Investing in stocks under $5 can be an enticing prospect for both seasoned investors looking for potential growth opportunities and newcomers seeking to enter the market without a significant initial investment. These stocks, often referred to as penny stocks, can present lucrative opportunities if chosen wisely.
In this article, we’ll explore the top stocks under $5 to consider for investment in 2025. The stocks we’ve picked all faced significant market pressure in the past year but show significant promise for growth going forward.
The 7 best stocks to buy under $5 in 2025:
- Mizuho Financial Group – One of Japan’s largest financial institutions
- Lloyds Banking Group – A major UK-based financial services provider
- Ambev S.A. – A leading Brazilian beverage and brewing company
- Wipro Limited – A global IT consulting and business process services firm
- Banco Bradesco S.A. – One of Brazil’s largest private-sector banks
- Lucid Group – A leading EV car manufacturer
- Hecla Mining Company – The second-largest producer of silver
The 7 best stocks to buy under $5: Examining the top investment opportunities
In the sections below, we are going to examine the best investment opportunities under $5 currently available in the stock market. Please keep in mind that the following selection is the representation of this author’s opinion and should not be treated as investment advice.
1. Mizuho Financial Group – One of Japan’s largest financial institutions
Mizuho Financial Group (MFG) has emerged as a resilient pick among international banking stocks, with a share price that remains accessible under the $5 mark. As one of the world’s top financial institutions, Mizuho offers a broad range of services across retail banking, corporate finance, and asset management, giving it diversified exposure to the Asian and global financial markets.
The bank has shown steady operational performance and continues to benefit from Japan’s monetary policy shifts and digital banking initiatives. For investors looking to diversify into foreign financials with upside potential, Mizuho’s relatively low share price could offer a compelling entry point in 2025.
| Stock Price (YoY Change) | $4.98 (+27.40%) |
|---|---|
| Market Cap | $62.42 billion |
| EPS (YoY Change) | +$2.54 (+19.75) |
| EPS Report Date | December 31, 2024 |
| MFG Price Prediction (1-year) | $ 3.91 (-21.16%) |
2. Lloyds Banking Group – A major UK-based financial services provider
Lloyds Banking Group (LYG) offers investors a way to tap into the UK’s financial sector at a low cost, with shares consistently trading below the $5 threshold. The group has a strong retail banking presence and has been steadily recovering from post-Brexit uncertainties and recent economic pressures.
Lloyds continues to modernize its digital banking services and remains focused on improving operational efficiency. With UK interest rates stabilizing and consumer lending gradually improving, the stock could be positioned for moderate gains through the year.
| Stock Price (YoY Change) | $3.87 (+45.76%) |
|---|---|
| Market Cap | $58.07 billion |
| EPS (YoY Change) | -$0.28 (+1.06%) |
| EPS Report Date | September 30, 2024 |
| LYG Price Prediction (1-year) | $ 3.20 (-17.59%) |
3. Ambev S.A. – A leading Brazilian beverage and brewing company
Ambev S.A. (ABEV) stands out as a budget-friendly beverage stock with strong market penetration across Latin America. Known for producing and distributing popular beer brands like Brahma, Skol, and Antarctica, Ambev also has a growing footprint in soft drinks and non-alcoholic beverages.
As consumer demand in emerging markets rebounds in 2025, Ambev’s expansive distribution network and cost-effective operations offer upside potential. Its under-$5 price tag provides an accessible entry into the global consumer staples sector with consistent dividend potential.
| Stock Price (YoY Change) | $2.53 (+6.32%) |
|---|---|
| Market Cap | $39.72 billion |
| EPS (YoY Change) | -$0.17 (-7.65%) |
| EPS Report Date | December 31, 2024 |
| ABEV Price Prediction (1-year) | $ 2.20 (-13.02%) |
4. Wipro Limited – A global IT consulting and business process services firm
Wipro Limited (WIT) is a leading Indian IT services provider that has maintained a global presence in consulting, cybersecurity, and business process services. With digital transformation accelerating across industries, Wipro’s under-$5 stock offers exposure to the high-growth tech services sector at a discounted price.
