Unveiling 3 Under-$5 Stocks with Massive Potential Unveiling 3 Under-$5 Stocks with Massive Potential

Actionable Trade Ideas

always free

Growth stocks continue to dominate the market, enticing investors to hunt for the last hidden treasures that might yield exponential returns without breaking the bank. Stocks priced under $5, though risky, have historically birthed colossal market giants, reminiscent of the fabled Magnificent Seven.

Against this context, three small-cap stocks stand out for having substantially outperformed their parent Russell 2000 Index (RUT) over the last month while maintaining share prices under $5. Analysts are singing their praises, showering them with β€œStrong Buy” ratings and foretelling further upside in the coming year.

1. SoundHound AI Stock

SoundHound AI (SOUN) is reshaping human-machine interaction with its cutting-edge voice recognition technology. Specializing in natural language processing, the company’s AI solutions aim to elevate conversational experiences across diverse applications.

The recent buzz surrounding SoundHound AI was sparked by Nvidia’s (NVDA) revelation of a $3.7 million stake in the company. Nvidia’s significant investment signifies a bullish outlook on the future of this small AI player.

Despite the recent surge that doubled SOUN stock in the past month, allowing investors to snag shares for under $4 each, the Russell 2000’s modest 2% increase pales in comparison.

SOUN’s latest earnings report showed revenue surpassing expectations but with a wider-than-anticipated loss of $0.09 per share. Looking ahead, the company anticipates turning adjusted EBITDA positive in Q4, with results scheduled for Feb. 29.

xplwvmngsueyav nmwhopiw6zdh0cuvfuzhk9qtizd4v vpzok frdrldtgyloulroefrwhdb9 qd2dylpmrn c xa4yjcjcmbq0nz jfwte4lf5jvg2qyl3kuycvh5nzpoqwh2e8 wv2icyr8ia2de

To propel growth, Soundhound is partnering with industry giants like Jersey Mike’s and White Castle to enhance its AI-based food ordering services, alongside collaborating with Turkish electric vehicle manufacturer Togg on a voice assistant.

All six analysts tracking SOUN have bestowed the stock with a β€œStrong Buy” rating. With a mean price target of $4.43, upside potential exceeds 12% from current levels.

hmetivvvbfrbwjdfm4s1gzi24g zh0jyljh3a2rxaamjvvw9dlonaradiaam0dnwk

2. Beyond Air Stock

Beyond Air (XAIR) aims to revolutionize the healthcare landscape with its innovative inhaled nitric oxide therapy geared towards addressing various respiratory and cardiac conditions. The game-changer? The LungFit platform, a state-of-the-art system delivering nitric oxide gas for patient inhalation.

After a prolonged decline in 2023, XAIR has bounced back in 2024, rallying 25% in the last month, surpassing the RUT index with ease.

erqw cg5vmp4wgvw2sykduvf6 yqhnbpme4jbq1nwwf1b f41rtxsstlexutntu5vb85ptm1hqrgkcpi3hqasnyhkxwspggcqrl01s zqirm29mrh1

In its latest earnings report on Feb. 12, Beyond Air reported a loss of $0.50 per share, surpassing analyst estimates of a $0.61 per share loss. The upbeat bottom-line performance compensated for a revenue miss, driving a surge in the stock price.

All four analysts covering XAIR have granted the stock a β€œStrong Buy” rating, with an average price target of $11.50. With shares trading below $2, that’s a staggering 553% premium from the current value.

cdzkbln0l tsfn6cyrfyakxfcuwkwnpjdrdnpz4igz6xy87wxsewpf3cbz7pjtmj6bts2oldlkbo940yccli

3. Xeris Biopharma Stock

Xeris Biopharma (XERS) is disrupting the pharmaceutical sphere with its focus on developing injectable and infusible solutions.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.