London, England, 2nd July 2021, ZEXPRWIRE – Many investors choose to concentrate on low-cost companies. A stock that trades for $5 or less per share appears to be less expensive than its higher-priced competitors. An investor might purchase hundreds of shares of cheaper stocks for the price of one share of Amazon.com (ticker: AMZN) stock. When contemplating a possible acquisition, it’s true that investors should examine the entire market capitalization as well as the nominal share price. However, because many traders prefer low-cost equities, it’s important emphasizing the finest alternatives accessible. When stocks trade for less than $5, it’s usually because the company has run into financial difficulties.
Carter-Williams Analyst explains that if these businesses can turn things around, they will be able to recover several times their initial investment. The following four low-cost stocks to purchase for under $5 may have what it takes to generate astronomical shareholder returns.
- Waitr Holdings (WTRH)
Waitr Holdings is a meal delivery company based in the United States. Waitr, unlike its competitors, has concentrated its efforts on smaller cities, where it can more quickly acquire market share and lower marketing expenses. Last year’s shipping surge benefitted the firm significantly.
Indeed, Waitr made a profit, which is an unusual occurrence in the home delivery industry. Investors are naturally concerned about Waitr’s ability to compete with much larger competitors. That is, however, most likely why the stock is selling at approximately $2. Even as the stay-at-home tailwind diminishes, Waitr continues to boost sales. Waitr might be a good niche player in the delivery sector, or it could be a takeover target for a larger company.
- Grupo Supervielle (SUPV)
Grupo Supervielle is a major financial company in Argentina. As recently as 2018, shares were selling at $30. Last year, however, the price fell to as low as $1.53 a share as a result of the one-two blow of the recent Argentine economic meltdown and the COVID-19 pandemic. The stock has since recovered to approximately $2.20 and might yet have a long way to go. Supervielle is now trading at just seven times trailing earnings, making it one of the most affordable companies in terms of both price and value. From a basic viewpoint, there is also potential. Argentina exports a lot of basic metals, including copper.
Due to the present inflationary wave, the price of these metals has risen dramatically this year. Furthermore, impending elections in Argentina this autumn may weaken the country’s ruling left-wing party, providing a more favourable business environment for Argentine banks in the future.
- Dogness International (DOGZ)
Dogness wants to revolutionise the pet market by bringing the Internet of Things to it. Its main product line caters to the intelligent feeding of cats and dogs. Dogness’ feeding devices feature cameras that can be used to remotely watch pets, track when they eat, and keep track of how much food is left, among other things. Dogness is an app that allows customers to track their pets’ behaviours and ensure that everything is in order. Add-ons such as a smart drinking water dispenser are also available. To be honest, it’s uncertain whether this product line will be profitable enough for Dogness to succeed. Dogness lost $7 million on $20 million in revenue last year. Dogness, on the other hand, has struck distribution deals with major stores this year, including one with Costco Wholesale Corp. (COST). That might be the turning point in bringing Dogness into profit. Dogness is barking up the correct tree in terms of “meme stock” potential. DOGZ, the ticker symbol, may also appeal to Reddit traders.
- Trivago (TRVG)
The majority of equities associated with tourism, vacations, and economic openings have already risen. Trivago, an online travel agency, is yet to join in the fun. Although the price has risen recently, it is still hovering around $3.50 per share. It’s down more than 80% from where it was at its all-time high in 2017. Trivago has always invested extensively in marketing, with its commercials airing on nearly every television channel. Trivago likewise sought to grow worldwide at breakneck speed, and it’s possible that it lost sight of its core markets in the process. In any case, investors were concerned that it would never be profitable. Trivago, on the other hand, was able to cut expenditures as a result of the epidemic. Trivago may be able to utilise last year’s catastrophe as a catapult to get back on track, given the pent-up demand for vacations. Trivago’s initial public offering (IPO) price was $12 in 2017, and the stock went on to trade in the $20s, so there’s lots of upside from the present low share price if the firm can take advantage of the travel boom.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.