With many traders ignoring equities below five dollars, there is serious upside for those willing to take on additional risk. A low stock price alone does not indicate a buy as many companies see thier shares head to zero as they go out of business. The companies on this list list have strong indications for growth -- including insider and institutional buying, revenue growth, and expanding industries.
Not only do lower market capitailzations increase upside, but it is a lot easier for a five dollar stock to double in price than a $500. Companies are also eager to have their shares above the five dollar level and may employ tactics to get there (ie. buy backs) because many funds will not invest in securities below five dollars.
A previous version of this article contained four stocks, but has been updated to include additional companies:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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