[Editor’s note: “5 Strong Buy Stocks Under $5 With Massive Upside Potential” was previously published in October 2019. It has since been updated to include the most relevant information available.]
Investors are constantly looking for stocks that will yield massive returns. That being said, finding these stocks can seem like an overwhelming task. Not to mention it can be expensive. Some of the most well-known names like Berkshire Hathaway (NYSE:BRK.A) and Amazon (NASDAQ:AMZN) can put you out thousands of dollars for just a single share.
However, snapping up stocks with strong long-term growth prospects doesn’t have to cost you your entire savings. Using the TipRanks Stock Screener, I was able to pinpoint five stocks with massive upside potential, all for $5 or less.
Additionally, each has amassed substantial support from Wall Street analysts with “strong buy” consensus ratings. This is based on all of the ratings assigned over the last three months.
With this in mind, let’s take a closer look at these five strong buy stocks primed for huge gains.
Matinas BioPharma (MTNB)
Near 60 cents per share before exploding to a little more than $1.90 per share, Matinas BioPharma (NYSEAMERICAN:MTNB) still looks very promising. Matinas’ lead drug candidate, MAT9001, was designed to treat several cardiovascular and metabolic conditions. However, the biopharma company is on the Street’s radar thanks to its other product candidate.
The rally kicked off last year, but Matinas really caoght fire in October when it announced that it began its Phase 2 EnACT clinical study for its MAT2203 drug in HIV-positive patients with cryptococcal meningitis. Cryptococcal meningitis is a life-threatening fungal infection that is most commonly seen in patients with compromised immune systems.
“Antifungal resistance poses a major threat to the lives of vulnerable immunocompromised patients, and MAT2203 could provide an invaluable oral and safe treatment for severe fungal infections in these patients,” Matinas Chief Development Officer Theresa Matkovits said in a press release.
This development prompted Maxim Group analyst Jason McCarthy to reiterate his “buy” rating and $3 price target, and the stock is more than halfway there already, but there’s still some upside left.
The rest of the Street also has high hopes for MTNB. This strong buy stock has only received “buy” ratings in the last three months, with its $4 average price target suggesting shares could surge 371% over the next 12 months.
Ovid Therapeutics (OVID)
With Ovid Therapeutics (NASDAQ:OVID) receiving six “buy” ratings in just the last five months and boasting a more than 400% upside potential, it’s no wonder investors are getting excited about this biopharma stock. In fact, it’s already topped the $5 mark, but just barely.
The company, which develops treatments for rare neurological disorders such as Angelman syndrome, Fragile X syndrome and rare forms of epilepsy, already has more-than-doubles its stock year-to-date, confirming analysts predicted turnaround.
OVID’s soticlestat drug aimed at reducing seizure frequency looks especially promising in the Endymion OLE trial at 48 weeks. On Sept. 23, the company released data indicating that some patients had experienced frequency reductions of up to 90% after a year in treatment.
Piper Jaffray analyst Tyler Van Buren calls the results both “encouraging” and “exciting,” as he believes the data shows repeat treatment causes the response to deepen. He adds that the value of the drug hasn’t yet been factored into the $2.26 share price. As a result, the analyst reiterated his “buy” rating and $14 price target, implying that Van Buren thinks share prices could soar 567% higher in the next 12 months.
Despite a rocky performance over the last six months, analysts believe cannabis company OrganiGram (NASDAQ:OGI) presents investors with an opportunity to increase their stake in the space at a low cost, $2.36 per share at this writing.
According to its fiscal Q3 earnings release, OGI is looking solid. Its net sales grew 621% to reach $24.8 million CAD in its last quarter. Additionally, if not for a one-time hit to gross margin and elevated operating expenses, OGI would have been profitable on an operating basis. This is important as there was only one other Canadian cannabis producer that posted an operating profit during this timeframe.
With this in mind, Jefferies analyst Ryan Tomkins just gave OGI a ratings boost. He upgraded the stock from a “hold” to a “buy” and set a $6.28 price target. This conveys his confidence in OGI’s ability to climb 67% higher over the next twelve months.
All in all, the rest of the Street takes a bullish stance on OGI. Looking at the analyst consensus breakdown, six “buy” ratings and one “hold” have been published in just the last three months. From these ratings, the average price target is $8.13, indicating 140% upside potential.
Iteris (NASDAQ:ITI) wants to make smarter use of farms, roads and highways. To accomplish this goal, the company collects and analyzes large quantities of data using sensors to monitor and predict traffic and weather conditions. This data is then used to gain actionable insights.
With only “buy” ratings in the last four months, it’s no question that analysts stand firmly behind this strong buy stock. It also doesn’t hurt that its $8 average price target implies a more-than 50% upside potential from the current $4.98 share price.
The company was just awarded a five-year contract with the Colorado Department of Transportation to provide access to hyper-local weather data to support critical road maintenance. This is on top of ITI’s contracts with Florida, South Carolina and the Illinois Department of Transportation as well as its software-as-a-service agreement with KWS to bring environmental intelligence to KWS’s digital farming platform.
All of this led Northland Securities analyst Michael Latimore to reiterate his “buy” rating and $9 price target on Oct. 9. He believes that share prices could skyrocket 78% over the next 12 months.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) designs and manufactures hydrogen fuel cell systems that can be used as a replacement for conventional batteries in equipment and vehicles. Based on its major deployments as well as its year-to-date growth, PLUG could be a long-term winner at more than $3 per share.
The company’s product lineup expansion to include solutions for forklifts has landed it some pretty big customers. These names include the likes of both Walmart (NYSE:WMT) and Amazon. Not to mention PLUG stated that it has seen a 25% reduction in costs for every doubling of units in the field, with management noting that there is a clear path for continued improvement.
All of this has impressed Canaccord Genuity analyst Chip Moore. “Plug Power today offers a proven value proposition (validated most clearly by major deployments with Walmart and Amazon, in our view), providing customers complete solutions inclusive of fueling and aftermarket services (having learned that just producing products is not sufficient to drive market adoption),” he explained. As a result, Moore reiterated his “buy” rating and $4 price target.
Other Wall Street analysts also like what they see. This inclusion on our list of strong buy stocks has only received bullish ratings in the last three months, five to be exact.
TipRanks offers investors the latest insight into eight different sectors by tracking the activity of over 5,000 Wall Street analysts. As of this writing, Maya Sasson did not hold a position in any of the aforementioned securities.