U.S. markets struggled this week, as steep declines in crude oil, some disappointing retail earnings reports and continuing concerns about the Federal Reserve left the major indices in the negative column by week’s end.
Smaller stocks were far from immune, as the Russell 2000 dropped more than 4% for the week. Still, a handful of low-priced smaller companies showed substantial gains.
Here’s a look at five sub-$5 stocks that far exceeded the rest of the market.
Best Stocks Under $5: Sophiris Bio Inc (SPHS)
11/13/15 Closing Price: $2.51 (+195% for the week)
Sophiris Bio Inc (NASDAQ:SPHS) is a biopharmaceutical company developing treatments — currently in clinical-stage trials — for urological diseases.
On Wednesday, SPHS bolted higher after announcing that its Phase 3 drug for prostate treatment met its primary endpoint. SPHS stock was the stock market’s biggest winner this week.
Sophiris’ treatment saw statistically significant improvement in an International Prostate Symptom Score — an important step toward receiving registration with the U.S. Food and Drug Administration.
Best Stocks Under $5: Sypris Solutions, Inc. (SYPR)
11/13/15 Closing Price: $1.92 (+71% for the week)
Sypris Solutions, Inc. (NASDAQ:SYPR) is a Louisville, Kentucky-based company that outsources industrial and electronics services and specialty products for companies in the U.S., Mexico, Denmark and United Kingdom.
After being awarded a contract with Detroit Diesel Corporation last week, this week the company had more good news this week for investors. SYPR announced that its subsidiary, Sypris Technologies, Inc., has been awarded a long-term contract with Volvo AB (ADR) (OTCMKTS:VOLVY) to supply it with axle shafts.
Under the terms of the agreement, SYPR will become a Tier 1 supplier, rather than a Tier 2supplier, as it has been with Volvo for the last decade.
SYPR stock bolted 144% higher intraday on Friday after the announcement, and despite pulling back about half of that, pushed above its 200-day moving average.
Best Stocks Under $5: Roundy’s Inc (RNDY)
11/13/15 Closing Price: $3.57 (+57% for the week)
Roundy’s Inc (NYSE:RNDY) is a retail grocery store chain that operates in the Midwest and is based in Milwaukee.
RNDY stock blistered up this week after the company announced it is being acquired by larger grocery chain Kroger Co (NYSE:KR) for $800 million. RNDY owns 151 stores and 101 pharmacies, which KR will now acquire. Kroger already operates more than 2,600 supermarkets in 34 states under several different brands, and will run Roundy’s as a subsidiary.
Under the terms of the deal, Kroger will purchase all of Roundy’s outstanding shares for $3.60 per share in cash. The board of directors for both companies have already approved the deal.
Best Stocks Under $5: Skyline Medical Inc (SKLN)
11/13/15 Closing Price: $4.50 (+57% for the week)
Skyline Medical Inc (NASDAQ:SKLN) is a medical device manufacturer focused on collecting and disposing fluids in various areas of healthcare.
Last week, SKLN told shareholders that it had begun 12 new trials of its Streamway Fluid Management System in eight different states.
This week, Skyline updated shareholders that they will be introducing the Streamway System in Canada and select European countries, and they are now in the process of filing national stage patent applications for the Streamway system. SKLN already has been through the patent review process by the Patent Cooperation Treaty, and they already have issued a written opinion in regards to all 23 of Skyline’s claims, which will cover 148 different countries.
Best Stocks Under $5: Orion Energy Systems, Inc. (OESX)
11/13/15 Closing Price: $1.96 (+11% for the week)
Orion Energy Systems, Inc. (NASDAQ:OESX) designs, manufactures, and sells energy-efficient management systems for commercial and industrial purposes. Much of their previous work has been affiliated with cold storage and food distribution centers.
This week, Orion was a big winner after announcing they have been awarded a national contract with one of the premier supermarket chains and top 10 global retailers to supply LED lighting for their distribution centers.
The task involves converting and upgrading 29 distribution and cold storage centers from fluorescent to LED lighting, and will generate $12 million to $15 million by 2018.
This news can only help OESX stock, which has been in a long downtrend from $8 a share in early 2014 to a recent low near $1.70.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.