Stock Market

Weed, gold, and electric vehicle chargers. This unlikely trio stands among the best investments that can possibly double your money in the next year. Each stock at under $5 has potential to surge in the coming quarters, creating diversified sub-portfolios of high-beta names.

Many investors want to modify asset allocation strategy based on the market scenario. And so, with the S&P 500 trending higher and the rate hike factor being discounted, now is the time to be relatively aggressive. It’s worth noting that in general, a rally in blue-chip stocks precedes the rally in growth and penny stocks. With the outlook being bullish for the index, low-price stocks are poised to surge higher.

While the initial investment horizon for these stocks is 12 months, some of these growth stocks are worth holding for the next five years. Let’s discuss three stocks under $5 that are potential multibagger names.

Tilray Brands (TLRY)

Source: Ralf Liebhold /

Tilray Brands (NASDAQ:TLRY) stock quickly surged by 40% from undervalued levels in the past month. Strong quarterly numbers were the catalyst for the movement. This positive business outlook could be the beginning TLRY stock’s new trajectory.

In terms of guidance for financial year 2024, Tilray expects to generate positive adjusted free cash flow. With restructuring, cost cutting, and operating leverage, Tilray seems positioned for sustained improvement in EBITDA margin. As financial flexibility improves, TLRY stock may indeed trend higher.

It’s worth noting that Tilray is a market leader in Canada in the recreational cannabis segment. Further, the company has been expanding presence in Europe in the medicinal cannabis business. With the acquisition of brewing companies, Tilray has established a strong strategic infrastructure in the U.S. Given the wide addressable market, the company seems well poised to accelerate growth.


Source: Sundry Photography /

EVgo (NASDAQ:EVGO) stock is trading just above $5 after the recent rally following strong quarterly numbers. This EV charging stock is deeply undervalued and poised for further uptrend in the coming quarters.

For Q2 2023, EVgo reported stellar revenue growth of 457% on a year-on-year basis to $50.6 million. This was driven by aggressive upside in operating stalls. As of Q2 2023, EVgo reported 3,200 stalls in operation or under construction. Therefore, with a deep pipeline, robust revenue growth is expected to continue. A surge is also likely to be driven by strong industry partnerships that include General Motors (NYSE:GM).

Furthermore, the company’s EBITDA losses narrowed to $10.5 million for the quarter. With operating leverage coupled with recurring revenue, margin improvement will likely continue. Potential EBITDA breakeven in the coming quarters is another major catalyst for EVGO stock.

Kinross Gold (KGC)

Source: T. Schneider /

Kinross Gold (NYSE:KGC) stock is among the most undervalued stocks under $5 with potential to double in the next few quarters. KGC stock trades at a forward P/E ratio of 13.3 and offers an attractive dividend yield of 2.42%.

Kinross reported strong numbers for Q2 2023. Production increased by 22% on a year-on-year basis, and Kinross reported operating cash flow of $459.1 million for the quarter. This implies an annualized OCF that’s close to $2 billion.

The company did end the quarter with a liquidity buffer of $1.9 billion. Financial flexibility is therefore high for dividends, share repurchase, and potential acquisitions. Also, Kinross has guided for stable production through 2025. This provides clear free cash flow visibility. Assuming a scenario where gold trends higher, KGC stock seems poised for multibagger returns.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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