7 top stocks under $5

In a hot market where the popular names can cost hundreds of dollars a share, the real potential may be in stocks that go for less than five bucks.

By Money Staff May 16, 2013 4:04PM
Odyssey Marine Exploration; Sirius XM Radio Copyright Odyssey Marine Exploration; Cindy Ord/Getty ImagesWith the Dow Jones Industrial Average ($INDU) and the S&P 500 Index ($INX) regularly setting new highs, it's enough to make anyone want to jump into the market. But it can be hard to get a foothold in stocks when single shares of popular companies like Google (GOOG) -- which just topped $900 a share -- cost as much as a new refrigerator.

However, as Michael Brush notes, "If you look beyond the household names, you'll find a lot of stocks from solid companies that go for much more modest prices -- say, less than $5 a share. Given that so many of these small companies get overlooked by the experts, here's where you can find bargains ready to jump higher."

Brush reviewed his own holdings and picks from his Brush up on Stocks portfolio to find seven budget-priced stocks with solid potential, like Sirius XM (SIRI) -- with one crucial caveat: "Do not overpay!"

He notes that thinly traded small-cap stocks can be impacted by many outside factors -- including investing columns -- and that it's important to wait for the right price to buy.

"Because the catalysts at most of these companies are still months away, just patiently wait for a retreat if they happen to advance sharply," Brush says.

Click here to see 7 top stocks under $5.

More from MSN Money
MSN Money on Twitter and Facebook

Like us on Facebook: MSN Money and Top Stocks

Follow us on Twitter: @msn_money and @topstocksmsn




0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
279
279 rated 2
471
471 rated 3
714
714 rated 4
642
642 rated 5
604
604 rated 6
614
614 rated 7
450
450 rated 8
303
303 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
BIDUBAIDU Inc10
CITCIT GROUP Inc NEW10
HPQHEWLETT PACKARD CO10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.