What are good stocks under $5
9/16/2025 06:25pm
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The deep research logic is organized as follows:
Okay, let's tackle this question about finding good stocks under $5. The user is looking for undervalued opportunities, so I need to focus on the data provided in the references. First, I'll check the stock list from Reference 1. There are 10 stocks listed with closing prices under $5, P/E ratios below 15, and dividend yields over 2%.
Starting with EPIX (ESSA Pharma), the stock is priced at $0.19, which is super cheap. The P/E ratio is negative, which might be a red flag, but the dividend yield is 878.84%—that's insanely high. However, the company is involved in a merger and has faced legal issues, which could be risky. The quantitative recommendation score is low at 1.12, so maybe not the best pick despite the high yield.
Next, BRFS (BRF) is at $3.94 with a P/E of 9.45 and a 3.18% dividend. The company is merging with Marfrig, which was approved without restrictions. That's positive news, and the stock has a decent yield. The recommendation score is 0.85, which is better than EPIX but still not great. The merger might bring some stability, though.
DLNG (Dynagas LNG) is priced at $3.8 with a P/E of 2.46 and a 5.18% dividend. The company reported rising net income and has a strong fleet utilization. The recommendation score is 0.85, which is similar to BRFS. The LNG sector is stable, so this could be a safer bet with a good dividend.
ALIT (Alight) is at $3.59 with a negative P/E and a 4.47% dividend. The company's financials are shaky, with a negative P/E, but they have a high dividend. The recommendation score is 0.69, which is lower. The user might be interested in the dividend, but the financial health is concerning.
ABEV (Ambev) is priced at $2.33 with a P/E of 13.37 and a 7.78% dividend. The company is a major player in beverages with a strong market position. The recommendation score is 0.6, which is lower than others. The high dividend and stable industry could make this a good pick despite the lower score.
LCUT (Lifetime Brands) is at $3.77 with a negative P/E and a 4.44% dividend. The company has faced revenue declines and a negative recommendation score of 0.59. The high yield might attract income-focused investors, but the financials are not great.
DNUT (Krispy Kreme) is priced at $3.13 with a negative P/E and a 3.33% dividend. The company has been struggling with declining sales and a low recommendation score of 0.55. The high yield is tempting, but the operational issues are significant.
OXSQ (Oxford Square) is at $2.16 with a P/E of -125.12 and a 17.35% dividend. The stock has a very high yield but a negative P/E. The company is a BDC with a focus on buybacks, but the recommendation score is 0.54, which is quite low. The high yield might be too good to be true.
ACCO (ACCO Brands) is priced at $4 with a P/E of 7.85 and a 7.61% dividend. The company has a stable business model in office supplies and a decent recommendation score of 0.53. The higher price might be a concern, but it's still under $5 and offers a good dividend.
CIG.C (Energy Co) is at $2.75 with a P/E of 2.2 and a 7.12% dividend. The company's details aren't clear from the references, but the low P/E and high dividend are attractive. The recommendation score is 0.53, similar to ACCO.
Considering the user's profile, they're interested in medium to long-term investments and value fundamental analysis. High dividends and stable industries might appeal to them. EPIX and OXSQ have extremely high yields but come with significant risks. BRFS and ABEV are in stable sectors with better recommendation scores. DLNG and ACCO offer a balance of stability and dividends. The user might prefer BRFS and ABEV for their merger approvals and market positions, while DLNG and ACCO could be safer bets with consistent dividends. I'll structure the answer to highlight these options, providing a clear analysis of each, focusing on their strengths and risks, and ensuring the user understands the trade-offs.
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### 🌟 **Top Picks for Stocks Under $5: A Comprehensive Analysis** 🌟
Based on the latest data (as of **2025-09-15**), here’s a curated list of **10 stocks under $5** that meet your criteria: **Closing Price < $5**, **P/E Ratio < 15**, **Dividend Yield > 2%**, and **Top 10 by Quantitative Recommendation Score** . Let’s dive into the analysis:
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### 📊 **Key Metrics Overview**
| Stock Code | Stock Name | Last Price | P/E (TTM) | Dividend Yield | Quantitative Score |
|------------|----------------------|------------|------------|----------------|--------------------|
| **EPIX** | ESSA Pharma | $0.19 | -0.36 | **878.84%** | 1.12 |
| **BRFS** | BRF | $3.94 | 9.45 | **3.18%** | 0.85 |
| **DLNG** | Dynagas LNG | $3.80 | 2.46 | **5.18%** | 0.85 |
| **ALIT** | Alight | $3.59 | -1.66 | **4.47%** | 0.69 |
| **ABEV** | Ambev | $2.33 | 13.37 | **7.78%** | 0.60 |
| **LCUT** | Lifetime Brands | $3.77 | -2.47 | **4.44%** | 0.59 |
| **DNUT** | Krispy Kreme | $3.13 | -1.19 | **3.33%** | 0.55 |
| **OXSQ** | Oxford Square | $2.16 | -125.12 | **17.35%** | 0.54 |
| **ACCO** | ACCO Brands | $4.00 | 7.85 | **7.61%** | 0.53 |
| **CIG.C** | Energy Co | $2.75 | 2.20 | **7.12%** | 0.53 |
---
### 🎯 **Top Recommendations** 🎯
#### 1. **BRFS (BRF)**
- **Why?**
- **P/E Ratio**: 9.45 (undervalued relative to peers).
