5 Cheap Stocks Under $5 Worth Watching
September 2025 Watchlist Edition
Looking for low-priced opportunities in today’s volatile market?
Stocks trading under $5 often come with higher risk — but when backed by solid fundamentals, real revenue, or catalysts for growth, they can offer outsized upside potential.
Below are five sub-$5 stocks that stand out on our radar this month — each with a unique story, real assets, and a path to possible recovery or growth.
1. Ambev S.A. (ABEV) – ~$2.20
Latin America’s Beverage Powerhouse
Why Watch:
Ambev is one of the largest brewers in Latin America, behind iconic brands like Skol, Brahma, and Antarctica. The company continues to deliver steady profits and strong cash flow, even as Brazil navigates persistent inflation.
Catalysts:
Attractive dividend yield near 6%, supported by stable cash generation.
Exposure to emerging market consumption growth as economies recover and incomes rise.
Expansion into premium beverages and non-alcoholic drinks could boost margins.
Risks:
Currency volatility (Brazilian real) may pressure earnings.
Slower consumer spending in Latin America could limit volume growth.
Bottom Line: A steady, income-generating play on emerging market consumption — with dividend appeal and long-term brand value.
2. Hanesbrands (HBI) – ~$3.95
Classic Brand, Turnaround Story
Why Watch:
Hanesbrands owns some of the most recognized apparel names — Hanes, Champion, Playtex — but has faced debt and margin pressures in recent years. Now, management is actively restructuring, cutting costs, and focusing on core profitability.
Catalysts:
Turnaround plan includes debt reduction and supply chain optimization.
Trades at less than 0.3x sales, suggesting deep value if earnings stabilize.
Potential rebound in Champion brand sales as retail demand improves.
Risks:
Weak U.S. retail spending and apparel overstocking could slow progress.
Execution risk — the turnaround depends on consistent margin gains.
Bottom Line: A value stock with brand power — patient investors may benefit if management delivers on its turnaround promises.
3. Altice USA (ATUS) – ~$3.13
Discounted Broadband Provider
Why Watch:
Altice operates a major broadband network across New York, New Jersey, and Connecticut. The company is shifting its focus from legacy cable to higher-margin broadband and digital services.
Catalysts:
Deep discount to book value and peer valuations.
Opportunity for cash flow improvement as capex moderates and pricing stabilizes.
Ongoing network upgrades could improve customer retention.
Risks:
Heavy debt load and competition from fiber and 5G rivals.
Sluggish subscriber growth could limit upside.
Bottom Line: A deep-value play in the broadband space — not without risks, but potential reward if free cash flow turns positive.
4. Globalstar (GSAT) – ~$1.40
Satellite Network with Big-Tech Ties
Why Watch:
Globalstar provides satellite communications and owns valuable mid-band spectrum. The company has partnerships with major tech firms (including Apple) to support emergency connectivity and IoT networks.
Catalysts:
Expanding next-generation satellite + IoT capabilities.
Strategic alliances could unlock new revenue streams.
Government and commercial interest in resilient satellite infrastructure.
Risks:
High capital expenditures and uncertain profitability timeline.
Reliance on a few key partnerships.
Bottom Line: A speculative satellite play with real assets and growing relevance in the IoT and emergency communications era.
5. Gevo (GEVO) – ~$2.06
Clean Fuel Innovator
Why Watch:
Gevo is developing low-carbon fuels for aviation and transport, aligned with global net-zero goals. Its technology converts renewable feedstocks into sustainable aviation fuel (SAF) — a sector poised for explosive growth.
Catalysts:
Strong policy tailwinds from clean energy incentives (U.S. IRA, EU mandates).
Long-term offtake agreements with airlines and logistics firms.
Potential scale-up as demand for SAF accelerates.
Risks:
Still in early commercialization; revenues remain small.
Project delays or cost overruns could impact timelines.
Bottom Line: A high-risk, high-reward bet on the green transition — investors with patience could benefit as clean fuel adoption scales.
The Big Picture
These five names are watchlist candidates, not immediate buys.
They share low valuations, tangible catalysts, and turnaround potential — but also carry meaningful risk, especially with economic uncertainty and rate-sensitive markets.
If you’re considering cheap stocks under $5, remember:
Treat them as speculative positions.
Balance with core holdings like dividend stocks or index ETFs.
Focus on diversification and position sizing.
⚠️ Disclaimer:
This content is for informational purposes only and not financial advice. Always do your own research or consult a licensed financial advisor before investing.