Stocks under $5 can be a good choice for low-budget investors, especially as the new year begins. These stocks are also known as penny stocks. Penny stocks don’t have to be priced at pennies, though some are just that. Penny stocks refer to stocks that generally trade under $5 a share.
When you think of those mythical, rags-to-riches stories of someone striking it big in the stock market, what you’re most likely thinking of is someone who scored it big with stocks under $5.
You never want to sink all of your investment cash into just one basket. That said, the best stocks under $5 can be a good place to do a little value investing and give some growth to your cash. We have gathered the five best stocks under $5 that can give you potential returns in 2022.
Genprex Inc. (GNPX)
When you’re looking for the best stocks under $5 to buy, you’ll likely find a few that have come under serious selling pressure. In this case, Genprex (GNPX) could be one of the best under $5 stocks to watch. Since reaching highs of over $7.70 earlier in 2021, GNPX stock hasn’t had the easiest time recovering this year. However, after touching the 52-week lows, GNPX shares have swiftly bounced back.
Genprex’s gene therapies are designed to address larger patient populations where certain diseases have limited treatment options. In particular, Genprex’s ONCOPREX delivery system is a gene therapy delivery platform used for cancer. It uses nanoparticles to target tumor cells expressing specific proteins. The lead product candidate, REQORSA, is currently under evaluation for non-small cell lung cancer and was given Fast-Track Designation by the FDA in combination with AstraZeneca’s Tagrisso. This is one of the early catalysts helping give GNPX stock a boost this year.
If the outcomes of the phase 1 results of the Acclaim-1 trial for Genprex’s REQORSA Immunogene Therapy comes positive, it will be a great catalyst for GNPX stock once again. In the long-term, if the company goes on to successfully finish the trials and commercialize its REQORSA therapy, GNPX stock could skyrocket.
With that being said, GNPX stock sits around its 52-week lows and is in a high upside position.
Compass Therapeutics (CMPX)
Compass Therapeutics (CMPX) is a clinical-stage biopharmaceutical company. It is known for its proprietary antibody therapeutics intended to engage the immune system to treat both solid tumors and hematological malignancies.
The company has drugged over 40 immune targets and generated a diverse pipeline of monoclonal and multispecific therapeutic candidates. With that, Compass has the potential to transform care for patients with cancer or autoimmune diseases.
CMPX stock after touching $10 earlier in 2021 is back around its mean trading price. The company has made major progress in reaching its corporate goals. Compass during the third quarter addressed a positive outcome of its interim Phase 2a data on its lead program, CTX-009. CTX-009 is a promising novel bispecific antibody therapy with activity across a broad range of solid tumors. In addition, Compass’ CTX-471 continues to advance well in development and has demonstrated encouraging activity as a monotherapy in the post-anti-PD-1/PD-L1 patient population. That space is a particularly high unmet medical need.
We believe that based on its own going projects, Compass holds a great potential to pump high on positive news.
Apart from that, on the financing side, Compass has completed a $125 million public offering and concurrently uplisted Nasdaq. That puts the company in a solid financial position to manage its own going expenses. During the third quarter, the company managed to narrow down its loss from $9.2 million to $6 million.
CMPX seems to be heading in the right direction and can be a decent bet in 2022 among one of the best stocks under $5 to buy.
Rave Restaurant Group (RAVE)
Rave Restaurant (RAVE) together with its subsidiaries, operates and franchises pizza buffet, carry-out (Delco), and express restaurants under the Pizza Inn trademark.
RAVE’s two most famous pizza brands Pizza Inn and Pie Five have been exceptional. Pie Five has generated buzz with consumers using a Chipotle Mexican Grill style offering where customers can build handcrafted pizzas with a high degree of personal customization. Rave is working on the expansion of its pizza franchises. Pizza Inn continues to build on its successful expansion strategy with a new multi-unit franchise agreement in Tennessee and North Carolina.
Rave is still a small company; it generated just over $9 million in revenue in the trailing 12 months. However, it is profitable. Pizza as a category has held up quite well with the pandemic. And Rave had shown some positive momentum in 2019 before the pandemic started. Shares are still trading far below where they were years ago, and the company is going for less than a $25 million market cap right now. That’s not a bad price for a small but profitable pizza franchise.
Despite the ongoing challenges related to the Delta variant, Rave reported a strong first quarter with revenue of $2.6 million.
Rave is increasing sales and profitability for both of its brands. In 2022, we can see investors getting more interest in RAVE stock. So, it can potentially be a good investment if you are looking for the best stocks under $5.
Greenpro Capital (GRNQ)
One of the companies that recently caught attention in the stock market is Greenpro Capital (GRNQ). The company provides financial consulting and corporate services to small and medium-sized businesses primarily in Hong Kong, Malaysia, and China. Greenpro operates in two segments, Service Business and Real Estate Business.
Given the rise of interest in fintech, cryptocurrency, blockchain technology, and the like, GRNQ stock found itself wrapped into the mix. Among other things, the company has placed a focus on strategic investments and business incubation.
Greenpro applied to launch its Low Earth Orbit satellites. For those unfamiliar, ITU is a specialized agency of the United Nations managing space telecommunications.
This milestone came shortly after Greenpro took stakes in two new projects, Link Capital and Samothracec International (ATM Online). Link has built strong ties with governing bodies in Singapore, and specializes in processing and distributing Agarwood products for global sales.
Meanwhile, ATM Online fits more into the mainstream focus of Greenpro as it is a consumer credit platform providing services in the Philippines, Sri Lanka, and ASEAN countries.
Based on these prominent developments, GRNQ remains in our top 5 list of best stocks under $5.
Elevate Credit (ELVT)
Elevate Credit (ELVT) is an online fintech firm. It offers lending services to nonprime borrowers. Historically, this is a risky business, and understandably many investors shy away from it. However, in an economy like this one with high levels of government stimulus and surging wages, conditions are good for lenders. Loan losses are low, and profits are plentiful.
Apart from that if you have good trading capabilities, ELVT stock will give you returns quite often. Elevate has demonstrated more hard data that its model is reliable and strongly profitable.
In the third-quarter results, the company posted strong revenue figures. Elevate posted revenues of $112.84 million for the quarter ended September 2021, surpassing the Zacks Consensus Estimate by 20.09%. This compares to year-ago revenues of $94.16 million. The company has topped consensus revenue estimates two times over the last four quarters.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.09 on $108.3 million in revenues for the coming quarter and -$0.08 on $376.54 million in revenues for the current fiscal year. But, as in the past, we have seen ELVT surpass consensus estimates, if this happens, we can see a rise in stock price. So while looking at the best stock under $5 you can keep an eye on ELVT stock too.