sales backlog to a record high of $3.35 million.
As well, with its recent acquisition of Spectrum Semiconductor, CEO Fawad Maqbool said, “This transaction will allow us to more than triple our current annual revenue run rate.”
The company has seen substantial growth over the past few years, and despite this growth, Amplitech Group is still trading at a low price.
This could give investors an opportunity to get in on a high-growth company at a discounted price.
Galera Therapeutics, Inc. (NASDAQ: GRTX)
Galera Therapeutics, Inc. is a clinical-stage biotechnology company that focuses on developing and commercializing therapies to treat cancer.
The company’s lead product candidate is an oral formulation called avasopasem, which is in Phase 3 trials to treat RT-induced severe oral mucositis (SOM).
After taking a plunge last October as a consequence of disappointing test results — it recently announced that they had corrected the error from the contract research organization (CRO).
According to their report, correction to this error resulted in improved p-values and endpoints achieving statistical significance.
This made GRTX’s stock soar by over 118% after the announcement.
Its market capitalization is still small at $71.385 million, and with its recent correction to the study, the stock could continue its upward momentum.
Biotech Stocks on Nasdaq Under 5 Dollars
Dyadic International, Inc. (NASDAQ: DYAI)
Dyadic International, Inc. is a biotechnology company that develops and commercializes technologies to improve the production of proteins for use in human health and industrial applications.
The company’s primary focus is on the development and commercialization of its C1 gene expression platform, which uses fungi to produce proteins for vaccines, therapeutics, diagnostics, and other industrial applications.
In its recent financial report, the company announced that they are continuing to develop their internal and external projects, including its COVID-19 Vaccine Candidate, DYAI-100.
DYAI-100 is currently advancing to its first human clinical trials and is expected to enter Phase 1 in the second half of 2022.
With Covid-19 still lingering, the success of this vaccine could have a significant impact on Dyadic’s stock price.
Dyadic International offers a compelling investment opportunity for investors looking for exposure to the biotech sector with its upcoming clinical trial for DYAI-100 and the existing C1 gene expression platform.
Furthermore, Dyadic International represents a low-risk investment in the biotech space that could offer significant potential as it progresses through its clinical trials.
Daré Bioscience, Inc. (NASDAQ: DARE)
Daré Bioscience, Inc. is a clinical-stage biopharmaceutical company that focuses on developing and commercializing products for women’s health.
The company’s lead product candidate is Xaciatio, a product designed to prevent recurrent bacterial vaginosis (BV) in premenopausal women.
This product recently received the UD FDA approval, giving it three years of market exclusivity.
Daré also has a pipeline of other potential products for women’s health, including contraception and menopause management.
The company’s most recent financial report detailed a $45.6 million cash and investments from $4.7 million last year.
These developments have led to a rise in Daré’s stock price and could lead to more gains in the future as the company ramps up its commercialization efforts.
Given its undervalued stock price and strong pipeline, Daré Bioscience could be one of the best biotech penny stocks out there.
AnPac Bio-Medical Science (NASDAQ: ANPC)
AnPac Bio-Medical Science Co., Ltd. is a medical device company that develops, manufactures, and markets products to treat cancer.
The company’s primary product is the PicoPulse laser therapy system, which treats various forms of cancer.
ANPC is a penny stock and has a market cap of $21.319 million.
The company recently announced a $2.9 million underwritten public offering to fund “clinical development, commercialization and general working capital needs.”
Its financial reports have seen an increase in revenue of 55.3% from last year, with gross profit also increasing by 8.8%.
The company is still in the early stages of development but shows potential as a small-cap medical device play.
So it may be worth keeping an eye on ANPC in case it has a breakout.
Top Stocks to Invest in Under 5 Dollars: Nasdaq
TD Holdings Inc. (NASDAQ: GLG)
GLG is a holding company engaging in commodities trading and supply chain management.
It has a market cap of $62.98 million and an average trading volume of 1,615,850.
The company reported revenue of $54.77 last quarter, up a surprising 697% from last year.
Net loss was $0.72 million last quarter compared to $1.73 million last year.
Early this year, they reported signing an agreement with Yangpu Economic Development Zone to cooperate on a cross-border commodity trading business.
This partnership means the company may be eligible for favorable tax breaks, financial assistance, and rental subsidies.
GLG could be a good buy for under 5$ if it continues to show a history of steady revenue growth.
Nano Dimension Ltd. (NASDAQ: NNDM)
With its subsidiaries, Nano Dimension Ltd. (NNDM) focuses on providing intelligent machines to use in the fabrication of Additively Manufactured Electronics (AME).
Nano Dimension’s 3D printing technology is a unique and powerful way to create electronic devices.
The company recently released the DragonFly IV Pro 3D Printer, the first printer to print multilayer PCBs (printed circuit boards) with copper, polyimide, and silver nanoparticle ink used to manufacture High-Performance Electronic Devices (Hi-PEDs®).
Its recent price movement resulted from its successful quarter, reporting an increase in revenue by 107% compared to last year.
The company ended the quarter with $1,385,391,000 million in cash and equivalents, enough to continue operations for the next two years.
Overall, Nano Dimension Ltd. shows a lot of promise and appears to be undervalued at its current price.
Its 3D printing technology is a unique and powerful way to create electronic devices, likely culminating in increased revenue in the future.
Mind Technology, Inc (NASDAQ: MIND)
MIND Technology, Inc. (NASDAQ: MIND) is a technology company that focuses on designing and manufacturing marine technology products.
The company develops numerous products, including its Seamap units, designed to help military and commercial vessels avoid potential hazards while at sea.
