Investing in stocks can be a risky venture, but it can also be a lucrative way to grow your wealth over time. When it comes to investing in stocks under $5, it’s essential to keep in mind that these stocks are often associated with small or newer companies that may have more volatile performance than larger, more established companies. The price point should not be the only thing to watch out for, market cap and outstanding shares are huge factors especially when you are looking for the best cheap stocks to buy under 5$.

Do caution to remember that the stock market is impacted by a wide range of factors, including global economic conditions, political events, and company-specific news. When investing in any stocks, conducting your due diligence and considering your financial goals and risk tolerance is critical.

With that said, here at Humbled Budget’s recommendations to be on the lookout for when searching for the best cheap stocks to buy under $5 for 2024:

1. Look for companies with solid fundamentals:

When considering any stock investment, it’s essential to look at the underlying financial health of the company. In particular, we need to pay attention to several factors including revenue growth, profit margins, and debt levels. Companies with strong fundamentals and great CEO leadership are more likely to weather economic downturns and emerge stronger over the long term. 

2. Research industry trends:

Certain industries may be prime for growth in 2024, while others may face challenges. For example, technology and healthcare are both sectors that have potential growth in the coming years, while industries like energy and retail may face more headwinds. With covid many companies in the healthcare field received a huge boom, are they able to sustain that momentum is the question.

3. Keep an eye on macroeconomic trends:

The overall state of the economy can impact the performance of individual stocks. Economy fluctuations such as interest rates, inflation, and consumer spending can all create an impact on the stock market. Therefore, we should keep an eye on economic indicators and trends to help diversify our investment decisions. Rate increases or rate cuts can greatly impact many companies depending on your debt-to-asset ratio so do keep in mind.

With those tips in mind, let’s take a look at a few stocks under 5$ that could be worth considering for 2024. Before we go any further, be sure to read our article on Turbo Debt Reviews, as we’ve got you covered.

Best Cheap Stocks to Buy Under 5$

1. Cleveland-Cliffs Inc. (CLF)

Cleveland-Cliffs is a mining and natural resources company that specializes in iron ore and steel production. The company has seen strong growth in recent years, and its stock price has risen from under $4 in 2020 to around $22 as of May 2023. Cleveland-Cliffs has strong fundamentals, with revenue and earnings growth in each of the last three years. With great leadership and with the rise of natural mines this is a stock to keep on your radar.

2. Beyond Meat Inc. (BYND):

Beyond Meat is a plant-based meat alternative company that has seen significant growth in recent years. The company’s stock price has risen from under $3 in 2020 to around $80 as of May 2023. Beyond Meat is a strong candidate in becoming’s consumer interest in plant-based diets and sustainable food production. This one is a bit more speculative, whether or not they can sustain their moment remains to be unseen. The margins on their products shows if they are able to get more markets this could be a very profitable business.

3. Plug Power Inc. (PLUG):

Plug Power is a provider of hydrogen fuel cell solutions for industrial applications. The company has seen strong growth in recent years, and its stock price has risen from under $2 in 2020 to around $32 as of May 2023. Plug Power is well-positioned to benefit from growing interest in clean energy and sustainable manufacturing processes. It is a race between EV and Hydrogen fuel for the next clean energy, they are expanding across the nation so whether the US adopts it remains in question. It could pay off big if that is the case.

4. Sorrento Therapeutics Inc. (SRNE):

Sorrento Therapeutics is a biopharmaceutical company that specializes in the development of cancer treatments and other therapies. The company’s stock price has risen from under $1 in 2020 to around $8 as of May 2023. Sorrento is well-positioned to benefit from continued growth in the biopharmaceutical industry and has several promising drug candidates in its pipeline.

5. Vaxart Inc. (VXRT):

Vaxart is a clinical-stage biotechnologycompany that focuses on the development of oral vaccines. The company’s stock price has risen from under $1 in 2020 to around $6 as of May 2023. Vaxart is well-positioned to benefit from the growing demand for convenient and effective oral vaccine options, particularly in light of the ongoing COVID-19 pandemic.

6. Sundial Growers Inc. (SNDL):

Sundial Growers is a Canadian cannabis company that specializes in the production of high-quality cannabis products. The company’s stock price has risen from under $1 in 2020 to around $2 as of May 2023. Sundial Growers is well-positioned to benefit from the continued growth of the legal cannabis industry, particularly as more states in the US legalize recreational marijuana.

7. American Airlines Group Inc. (AAL):

American Airlines is one of the largest airlines in the world, and has seen significant challenges in recent years due to the COVID-19 pandemic. However, the company’s stock price has risen from under $1 in 2020 to around $23 as of May 2023 as the airline industry recovers. American Airlines is well-positioned to benefit from increased travel demand as the pandemic subsides and the global economy continues to recover. One thing is forsure, Americans are traveling again and at a high rate.

8. Nokia Corporation (NOK):

Nokia is a multinational telecommunications company that specializes in the production of networking and communications equipment. The company’s stock price has risen from under $3 in 2020 to around $6 as of May 2023. Nokia is well-positioned to benefit from the continued growth of the global telecommunications industry, particularly as 5G technology becomes more widespread.

9. General Electric Company (GE):

General Electric is a multinational conglomerate that operates in a wide range of industries, including aviation, healthcare, and energy. The company’s stock price has risen from under $7 in 2020 to around $14 as of May 2023. General Electric is well-positioned to benefit from the global economic recovery, and has made significant investments in renewable energy and other sustainable technologies.

10. BioCryst Pharmaceuticals Inc. (BCRX):

BioCryst is a biopharmaceutical company that specializes in the development of therapies for rare diseases. The company’s stock price has risen from under $2 in 2020 to around $8 as of May 2023. BioCryst is well-positioned to benefit from continued growth in the biopharmaceutical industry, and has several promising drug candidates in its pipeline.

Conclusion

Overall, investing in stocks that are priced under $5 can offer opportunities for growth and diversification, but it’s crucial to approach any investment with caution and a long-term perspective. By conducting your own research, staying informed on market trends, and considering your own financial goals and risk tolerance, you can make well-informed investment decisions that help you build wealth over time.