Best Cheap Stocks to Buy Under $5 for Q2 2024

Everyone’s on the lookout for a cheap stock that hits it big. This page picks out our favourite cheap stocks and explains why they have so much potential.
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Updated: Jun 8, 2024
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Our experts have combed through the market to find the best cheap stocks out there. They are all trading below $5 at the time of writing, and here you can find out more about each one as well as the best trading platforms to use to find them.

What are the top cheap stocks to buy?

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The table below ranks our expert picks for the top five cheap stocks for this year. You can find their latest price information through the links in the table, or scroll down to read about each one in more detail.

#Stock symbolCompany nameLearn more
1EVGOEVgoLearn more
2HNSTThe Honest CompanyLearn more
3GRABGrab HoldingsLearn more
4SBRESabre CorporationLearn more
5COMPCompass Inc.Learn more
List chosen by our team of analysts, updated June 2024

1. EVgo (NASDAQ: EVGO)

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  • Market cap: $633 million
  • Dividend yield: N/A
  • 1-year return: -53%
  • Country: USA
  • Stock price: $2

EVGgo is one of the best companies below $5 to invest. While its stock has crashed by over 50% in the past 12 months, it has room to grow in the coming years. 

EVgo is a leading provider of electric vehicle charging infrastructure in the United States, where it operates thousands of chargers. It then makes money whenever people charge their vehicles in its charging networks.

EVgo’s business has been growing. Its revenue jumped from over $17.5 million in 2019 to over $161 million in 2023. Analysts expect that its revenue will grow to over $248 million in 2024 and $350 million in 2025. They are also bullish on the stock, with the average estimate being $5.60, higher than the current $2. 

The company could also benefit from the ongoing incentives from the US government and the fact that its losses have started narrowing. In a recent note, analysts at Benchmark said that the stock could more than double.

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2. The Honest Company (NASDAQ: HNST)

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  • Market cap: $254 million
  • Dividend yield: N/A
  • 1-year return: 59%
  • Country: USA
  • Stock price: $2.58

The Honest Company is another good stock below $5 to invest in. Started by Jessica Alba, the company sells products like diapers, wipes, makeup, and cleaning products through its website. 

Its business has been doing well in the past few years, helped by its strong marketing and repeat customers. Revenue jumped to over $344 million in 2023 while its net profit narrowed to $39.2 million. 

The company has also started to improve its profit margins. Its gross margin rose to 32.3% in the first quarter while its net profit margin improved to minus 6%.

Analysts expect that the company has room to grow, thanks to its large addressable market and the quality of its products. The average estimate is that its revenue will jump to $360 million in 2024 followed by $377 million in 2025. Further, the average stock estimate is that its stock will jump to $4.55 from the current $2.50.

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3. Grab Holdings (NASDAQ: GRAB)

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  • Market cap: $14.5 billion
  • Dividend yield: N/A
  • 1-year return: 13%
  • Country: Indonesia
  • Stock price: $3.67

Grab Holdings is another quality stock below $5 to buy and hold. It is a large Indonesian company that operates an online taxi service in several countries in the Southeast Asian region. It competes with companies like Didi and Uber. 

Grab Holdings’ business has been growing at a rapid rate as more people have embraced these taxi services. It has also thrived as the number of users in the platform has grown over the years. Also, the company has introduced other services like delivery and fintech solutions that are becoming popular among users. 

Revenue jumped to over $2.3 billion in 2023 from $469 million in 2020. The average estimate is that its revenue will grow to over $2.80 billion in 2024 and $3.2 billion in 2025 and this trend will continue. They also expect it to continue growing in the coming years as the Southeast Asian region gains momentum.

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4. Sabre Holdings (NYSE: SBRE)

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  • Market cap: $1.07 billion
  • Dividend yield: N/A
  • 1-year return: -18%
  • Country: USA
  • Stock price: $2.8

Sabre Corporation is not a mainstream company and most people have never heard about it. Yet it is one of the most powerful companies in the travel industry where it provides solutions like bookings and pricing aggregation. It is used by most global airlines and hospitality chains like hotels.

