3 Top Stocks Trading Under $5 a Share
By: Devidson Louis
Tags: Stock Market Tips, Entrepreneurship, Stocks, Entrepreneur, Stock Market

Not all investors are able to purchase stocks, so they are searching for companies trading in stock at lower per-share rates. Okay, some make sense of this strategy. However, investors should be mindful of the risks associated with targeting cheap stocks.

Small and mid-cap stocks are typically companies with shares traded under 5 dollars, and these tend to be newer companies with less diversification of their operations and profits. As a consequence, it is disproportionately unprofitable, resulting in greater volatility in operations and higher share prices.

Recent reforms to the stock market rules have provided an alternative, and a large number of brokerage platforms now have fractional stocks that allow investors to easily buy an ETF share with any level of fund (even under $5). This has been a perfect way to diversify or to buy for investors who cannot sunk vast amounts of money into the stock market.

Still, stocks trading under $5 a share can be great for investors looking for under-the-radar opportunities or those who want to get in at the ground floor of a rapid growth story. Below are three of the more interesting ones on the stock market now.

1. OPKO health

OPKO Health Business (NASDAQ:OPK) runs a clinical and pharmaceutical industry. BioReference Laboratories is a pioneer in the United States and 29 other countries of the diagnostic laboratory service provider. The laboratories include research with a particularly strong oncological presence for a variety of diseases and problems with health. OPKO is now selling a prescription drug called Rayaldee used in advanced kidney disease treatment.

In the last decade OKPO was not profitable, and sales in 2018 and 2019 have decreased. The business has, however, reached the highest level of trailing 12-month revenue since 2016, and analysts expect profitability for the full year 2021. Growing sales were powered by diagnostic tests in many European countries related to COVID-19 and the approvals from Rayaldee. OPKO has a fair P/E ratio of 30.3 and just 1.88 price-to-book trading, so this turn-around story is a positive one if things go well next year.

2. Antares Pharma

A pharmaceutical firm specializing in injection devices, oral tablets and topical gels is Antares Pharma, which focuses on prescription products for distribution (NASDAQ:ATRS). These delivery technologies enhance the safety and efficacy of other companies, particularly in the fields of rheumatology, urology, endocrinology, and neurology, developing pharmaceutical products.

Antares is a high-growth business that has recently been profitable. Sales for the 12 months to go are around three times higher than in the full year, and estimates are expected to rise by more than 25% next year. Xyoxsted and generic EpiPen are main drivers of development and profitability in the short term by partner Teva Pharmaceutical Industries. Investors who have been suspicious about the management’s ability to earn money are particularly important in the provision of income. The trading of shares has a very interesting 14.1 P/E ratio, which is not usual for a stock with this current market growth potential.

3. Fluent

Fluent Inc. (NASDAQ:FLNT) provides customers in various sectors in the United States and internationally with digital marketing and customer acquisition services. In recent years the company has experienced remarkable growth, with an annual revenue growth of almost 15% since 2016. In spite of the economic disruptions of COVID-19 challenges, Fluent’s revenues of the third quarter grew by 21 per cent year after year, offering a significant impetus for overall growth in its media and entertainment division.

Especially in order to make good profits for the first time in 2020, Fluent is on track. The assessment of growth enterprises is always difficult until they make a profit, since most methods of evaluation depend on some kind of profit. It is not always clear whether a business model is unlikely to yield net profits or whether a company spends wisely rather than takes profits for potential growth. Fluent in this case has shown that it can produce positive net income at its current level and is still in an exciting phase of growth.

Fluent trading in shares at a forward P/E ratio of 13.7, 14 business values to EBITDA and 1.4 rates to book. All these measurements are very cheap, particularly for a company with the expected growth of Fluent.