It was a solid week on Wall Street, fueled mostly by big earnings reports that helped propel the S&P 500 to a 2%-plus gain for the five-day period.
The market wasn’t quite as risk-on when it came to small-cap stocks, as the Russell 2000 saw just a fractional gain for the week. Still, a number of sub-$5 stocks across a number of sectors managed to do gangbusters.
Here are five of the best sub-$5 stocks that outperformed the rest of the field this week:
Best Stocks Under $5: SmartPros Ltd. (SPRO)
10/23/15 Closing Price: $3.52 (+31% for the week)
SmartPros Ltd. (NASDAQ:SPRO) is a small company that offers accounting and finance education and solutions for finance, legal and insurance companies.
This week, SPRO announced that it has been acquired by Kaplan, Inc., a global education services company, for $16.9 million in cash, or $3.57 a share. SPRO will be going out on top, as that price represents multiyear highs.
Kaplan is a subsidiary of Graham Holdings Co (NYSE:GHC), an education and media company.
Best Stocks Under $5: Higher One Holdings, Inc (ONE)
10/23/15 Closing Price: $2.76 (+34% for the week)
Higher One Holdings, Inc (NYSE:ONE), a company that helps colleges and universities lower admin costs and improve graduation rates, shot higher this week after announcing it has reached an agreement with an affiliate of Leeds Equity Partners to sell its Campus Labs data analytics business for $91 million in cash.
The sale value could possibly be reduced by $5 million to $7 million, depending on working capital adjustments by the end of November when the sale closes.
Campus Labs provides colleges and universities with a software platform to help make decisions on student accredidation and retention.
Best Stocks Under $5: GigOptix Inc (GIG)
10/23/15 Closing Price: $2.42 (+23% for the week)
GigOptix Inc (NYSEMKT:GIG) is a supplier of components for the semiconductor industry that enable information streaming.
On Monday of this week, GIG reported third-quarter earnings that included all-time highs in revenue and profitability. It was the sixth consecutive quarter of increases for the San Jose, California-based company.
Revenue rose 23% to $10.4 million from the same period of 2014.
Best Stocks Under $5: Skyline Corporation (SKY)
10/23/15 Closing Price: $3.50 (+25% for the week)
Skyline Corporation (NYSEMKT:SKY) reported first-quarter earnings early this week, and while SKY posted a net loss, that loss was lower year-over-year.
Skyline bled 10 cents per share, down from 45 cents per share in the first quarter of fiscal 2015. That progress helped push SKY stock through the ceiling this week.
Skyline designs and builds manufactured houses and park models. Earlier this summer, the company hired a new CEO, Richard Florea.
Best Stocks Under $5: MannKind Corporation (MNKD)
10/23/15 Closing Price: $3.62 (+17% for the week)
MNKD was pushed higher this week amid being approved for a dual listing — it’s currently listed on the Nasdaq, and will join the Tel Aviv Stock Exchange as of Oct. 28. MNKD wanted to get the dual listing status because it has several affiliations already in place with Israeli biopharmaceutical companies.
MannKind is struggling with a mountain of debt and weak sales of Afrezza thus far. In addition, partner Sanofi SA (ADR) (NYSE:SNY) has an option in their agreement that could cancel the affiliation coming up in early 2016.
Perhaps that is why MNKD stock has been crushed, dropping from more than $11 per share in June 2014 to its current price in the mid-$3s.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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