With inflation moderating, interest rate cuts on the horizon, and pro-business sentiment fueling optimism, investors are on the hunt for the best cheap stocks to buy now. In particular, stocks under $5 have become a magnet for retail traders and long-term investors alike looking for the next 5x or 10x opportunity.
Below are 10 high-upside plays trading below $5 that analysts and seasoned investors say could explode in 2025—ranging from fintech disruptors to overlooked media gems.
1. SoFi Technologies (NASDAQ: SOFI)
Sector: Fintech | Price: ~$4.50
Why It Could Explode: SoFi continues to gain ground in digital banking, student loan refinancing, and investing—all in a single app. As interest rates stabilize, SoFi’s lending business could reignite, driving revenue growth and margin expansion. Analysts see profitability improving in 2025, making it a potential comeback story.
2. Riot Platforms (NASDAQ: RIOT)
Sector: Crypto Infrastructure | Price: ~$2.70
Why It Could Explode: Bitcoin’s halving in April 2024 set the stage for another bullish cycle. Riot, one of the largest public bitcoin miners in the U.S., stands to benefit from both rising BTC prices and increased transaction fees. If the crypto market surges again in 2025, Riot could move fast—and hard.
3. Palantir Technologies (NYSE: PLTR) (If It Dips)
Sector: Data Analytics & AI | Price Watch: Buy under $5 if correction hits
Why It Could Explode: Palantir is a retail investor darling with a moat in defense contracts and AI infrastructure. While it’s currently above $5, a broad market pullback could bring it back into bargain territory. If that happens, it’s one of the best growth stocks under $5 you’ll want on your radar.
4. Bright Mountain Media Inc. (OTCQB: BMTM)
Sector: Digital Advertising & Media | Price: ~$0.30
Why It Could Explode: This is your wildcard pick — an under-the-radar digital media company reporting 27% revenue growth in 2024 and a major swing to positive EBITDA. Bright Mountain owns a portfolio of publishing, ad tech, and data assets targeting U.S. audiences in high-CPM sectors like healthcare, finance, and legal.
With political ad spend expected to surge during Trump’s first year back in office, platforms like BMTM could be poised for major upside. This stock offers a rare mix of valuation disconnect + improving fundamentals — a classic setup for small-cap explosions.
“Bright Mountain Media has built a strong foundation through its strategic acquisitions and focus on first-party data,” said Douglas Baker, President of OTC PR Group. “In a market hungry for undervalued growth plays, BMTM is positioned to surprise a lot of people in 2025.”
5. Sunworks Inc. (NASDAQ: SUNW)
Sector: Renewable Energy | Price: ~$0.90
Why It Could Explode: Despite volatility, Sunworks is leveraged to federal clean energy incentives and rising solar adoption. Any rebound in the renewable sector, or tailwind from infrastructure spending, could push this battered stock into recovery mode.
6. Avaya Holdings (OTCPK: AVYAQ)
Sector: Communication Software | Price: ~$0.40
Why It Could Explode: After restructuring and emerging from bankruptcy, Avaya has regained focus on enterprise communications and AI-powered contact center tech. Speculative, but a potential turnaround story.
7. Zomedica Corp. (NYSEAMERICAN: ZOM)
Sector: Veterinary Health | Price: ~$0.20
Why It Could Explode: Pet care is a growing market, and Zomedica is developing point-of-care diagnostic tools for veterinarians. It’s a speculative biotech-adjacent play but benefits from rising pet ownership and spending trends.
8. Phunware Inc. (NASDAQ: PHUN)
Sector: Mobile Infrastructure & Political Tech | Price: ~$0.45
Why It Could Explode: Known for its ties to political campaigns, Phunware builds mobile platforms and ad tech tools for audience engagement. As we enter a high-stakes political cycle, this stock could see renewed investor interest.
9. Ideanomics Inc. (NASDAQ: IDEX)
Sector: EV & Fintech | Price: ~$0.15
Why It Could Explode: Heavily shorted and beaten down, but Ideanomics has a portfolio of EV, charging, and fintech subsidiaries. If management can consolidate operations and improve reporting, it could bounce from its microcap lows.
10. Naked Brand Group Ltd. (NASDAQ: NAKD) / Cenntro Electric Group (NASDAQ: CENN)
Sector: EV + Retail Legacy | Price: ~$0.18
Why It Could Explode: After pivoting into EVs via Cenntro, this former retail meme stock still draws attention. High risk, but any success in electric delivery vehicle adoption could make it one of the most unlikely comeback stories of the decade.
What Smart Investors Watch Before a Stock Breaks Out
While low-priced stocks under $5 can offer substantial upside, the key to separating genuine opportunities from dead-end trades lies in watching the right signals—both technical and fundamental.
Unusual Trading Volume
When a microcap suddenly trades at two to five times its average daily volume—especially on days without news—it can signal quiet institutional accumulation or insider buying. This kind of price/volume divergence is often a precursor to major price movement, as sophisticated investors position themselves ahead of the crowd.
Improving EBITDA and Cash Flow
Analysts and experienced investors look for clear financial trends, even in speculative names. A company showing consistent improvements in EBITDA, narrowing losses, or turning cash-flow positive—especially on modest revenue growth—is often executing a turnaround. In the microcap world, that alone can justify a dramatic re-rating.
Sector and Macro Catalysts
Strong breakouts are rarely random. Instead, they tend to follow major catalysts—whether it’s a policy shift, a technology breakthrough, or renewed media attention. Stocks tied to political advertising, cryptocurrency infrastructure, or green energy often move in sync with broader narratives. When these tailwinds align with company fundamentals, the upside can be explosive.
Retail Sentiment and Social Momentum
Monitoring platforms like Reddit, X (formerly Twitter), and FinTwit can provide early insights into emerging investor enthusiasm. A stock gaining traction among retail communities often attracts a wave of short-term momentum—especially when combined with favorable news flow or technical setups. While not a replacement for fundamentals, retail sentiment has become a powerful amplifier for small caps.
Insider Buying and SEC Filings
In companies with low market caps, insider transactions are especially telling. When executives are buying shares on the open market—rather than exercising stock options—it suggests confidence that the current price undervalues future prospects. Monitoring Form 4 filings can provide key clues before broader recognition sets in.
In short, breakouts don’t happen in a vacuum. Investors who track volume, sentiment, fundamentals, and external catalysts are far better positioned to identify the next 5x stock—before it’s on everyone’s radar.
