3 Stocks Under $5 Ready to Outpace the Market

Stocks to buy

Finding hidden jewels in the stock market ready for explosive development — especially stocks under $5 — is like finding hidden treasure on the ocean floor. Out of all the alternatives, three companies stand out as strong candidates. They are all under $5 and can beat the market.

Conventional hardware sales previously constrained the first one. The company can fly high by adopting the Software as a Service (SaaS) business model. Meanwhile, a merger promises growth with a complete revolution in the Artificial Intelligence of Things (AIoT) space. The second one is a giant in the field of Bitcoin mining that has seen a sharp increase in profitability while continuously increasing its mining capacity.

Not to be overlooked, though, is the third — the biotech lead determined to defeat genetic illnesses. The company’s OCU400 is a revolutionary treatment for Leber congenital amaurosis (LCA) and retinitis pigmentosa (RP). This is rewriting the future of gene therapy. Read more to discover the fundamental potential of these undervalued stocks.

Stocks Under $5: PowerFleet (PWFL)

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PowerFleet’s (NASDAQ:PWFL) potential for quick value increase is supported by its effective transition to a SaaS-centric business model. In Q4 2023, PowerFleet delivered a solid surge in service revenue, hitting $21.7 million, a 16% year-over-year (YOY) boost on a constant currency basis. PowerFleet’s development trajectory prioritizes recurring income sources above one-time product purchases. Moreover, this shows a sharp implementation of its SaaS-centric approach.

In addition, service revenue accounted for 63% of overall revenue in 2023 instead of 58% in 2022. This highlights how progressive PowerFleet’s transformation initiatives were. The firm has diversified its income streams and lowered its reliance on hardware sales, as seen in the trend towards a larger percentage of service revenue.

Furthermore, PowerFleet has a transformative opportunity with the impending merger with MiX Telematics, which may boost its size, penetrate new markets, and create value for investors. The merger may have a revolutionary effect, as seen by the projected rise in training revenue from $134 million to over $280 million and the combined EBITDA from $7 million to $40 million. Overall, PowerFleet can take advantage of growth potential in the AIoT SaaS area, optimize operations, and harness synergies by joining forces with MiX Telematics.

Bitfarms (BITF)

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The hashrate growth of Bitfarms (NASDAQ:BITF) indicates that it has continuously increased its mining capacity. The company’s hashrate grew from 6.1 EH/s in Q3 2023 to 6.5 EH/s in Q4 2023, a 7% YOY increase.

The introduction of new mining equipment facilitates this growth. In mid-February 2024, for example, installing 12 Bitmain T21 miners boosted performance and exceeded manufacturer specs. Significant upgrades were also done to already-existing facilities, such as Rio Cuarto in Argentina. This facility now has 200 Bitmain S19j Pro+ Antminers and 600 MicroBT M50 WhatsMiners installed. 

Additionally, Bitfarm’s development potential is mostly derived from its capability to increase its mining capacity continuously. Bitfarms may take advantage of the increasing demand for Bitcoin mining and maximize operational performance by putting additional miners into service and improving already-existing facilities.

Finally, gross mining profit uplifted from $13 million and 38% in Q3 to $23 million and a gross mining margin of 52% in Q4 2023. The boosted mining activity and rising Bitcoin (BTC-USD) prices are the main drivers of income growth. Overall, the company has an operational edge and sharp cost management techniques.

Ocugen (OCGN)

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Ocugen’s (NASDAQ:OCGN) clinical efficacy of OCU400 is a vital value growth fundamental. Promising outcomes were observed in individuals with RP and LCA in Ocugen’s OCU400 Phase 1/2 trial. Twelve participants, in particular, completed at least a six-month follow-up for the research. In terms of Best-Corrected Visual Acuity (BCVA), Low-Luminance Visual Acuity (LLVA), or Multi-Luminance Mobility Testing (MLMT) scores from baseline, 83% of these participants showed stability or improvement.

Moreover, OCU400’s ability to function well despite diverse genetic alterations demonstrated its gene-agnostic characteristic. The 86% improvement rate in MLMT scores among patients with the RHO gene mutation proved this. In addition, the research revealed that OCU400 may treat several genetic mutations with a single product, making it a more effective method than conventional gene treatments.

Finally, the large proportion of participants exhibiting stability or improvement in their BCVA, LLVA, and MLMT scores signifies OCU400’s therapeutic edge. The substantial improvement in MLMT scores among participants with the RHO gene mutation further supports OCU400’s gene-agnostic mechanism and suggests that it may be able to address a variety of genetic alterations linked to RP and LCA.

On the date of publication, Yiannis Zourmpanos 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 InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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