Many investors prefer to concentrate on low-cost stocks. A stock that trades for $5 or less per share appears to be less expensive than its higher-priced competitors. An investor might buy hundreds of shares of cheaper stocks for the price of one share of Amazon.com (ticker: AMZN) stock. When assessing a potential purchase, it’s true that investors should evaluate the overall market capitalization as well as the nominal share price. However, because many traders prefer low-cost equities, it’s important highlighting the greatest options accessible. When stocks trade for less than $5, it’s usually because the company has run into financial difficulties. If these businesses can turn things around, they will be able to recoup several times their initial investment. The following seven low-cost stocks to buy for under $5 may have what it takes to yield astronomical shareholder returns.
Waitr Holdings (WTRH)
Waitr Holdings is a food delivery company based in the United States. Waitr, unlike its competitors, has concentrated its efforts on smaller cities, where it can more quickly gain market share and lower marketing expenditures. Last year’s delivery growth benefited the corporation significantly. Waitr did, in fact, make a profit, which is unusual in the home delivery industry. Investors are naturally concerned about Waitr’s ability to compete with much larger competitors. That is, however, most likely why the stock is selling at roughly $2. Even as the stay-at-home tailwind diminishes, Waitr continues to boost revenues. Waitr could be a good niche player in the delivery industry, or it could be a takeover target for a larger company.
Grupo Supervielle (SUPV)
Grupo Supervielle is a major financial conglomerate in Argentina. As recently as 2018, shares were trading at $30. Last year, however, the price fell to as low as $1.53 a share as a result of the one-two blow of the recent Argentine economic meltdown and the COVID-19 pandemic. The stock has since recovered to roughly $2.20 and could yet have a long way to go. Supervielle is currently trading at just seven times trailing earnings, making it one of the most affordable companies in terms of both price and value.
Dogness International (DOGZ)
Dogness wants to revolutionize the pet business by bringing the Internet of Things to it. Its main product line caters to the intelligent feeding of cats and dogs. Dogness’ feeding stations contain cameras that can be used to remotely monitor pets, track when they eat, and keep track of how much food is left, among other things. Dogness provides an app that allows customers to track their pets’ habits and ensure that everything is in order. Add-ons such as a smart drinking water dispenser are also available. To be honest, it’s questionable whether this product line will be profitable enough for Dogness to succeed. Dogness lost $7 million on $20 million in revenue last year. Dogness, on the other hand, has inked distribution partnerships with major stores this year, including one with Costco Wholesale Corp. (COST). That could be the turning point in bringing Dogness into profit. Dogness is barking up the correct tree in terms of “meme stock” potential. DOGZ, the ticker symbol, may also appeal to Reddit traders.
