Penny stocks are not really the stocks to trade. The key to investing in penny stocks is to hold them for a longer time. That’s where these microcap companies can give you massive returns and really make you rich if you want to invest in the best stocks under 5$.
Investors having knowledge of stocks know how to make good money and build enormous wealth. Stocks under $5 can be a great way to exploit new avenues to diversify your portfolio. But for that you have to be patient enough and not only trade in these stocks in the short term.
Ambev (ABEV) is one of the leading Brazilian beverage companies that operate worldwide. Lately, things have been great for the company as it has grown over 26% on a year-over-year basis. In the last 12 months, the diluted EPS has jumped over 80%.
In the recent quarter, the company made strong growth across all its segments. During the third quarter of 2021, the revenues for Ambev soared to $18.5 billion, a stunning improvement of 20.8% from the prior-year period. Moreover, the EBITDA grew by 9.4% driven by commercial momentum.
The company reported all-time high rolling 12 months of consolidated volumes in Q2 2021, the company improved its top-line growth in Q3.
In the coming quarters, the company is focusing on the Latin American beer market, which is expected to grow to almost $125 billion by 2025. The momentum is there and the company is expected to improve results in the coming quarters making it one of the best Stocks under 5$. Hold ABEV stock for a little while and you’ll make money out of it.
Pieris Pharmaceuticals (PIRS)
Pieris Pharmaceuticals is one of the leading biopharma firms that focus on the discovery and development of the Anticalin class of biotherapeutics. The company’s Anticalin drugs serve a range of patients suffering from cancer, anemia, asthma, and other medical conditions with no treatment available at the moment.
Anticalin is a new class of pharmaceuticals. These are proteins that can exploit the biology validated by monoclonal antibodies. For that reason, AstraZeneca has licensed Anticalin molecules from Pieris to develop asthma drugs that can go directly to the lung. Other biotechs that have signed up to collaborate with Pieris include Genentech, which is now part of Roche and Seagen.
Under its existing collaboration agreements, PIRS can make up to $9 billion in milestone payments including royalties. That’s not bad for a micro-cap valued at just over $200 million.
The best thing for the company is its existing collaboration deals are just the beginning. In 2020, the antibody market was worth $146 million. If Pieris is able to grab its new class of proteins as a miniaturized version of antibodies, the company will massively benefit from it.
PIRS stock holds massive potential to boom in the long run so investors must put their glance on it while looking for the best Stocks under 5$.
Western Copper and Gold (WRN)
Western Copper and Gold is a Canadian mining firm focused on its Casino Copper-Gold Project in the Yukon province. The company counts Rio Tinto among its strategic backers. WRN has a solid balance sheet with zero debt.
Western Copper is working on the mine and expects to update its shareholders with a feasibility study later this year. The project contains around 41% copper and 38% gold, along with molybdenum and silver.
WRN’s shares surged from $1.20 to $2.80 last year as copper prices hit multi-year highs. Due to a recent dip in copper and gold, WRN share price has been affected. However, with inflation, gold remains to be a key asset whose demand would rise.
The mining project in Canada’s premier copper-gold mine in the Yukon Territory is one of the most economic greenfield mining projects in the world. This project is providing jobs and business opportunities in the short term. By advancing the Casino Project, it holds a significant potential future benefit to communities and First Nations in the Yukon.
This development certainly makes WRN an exciting penny stock to buy and it is now making it to the list of Best Stocks under 5$.
23andMe Holding (ME)
23andMe Holding operates as consumer genetics and research company. The company has two major segments which include Consumer & Research Services, and Therapeutics.
The company went public via SPAC last year and ultimately reached a high of $13.68 in the middle of the 4th quarter. Since then, the DNA of the market hasn’t been strong. In fact, during the last two and a half months, ME stock has slipped by as much as 70%. That puts it in among the penny stocks with a huge upside and makes it one of the Best Stocks under 5$.
As the company is developing a scientific and therapeutics side, ME has multiple FDA authorizations for genetic health risk reports. The company is working on various drug discovery programs that focus on genetics for oncology and cardiovascular diseases.
In January, the company progressed with its genetic test on a hereditary prostate cancer market and received FDA clearance. 23andMe in collaboration with GlaxoSmithKline plans to work on an immuno-oncology antibody program. The plan is extended through next summer and ME will receive a payment of $50 million for the extension.
ME is working on some exciting projects and the stock holds a decent upside.
Hims & Hers Health (HIMS)
If you’re on the hunt for an exciting name in the stock market today and that too under $5, Hims & Hers Health is the perfect pick. The company has built its brand by arousing customer loyalty. HIMS specializes is designed as a telehealth organization for personalizing the wellness experience for its customers.
Hims and Hers is offering products in vast segments which include sexual health, mental health, dermatology, and even primary care products. The company’s most prominent segment was erectile dysfunction, anxiety, and other disorders. The company has also added more array of segments to its portfolio.
With the recent announcement of a strong financial outlook for 2022, the stock seems bullish at the moment. The company reported full-year revenue growth of 83% year-over-year to $271.9 million. While the quarterly ending member subscriptions grew 95% year-over-year to 609,000.
With the positive developments, HIMS is well on its way to disrupting the market and claiming its share. For the first quarter of 2022, the company expects the revenue to be in the range of $90 million to $93 million. Whereas, for the full year, it expects to report $365 million to $380 million in revenues.
HIMS seems a staggering pick among the best Stocks under 5$