The company has focused on expanding its cloud and AI offerings, while also strengthening its client base in North America and Europe. Investors seeking international tech exposure without paying a premium may find Wipro to be an attractive value play in 2025.
| Stock Price (YoY Change) | $2.80 (-48.81%) |
|---|---|
| Market Cap | $29.24 billion |
| EPS (YoY Change) | +$0.15 (+20.83%) |
| EPS Report Date | December 31, 2024 |
| WIT Price Prediction (1-year) | $ 2.35 (-16.49%) |
5. Banco Bradesco S.A. – One of Brazil’s largest private-sector banks
Banco Bradesco S.A. (BBD) is one of Brazil’s most prominent private banks, offering retail, corporate, and insurance services across the country. Trading below $5, the stock provides a low-cost gateway to South America’s financial market.
Bradesco is well-positioned to benefit from improving macroeconomic conditions in Brazil and a potential recovery in consumer credit demand. The bank’s wide customer base and ongoing digital expansion initiatives add to its long-term growth potential.
| Stock Price (YoY Change) | $2.70 (-0.37%) |
|---|---|
| Market Cap | $27.74 billion |
| EPS (YoY Change) | +$0.30 (+12.31%) |
| EPS Report Date | December 31, 2024 |
| BBD Price Prediction (1-year) | $ 2.26 (-16.19%) |
6. Lucid Group – A leading EV car manufacturer
Lucid (LCID), a prominent player in the electric vehicle (EV) industry, has been gaining attention due to its innovative technology and promising growth prospects. Despite fluctuations, Lucid’s stock under $5 presents a potential opportunity for investors interested in the EV market.
The company’s Lucid Air sedan is considered to be one of the most luxurious and technologically advanced EVs on the market, challenging Tesla’s Model S. According to our long-term Lucid stock price prediction, LCID could be worth $21.73 per share by 2050 if it follows the S&P 500’s growth rate.
| Stock Price (YoY Change) | $2.32 (-14.58%) |
|---|---|
| Market Cap | $7.06 billion |
| EPS (YoY Change) | -$1.19 (-3.25%) |
| EPS Report Date | March 31, 2025 |
| LCID Price Prediction (1-year) | $ 2.50 (+6.32%) |
7. Hecla Mining Company – The second-largest producer of silver
Hecla Mining (HL) is a silver and gold mining company that has a strong presence in the United States. The company is also expanding its operations into Mexico and Canada. During the COVID-19 pandemic, the production rate of gold and silver dropped, but has picked up since the lockdowns were lifted.
With both the price of a gold bar and a silver bar increasing, investing in a precious metals mining company such as Hecla could be a good choice to get exposure to the trend without buying the physical metals directly.
| Stock Price (YoY Change) | $4.93 (+0.41%) |
|---|---|
| Market Cap | $3.12 billion |
| EPS (YoY Change) | -$0.05 (-24.23%) |
| EPS Report Date | December 31, 2024 |
| HL Price Prediction (1-year) | $3.44 (-30.89%) |
The bottom line
Investing in stocks under $5 can enable investors to seek high returns, as most companies with stocks trading at that low have a relatively low market capitalization. It is worth noting, however, that such companies are often more likely to fail than the more established and bigger companies, which means there’s more risk associated with investing in sub-$5 stocks.
If you want a more traditional examination of the best stock-buying opportunities, check our list of the best stocks to invest in right now. If you want a list that’s geared toward artificial intelligence companies, check out our selection of the best AI stocks. Finally, if you want to explore a similarly themed investment analysis for slightly cheaper stocks, check the article about the best AI penny stocks.
Source:: 7 Best Stocks to Buy Under $5 in 2025 for Budget-Conscious Investors