The company’s recent financial report demonstrated an increase in revenue from its Marine Technology Products with a total of $8.3 million in sales, up from $6.8 million for the same period last year.
In addition, MIND Technology has an approximate $10 million sales backlog compared to last year’s $1.7 million.
Most importantly, the company announced that it entered a CRADA (Cooperative Research and Development Agreement) with the US Navy, providing MIND Technology with several key benefits.
At present, MIND Technology is undervalued at its current price.
Overall, MIND Technology has several positive factors influencing the playing field and may be worth taking a closer look at.
Color Star Technology Co., Ltd. (NASDAQ: CSCW)
Color Star Technology Co., Ltd. (CSCW) is an education and entertainment firm that engages in music education and entertainment performances in the US and China.
Lately, the company has shifted its focus to developing its leading platform, the Color Star app, an interactive celebrity platform that offers users a unique experience with their favorite celebrities.
Since the app’s development and reported entry to the metaverse, it has seen significant growth on its user-base, attracting 300,000 registered users.
The app’s revenue since its launch in December 2020 totaled $6.8 million and $2.6 million in gross profit.
This is the first time that the company has enjoyed significant gains like this in the past three years.
As the metaverse industry grows, CSCW is in a great position to capitalize on this trend, given its first-mover advantage and robust development.
CSCW is attractively priced and offers investors substantial possibilities in the coming years.
CPS Technologies Corporation (NASDAQ: CPSH)
CPS Technologies Corporation (NASDAQ: CPSH) is a semiconductor company that focuses on developing and producing power management products.
The company’s products are used in various industries, including automotive, industrial, medical, and telecom.
CPS Technologies has seen year-over-year solid revenue growth, with last quarter’s revenues coming in at $5.5million, up from $4.5 million from the previous year.
This quarter’s net income was also up significantly from the previous year, reaching $2.76 million compared to just $0.23 million in 2016.
It made recent headlines when they announced a record sales booking for this year, worth $37 million.
It was much higher than the combined total of the past two years.
Despite these positive indicators, CPS Technologies stock is priced at just under 5$.
This could allow investors to access a growing company at a discounted price.
Hudson Capital Inc. (NASDAQ: HUSN)
Engaged in the business of providing liquidity and capital to small and mid-cap public companies, with a focus on micro-cap issuers in China, Hudson Capital Inc. also provides merger and acquisition advisory services.
In fact, it recently announced a new merger agreement with Freight App inc, acquiring 100% of the company.
This is where the investors started to focus their attention, and Freight App has been gaining significant profits this year.
The company reported a 103% increase in revenue, double from last year.
With this move, Hudson Capital is looking to increase its liquidity and expand operations into the freight forwarding industry.
Overall, investors may see this as an excellent opportunity to invest in a company rapidly expanding into new markets.
Should You Invest in Penny Stocks?
The answer to this question is not straightforward and depends on several factors, including the individual stock in question, the investor’s risk tolerance, and overall market conditions.
Generally speaking, penny stocks are considered high-risk investments and may be more susceptible to price fluctuations and manipulation.
However, there are also cases where penny stocks can be viable investment options for those willing to take on additional risk.
Even Amazon was trading on the penny stock market for a time.
So don’t let the idea of “cheap stocks” fool you, as some up-and-comers have a chance to breakout.
Investors need to do their research before investing in any stock, regardless of its price — this includes our picks for best stocks on the Nasdaq.
Where to Buy Nasdaq Stocks
The great news about these stocks is that they are listed on the NASDAQ, meaning they are widely available to buy on most major online stock brokerages.
Robinhood: This commission-free stock brokerage offers a wide selection of stocks, including many penny stocks.
One drawback is that you can’t trade OTC stocks on the platform — though, our picks are listed on the NASDAQ, so this isn’t a problem.
Robinhood allows users to buy and sell stocks with just a few taps on their smartphones, making it easy for anyone to get started.
The app also offers real-time market data and insights so that investors can stay informed about the latest news and trends affecting their portfolios.
Additionally, Robinhood has a user-friendly interface that makes tracking your investments efficient and straightforward.
Webull: This brokerage offers commission-free trading of over 5,000 stocks, including many Nasdaq penny stocks.
It is very popular amongst investors for its user-friendly platform and extensive research tools.
With Webull, you can buy penny stocks without paying a commission, and there is no account minimum required.
Nasdaq Stocks Under 5 Dollars: Final Thoughts
Given the state of the economy and the volatility of the markets, penny stocks can be a high-risk investment.
However, there can be serious potential for gain for investors willing to take on that risk.
It is essential to do your own research before investing in any stock, especially penny stocks.
Make sure you understand the company’s business model and financials, as well as the risks involved.
The sixteen stocks listed above represent just a small sample of the many quality NASDAQ stocks under $5.
Best Nasdaq Stocks Under 5 Dollars FAQ
Stay tuned for our answers to the most commonly asked questions about the best Nasdaq stocks Under 5 dollars.
What Are the Best Stocks to Buy Under Five Dollars?
For the best stocks to buy under 5 dollars, we recommend taking a look at our picks for the fastest-growing stocks.
- Pixelworks, Inc. (NASDAQ: PXLW)
- Amplitech Group, Inc. (NASDAQ: AMPG)
- Galera Therapeutics, Inc. (NASDAQ: GRTX)
Do Stocks Go Up When Added to the Nasdaq?
When stocks are added to the Nasdaq it’s possible for the price to go up, as they end up on many more investors’ radar.
That being said, getting listed on the Nasdaq is not a guarantee that the stock price will rise.