Investors often look for affordable stocks that show strong trading activity. Stocks under $5 attract attention because they offer high volume and the chance for quick moves. These stocks are often called low-priced or penny stocks, but many are listed on major exchanges and trade actively every day. In this guide, I’ll share the 10 most active stocks under $5, explain why they are popular, and what makes them stand out.
If you are also interested in broader stock lists, check out Top 100 stocks under $10 or AI stocks under $5 for more ideas.
Why Look at Active Stocks Under $5?
- High Liquidity: Active stocks trade millions of shares daily. This makes it easier to buy and sell.
- Potential Growth: Some companies are small but growing. Their low share price offers room for gains.
- Speculative Opportunities: Traders often use these stocks for short-term gains.
Investing in cheap stocks can be risky, but active ones are usually better than those with little volume. If you are curious about very cheap ideas, see Cheap stocks to buy now under $1.
For a broader view on small investment strategies, you can also explore investing $10 to earn daily.
Top 10 Most Active Stocks Under $5
Here are the most active stocks under $5 based on trading volume and market interest. These stocks are listed on major U.S. exchanges like NASDAQ and NYSE.
1. Sirius XM Holdings Inc. (SIRI)
- Sector: Media / Entertainment
- Why Active: Sirius XM is a leading satellite radio company with millions of subscribers. It often trades over 20 million shares daily.
- Attraction: Investors follow it for its stable revenue and partnerships in cars.
- Price Range: Usually between $3 and $5.
2. Zomedica Corp. (ZOM)
- Sector: Veterinary Health
- Why Active: Zomedica develops animal health solutions, including diagnostic tools. It has strong retail investor interest.
- Attraction: Pet care is a growing industry, and this stock draws speculative buyers.
- Price Range: Around $0.20–$0.50.
3. Sundial Growers Inc. (SNDL)
- Sector: Cannabis
- Why Active: SNDL is one of the most traded cannabis stocks. It consistently shows heavy volume.
- Attraction: U.S. legalization hopes and sector growth keep it in focus.
- Price Range: $1–$2.50.
4. B2Gold Corp. (BTG)
- Sector: Gold Mining
- Why Active: Gold is a safe-haven asset. B2Gold trades heavily when gold prices move.
- Attraction: Low-cost mining operations and strong reserves.
- Price Range: $3–$4.50.
5. Camber Energy Inc. (CEI)
- Sector: Energy / Oil
- Why Active: CEI is popular with retail traders for its volatility.
- Attraction: Moves sharply with oil prices and energy trends.
- Price Range: Under $1.
6. Nokia Corp. (NOK)
- Sector: Telecommunications
- Why Active: Nokia is a global telecom company and a 5G player. It trades millions of shares daily.
- Attraction: Institutional and retail investors both watch this stock.
- Price Range: $3–$5.
7. Transocean Ltd. (RIG)
- Sector: Offshore Drilling
- Why Active: RIG provides offshore drilling services and benefits from oil demand.
- Attraction: Heavy trading volume due to its link with energy markets.
- Price Range: $3–$5.
8. Mullen Automotive Inc. (MULN)
- Sector: Electric Vehicles (EV)
- Why Active: MULN is one of the most discussed penny EV stocks.
- Attraction: Retail investors trade it for speculative opportunities.
- Price Range: Under $1.
9. Tellurian Inc. (TELL)
- Sector: Natural Gas / LNG
- Why Active: Tellurian develops LNG projects in the U.S.
- Attraction: Energy transition trends keep it on traders’ radar.
- Price Range: $1–$2.
10. Hexo Corp. (HEXO)
- Sector: Cannabis
- Why Active: Another cannabis play with strong trading activity.
- Attraction: Frequently mentioned in discussions about cannabis legalization.
- Price Range: Under $1.
How to Choose Active Stocks Under $5
If you want to invest in active cheap stocks, look at:
- Trading Volume: High daily trading volume means easier entry and exit.
- Market Sector: Some sectors like cannabis, EVs, and mining often dominate under $5.
- News Flow: Active stocks usually react strongly to company or industry news.
- Price Trends: Watch for patterns before buying. Cheap does not always mean good value.
Pros and Cons of Active Stocks Under $5
Pros
- Affordable entry price
- High liquidity
- Room for price growth
- Exciting for traders
Cons
- High risk
- Volatility
- Many companies face financial struggles
- Potential for delisting if prices stay too low
Related Stock Lists
If you are building a watchlist, you may also want to read:
If you are interested in income investing, also check monthly income from $50,000 investment.
External Resources on Cheap Stocks
To explore further, you can read:
- 3 Stocks Under $5 to Buy Now – Nasdaq
- 2 Stocks Under $5 Worth Buying – Yahoo Finance
- Top Stocks Under $5 – Benzinga
- Best Cheap Stocks to Buy Now – U.S. News
FAQs
What’s the hottest penny stock right now?
The hottest penny stock at any given time usually depends on market sentiment, breaking news, and trading volume. Stocks in sectors like electric vehicles, biotech, and clean energy often trend because they capture investor interest with innovation and growth potential. For example, EV startups and biotech firms with FDA trial approvals can skyrocket in activity. Traders watch volume spikes and news flow to identify which penny stock is heating up right now.