- **Dividend Yield**: 3.18% (stable income).
- **Key Catalyst**: Recent merger approval with Marfrig Global Foods .
- **Risks**: High debt levels and competition in the Brazilian food sector.
#### 2. **ABEV (Ambev)**
- **Why?**
- **P/E Ratio**: 13.37 (low for a consumer staple).
- **Dividend Yield**: 7.78% (high for the sector).
- **Key Catalyst**: Strong market share in Latin America’s beverage industry .
- **Risks**: Economic volatility in Brazil.
#### 3. **DLNG (Dynagas LNG)**
- **Why?**
- **P/E Ratio**: 2.46 (extremely undervalued).
- **Dividend Yield**: 5.18% (consistent cash flow).
- **Key Catalyst**: Long-term charters with major energy companies .
- **Risks**: Dependence on LNG demand.
#### 4. **ACCO (ACCO Brands)**
- **Why?**
- **P/E Ratio**: 7.85 (undervalued for a stable business).
- **Dividend Yield**: 7.61% (high for office supplies).
- **Key Catalyst**: Cost-cutting initiatives and fortress balance sheet .
- **Risks**: Declining demand for traditional office products.
---
### 🚨 **Red Flags** 🚨
- **EPIX (ESSA Pharma)**:
- **Risks**: Negative P/E (-0.36) and extreme dividend yield (878.84%) .
- **Why?** Recent merger discussions and legal disputes .
- **OXSQ (Oxford Square)**:
- **Risks**: Negative P/E (-125.12) and high leverage .
- **Why?** Focus on buybacks and dividend payments .
---
### 📊 **Final Takeaway**
If you’re looking for **high-yield, undervalued stocks** with **stable cash flows**, **BRFS**, **ABEV**, and **DLNG** are the top picks. For **high-risk, high-reward opportunities**, consider **EPIX** or **OXSQ**. Avoid **ALIT**, **LCUT**, and **DNUT** due to their negative P/E ratios and operational challenges.
Closing Price < $5; P/E Ratio < 15; Dividend Yield > 2%; Top 10 Sorted by Quantitative Recommendation Score
|code|stock code|stock name|Last Price|Last Change|Closing Price[20250915]|P/E(TTM)[20250915]|Dividend Yield (TTM)[20250915]|Quantitative Recommendation Score|market_code|
|---|---|---|---|---|---|---|---|---|---|
|EPIX|EPIX.O|ESSA Pharma|0.1923|-5.224248|0.1923|-0.360076|878.835153|1.1220659722222224|186|
|BRFS|BRFS.N|BRF|3.94|1.546392|3.94|9.451931|3.181142|0.8479532163742689|169|
|DLNG|DLNG.N|Dynagas Lng|3.8|-1.5544040000000001|3.8|2.460781|5.184895|0.84779299847793|169|
|ALIT|ALIT.N|Alight|3.59|-2.445652|3.59|-1.663269|4.470251|0.685792349726776|169|
|ABEV|ABEV.N|Ambev|2.33|1.304348|2.33|13.370686|7.7809870000000005|0.5978593272171254|169|
|LCUT|LCUT.O|Lifetime Brands|3.77|-3.333333|3.77|-2.466035|4.435305|0.5888888888888889|185|
|DNUT|DNUT.O|Krispy Kreme|3.13|-0.949367|3.13|-1.187034|3.330479|0.5501587301587302|185|
|OXSQ|OXSQ.O|Oxford Square|2.16|-0.917431|2.16|-125.124708|17.348472|0.5368814192343603|185|
|ACCO|ACCO.N|ACCO Brands|4|-0.24937700000000002|4|7.854686|7.61365|0.5325376527422563|169|
|CIG.C|CIG.C.N|Energy Co|2.75|-0.722022|2.75|2.195793|7.117855|0.5255930087390761|169|