After struggling during the pandemic, Sabre Holdings’ business has started to recover. Revenue moved from $1.3 billion in 2020 to over $2.9 billion in 2023. This trend will continue as the travel industry goes through a new normal.The expectation is that its revenue will soar to $3 billion this year and $3.3 billion in 2025.

Sabre is a good investment for several reasons. First, it is a vital company that operates in a near oligopoly, with the other competitor being Amadeus. Second, it has dependable recurring revenue. Further, analysts expect that its stock will jump to $4 from the current $2.8.

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5. Compass Inc. (NASDAQ: COMP)

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  • Market cap: $1.78 billion
  • Dividend yield: N/A
  • 1-year return: -7.6%
  • Country: USA
  • Stock price: $3.6

Compass Inc. is a leading company in the real estate industry in the United States. In the past few years, the company has become one of the leading brokers in the country, a move that saw its revenue peak at $6.4 billion in 2021.

Compass’s stock price has plunged in the past few years because of higher interest rates, which have hurt home sales. It has also struggled after a court ruling joulted the real estate agency business by changing how agents are paid. 

Still, periods of significant fear offer some of the best opportunities. I believe that Compass has a strategy to change its business model and resume growing its business. 

Additionally, despite the challenges, the management has committed to focus on growth and focusing on profitability. In the first quarter, the company even became free cash flow positive, which is a positive move. The CFO said:

“We have built an operating structure that is appropriate for current market conditions and has positioned us for margin expansion when market conditions improve.”

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Where to buy the best cheap stocks under $5

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The best place to find stocks is always through a broker. These platforms below are the top ones around, and have been reviewed and approved by our financial experts.

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1
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Visa, Mastercard, American Express, Trustly, Apple Pay, Google Pay, Discover, Bank Transfer: SEPA, Bank Transfer: FPS, skrill
Full Regulations:
ASIC, FCA, FSA, MAS, CySEC #250/14

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2
Min. Deposit
$ 0
Best offer
User Score
9.9
TastyTrade allows you to buy and sell U.S. stocks without paying any commission fees.
Whether you’re a short-term trader or a long-term investor, TastyTrade accommodates various investment horizons.
Explore over 8,000 U.S. stocks and consider exchange-traded funds (ETFs) for broader exposure to the market.
Start Trading
Payment Methods:
Wire Transfer, Check, ACH
Full Regulations:
3
Min. Deposit
$ 0
Best offer
User Score
9.9
Allows commission-free trading of individual stocks and over 2,000 ETFs.
TradeStation’s platform supports options, futures, and futures options trading.
Traders benefit from award-winning software with advanced analysis capabilities and customization options.
Start Trading
Payment Methods:
Wire Transfer, Check, ACH
Full Regulations:

What is a cheap stock?

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The cheap stocks on this page all trade at or below $5. These are slightly more expensive than penny stocks, but follow a similar principle. You want to find a stock that’s available at a low cost and that could have the potential for its share price to grow considerably in the future.

Are cheap stocks under $5 a good investment?

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In moderation they can be. Usually there is a flaw or two that has caused the company to be available at such a low price, which means there is some risk involved. If you don’t invest too much in each one, and spread your money around a few different stocks, then they can be a very good investment.

That’s because cheap stocks, like penny stocks, can see big gains in value. If a stock hits it big you can see a return of many times your original investment. You just need to be realistic and comfortable with the idea that not all the stocks you pick are going to be so successful.

Whatever you invest in, you want to stay on top of the latest news to check for anything that might cause the price to change. It’s particularly important when dealing with cheaper, less popular stocks because they can be more volatile and sensitive to new developments. Use the links below to help you.

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Sources & references
Risk disclaimer
Crispus Nyaga
Market Analyst
Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. He’s an experienced analyst with more than 8 years of industry experience.... read more.
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.