What are the 10 best penny stocks to buy?
The best 10 penny stocks are typically chosen based on trading volume, growth potential, and industry outlook. Investors often favor companies in renewable energy, biotech, and technology because these areas are expanding. While lists vary, many analysts recommend looking at companies with strong financial backing, innovative products, and steady news coverage. A mix of healthcare, energy, mining, and digital technology penny stocks usually makes up the top 10 watchlists.
Which top 5 stocks to buy today?
The top 5 stocks to buy today depend on your risk profile. For long-term investors, large-cap stocks with steady earnings like Apple, Microsoft, or Amazon often stand out. For growth-seeking investors, emerging companies in AI, EVs, and green energy can be compelling. Meanwhile, traders who prefer penny or cheap stocks may look into active low-priced stocks that show heavy volume. The key is aligning your choice with your investment strategy—growth, income, or speculation.
What are the best 1 dollar stocks to buy?
Stocks trading around $1 are considered high-risk but attractive for speculative investors. The best $1 stocks usually come from industries with strong growth potential, such as cannabis, EV startups, and biotech. These stocks gain attention because even small price moves can create significant percentage gains. However, it’s important to choose $1 stocks listed on major exchanges rather than over-the-counter markets, as they usually offer better liquidity and transparency.
Where to invest $1?
Investing just $1 may seem too small, but digital finance platforms now make it possible through fractional shares, micro-investing apps, and even crypto. You could buy a fraction of a stock like Apple or Tesla, invest in ETFs, or even put it into a micro-savings app that grows over time. While $1 won’t generate big returns, it’s a starting point that builds the investing habit, which is more valuable in the long run.
Which stock is best to buy today under $100?
Many strong companies trade under $100, offering a balance between affordability and growth. Stocks like AMD, Ford, and PayPal often fall within this range and attract both retail and institutional investors. The best choice depends on your focus—tech for innovation, finance for steady growth, or energy for cyclical opportunities. Stocks under $100 give you access to big names without the high entry cost of giants like Amazon or Google.
Is Suzlon good for long term?
Suzlon, an Indian wind energy company, has seen ups and downs. It benefits from the global shift toward renewable energy, which supports its long-term story. However, the company has faced debt challenges and restructuring. For long-term investors, Suzlon could be a play on India’s clean energy expansion, but it comes with risks. Careful analysis of its balance sheet and government energy policies is essential before committing.
Which stock is most profitable now?
Profitability varies across sectors. Currently, tech giants like Microsoft, Nvidia, and Apple dominate profitability charts due to strong demand for AI, cloud computing, and hardware. In energy, companies like ExxonMobil and Chevron remain highly profitable thanks to global oil demand. Profitability should be measured using earnings reports, profit margins, and consistent revenue growth. Investors often prefer companies with sustainable profits over quick short-term gains.
Which PE ratio is good?
A good Price-to-Earnings (PE) ratio depends on the industry. For stable companies in mature sectors, a PE of 15–20 is often considered fair. Growth companies, especially in tech, may trade at much higher PE ratios, sometimes above 30, reflecting future earnings potential. Very low PEs can indicate undervaluation, but they may also signal financial troubles. Comparing a stock’s PE to its industry average is the best way to judge if it’s reasonable.
Which ROE is good to buy stock?
Return on Equity (ROE) measures how effectively a company uses shareholder funds to generate profit. A good ROE is usually above 15%, but this varies by sector. For financials and consumer goods, higher ROE often reflects efficiency and profitability. However, extremely high ROE (above 40%) may signal heavy debt use, which carries risk. Investors should compare ROE with industry peers to make informed decisions.
How to find undervalued stocks?
Finding undervalued stocks requires looking at fundamentals. Investors often use metrics like PE ratio, Price-to-Book ratio, and Free Cash Flow. Screening tools and financial websites allow you to filter stocks that appear cheap compared to peers. Watching insider buying, dividend history, and growth potential also helps. Many undervalued stocks come from sectors temporarily out of favor, giving investors a chance to buy quality companies at a discount.
What is Nvidia’s PE ratio?
Nvidia’s PE ratio changes as its stock price and earnings shift. As of recent reports, Nvidia has traded at a high PE because of massive demand for AI chips and GPUs. Investors often justify the higher PE because Nvidia dominates the AI hardware market and shows explosive revenue growth. To check the exact current PE, investors can visit finance sites like Yahoo Finance or Nasdaq for up-to-date numbers.
Final Thoughts
Active stocks under $5 can be exciting for investors who want affordable opportunities. The list above includes companies from industries such as energy, telecom, cannabis, mining, and electric vehicles. These stocks are popular because of their high trading volume and growth potential.
Still, keep in mind that they carry higher risk than established large-cap stocks. If you invest, use small amounts you can afford to lose, and always research before buying.
If you want to expand your watchlist further, don’t forget to explore Top 100 stocks under $10 and other related lists on low-priced stocks.
