Best stocks to buy under £5 in 2022

Big money can be made from cheap shares priced under £5. This guide picks out five of the top stocks to watch under £5 this year, to help you pick the right ones.
Updated: Sep 23, 2022

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Finding the best companies under £5 is no easy feat. That’s why our experts have done the hard work and picked five of the best cheap stocks for this year. Keep reading to find out more about each company.  

What are the top stocks under £5 to buy?

The table below lists our top picks under £5. You can click each link and find more information on each stock, or continue reading to learn why they have made our list. 

#Stock symbolCompany nameTrade now
1MNMDMind Medicine
2LIVXLiveXLive Media
3OGIOrganigram Holidings
4SOLOElectrameccanica Vehicles Corp
5PXLWPixelworks Inc
List selected by our team of analysts, October 29th 2021

1. Mind Medicine (NASDAQ:MNMD)

New York based Mind Medicine is a leading biotech company developing psychedelic inspired therapies for the treatment of conditions such as anxiety, depression, and addiction, among others. 

Psychedelics like LSD and psilocybin (magic mushrooms) were popular in the 60’s and 70’s with recreational users. However, decades of new research has led scientists to discover the benefits these drugs have in treating certain illnesses. That’s where Mind Medicine comes in. The company is leading the race in the psychedelic space, with a number of therapy programs in development.

A recent expansion of its program saw the addition of MDMA (ecstasy) to treat social anxiety. Like most companies who focus on research, MNMD’s share price will largely be linked to its success or failures in discoveries. Although, with multiple programs in development, our experts believe its share has the potential to move much higher.

2. LiveXLive Media (NASDAQ:LIVX)

LiveXLive is an all-in-one global streaming service offering live music, podcasts, pay per view, video, and audio content. LIVX’s services are available for free, although it does offer a subscription service which removes adverts for users. 

Over 1million customers currently subscribe to LiveXLive’s services in more than 220 countries worldwide and that looks set to continue growing. Partly due to a recent acquisition of podcast provider, Podcast One Digital, who had over 2.25billion downloads in 2020. The company also offers live concert streaming, which suffered during lockdown, but is again gaining traction. 

Compared to its rivals like Spotify and Apple Music, LiveXLive’s stock price is very small. But its well diversified portfolio is positive for investors as the company has many income streams. Its future growth largely depends on increasing its subscriber base, something LIVX has already done well with its acquisition of Podcast One.   

3. Organigram Holdings (NASDAQGS:OGI)

Canada based Organigram Holdings is a provider of high quality, indoor grown cannabis for recreational and medicinal use. Since 2013 it has been selling cannabis buds and oils grown at its state of the art three level growing facility. 

Its share price has been unstable over the last year, mostly due to the price of weed dropping, and lower wholesale volume. It has launched over 50 new products with at least 30 more due this year while also entering the edibles space through acquiring The Edibles and Infusion Corp for CA$21million. 

Earlier in 2021, British American tobacco purchased a 20% stake in OGI for CA$221million. Strong competition in the weed space could make growth difficult for Organigram. However BAT’s investment, and US Federal cannabis laws looking likely to change, puts the company third on our list of best stocks under £5.  

4. Electrameccanica Vehicles Corp (NASDAQ:SOLO)

Electrameccanica is a developer and manufacturer of electric vehicles, headquartered in Vancouver, Canada. At present it has 3 vehicles on offer ranging from $18,000 to $150,000 in price. However, the company has yet to sell any cars but high demand means there is a long waiting list for its vehicles.

It is expected to start commercial deliveries this year, while fulfilling waiting list orders shortly after. The company appears to be confident for future growth after signing a deal with Bosh to build a network of auto repair centers to help customers with maintenance of their flagship Solo EV.

These auto repair centers will initially be located on the western coast of the United States, before spreading country wide. While no sales have been reported yet, shares in SOLO are much lower priced than other EV providers, which makes it a good contender as a growth stock. 

5. Pixelworks Inc (NASDAQ:PXLW)

Taking the last spot on our list is California based semiconductor manufacturer Pixelworks. Set up in 1997 it designs and sells video and pixel processing chips, and applications that enable authentic viewing experiences across all screens, from cinema to smartphones.

It primarily targets the growing smartphone, tablet, projection and streaming markets, with hundreds of patents in place. It is releasing cutting edge video processing technology across many smartphone brands such as ASUS and Oppo, which it says will optimize screens for better gaming and video purposes.  

Recent years have seen its stock price do very little. This year, however, has been better with shares climbing over 100% thanks to a bullish analyst report on the company. Its future largely depends on its success or failure in its tech rollout for smartphone screens. The company is a more of a gamble than others on our list, which is why it takes the last spot. 

Where to buy the best shares under £5

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What is a stock under £5?

Shares that are valued at under £5 are similar to penny stocks. They tend to be cheap for a reason, and it’s sometimes difficult to know why. But with good research it’s possible to find stock that can quickly grow. 

Are shares under £5 a good investment?

They can be good investments, but it depends on a number of factors. Usually a stock under £5 is cheap for a reason, and it’s up to the investor to find out why. There could be some weaknesses in the company, or the market they are operating in could be risky. 

Not all stocks at this price have flaws and investing in the right company can pay huge rewards. It’s a good idea when investing in cheaper shares to allocate a small portion of your portfolio or spread your money over a few different stocks. 

Buying shares for under £5 can be difficult, but big money can be made if a stock does well. It’s always a good idea to keep up with the latest news and developments, especially with smaller companies who are more prone to changes. You can check out the links below with up-to-date company news. 

Latest stock market news

Eli Lilly & Co (NYSE: LLY) is in focus on Thursday after the pharmaceutical giant said the U.S. FDA agreed to a speedy review of Tirzepatide for the treatment of obesity and weight-related comorbidities. Why does that matter? A late-stage clinical trial has already shown “Mounjaro” to be effective…
Conagra Brands Inc (NYSE: CAG) is in the red this morning even after the foods company reported strong results for its fiscal first quarter. Conagra Q1 earnings snapshot Swung to $77.5 million net loss that translates to 16 cents a shareAdjusted EPS was 57 cents as per the…
U.S. banks are scheduled to report their quarterly results next week; ahead of which, Barclays’ Jason Goldman picked Wells Fargo & Co (NYSE: WFC) as his favourite. Wells Fargo stock is more rate-sensitive The multinational financial services company is expected to earn $1.10 this quarter…

Sources & references
Risk disclaimer

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Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.