Investors are attracted to low-priced stocks for one overriding reason: the possibility of big percentage gains from relatively small price movements. It’s a simple matter of math. A share price increase of, say, 50 cents on a $4 stock equates to a 12.5% gain, while that same 50-cent price move on a high-priced company trading at $400 a share would be a fairly insignificant rise of just 0.125%.
Plus, there’s the simple satisfaction of owning a larger number of shares. Many investors just feel better about being able to own a few hundred shares instead of just one or two. Although it must be pointed out that, from a fundamental standpoint, there is no demonstrable benefit to lower-priced shares based on the fact that they are more affordable. The performance of a stock will ultimately be based on sales and earnings growth over the long run, and the stock price alone should never be used as a definitive indication of quality or value.
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That said, there are bargains in the stock market. That’s because many investors — especially institutional investors — avoid low-priced stocks in favor of the high-priced, large-cap names that dominate the financial news. Investors who understand the risks and are willing to do some homework can make big profits in low-priced stocks if things go their way.
The following list includes five stocks — all trading at under $5 — that are worth looking into. They are not free from risk, but they do have real potential:
| Stock | Market Capitalization* | Year-to-Date Performance* |
| Verastem Inc. (ticker: VSTM) | $228 million | -19.5% |
| So-Young International Inc. (SY) | $207 million | +148.7% |
| Information Services Group Inc. (III) | $223 million | +38.3% |
| BlackBerry Ltd. (BB) | $2.8 billion | +24.8% |
| GoodRx Holdings Inc. (GDRX) | $1.7 billion | +6.0% |
*As of June 26 close.
Verastem Inc. (VSTM)
The average analyst price target for VSTM is $15.25, which represents a 266% upside potential based on the stock’s $4.16 June 26 closing price. There are no guarantees when it comes to equity investing, but it’s clear that there is significant profit potential in this name.
VSTM is a $228 million, late-stage biopharmaceutical company that’s developing innovative medical treatments for cancer patients. The company’s drug pipeline features novel small-molecule drugs that target signaling pathways and inhibit cancer growth.
The company’s key drug candidates in advanced clinical trials include avutometinib and defactinib. On May 8, VSTM was granted accelerated approval by the Food and Drug Administration for its Avmapki Fakzynja Co-pack for the treatment of adults with KRAS-mutated ovarian cancer.
This is a high-risk stock with huge potential that’s suitable for aggressive investors.
So-Young International Inc. (SY)
On June 16, SY closed at 95 cents a share. As of the close on June 26, the stock closed at $2.06, an astounding 117% jump in just a few trading days. There is, of course, no assurance that the stock will continue at that pace, but that kind of appreciation warrants the attention of investors.
SY is a small China-based company with a market cap of just $207 million. The company trades on the Nasdaq Stock Exchange as an American depositary receipt, or ADR.
SY is quickly establishing itself as a leading online platform for medical aesthetic services — that is noninvasive, cosmetic dermatology and dentistry — and consumer health care services in China. The company markets the So-Young mobile app and its Weixin mini-program to health- and appearance-conscious customers and medical patients. The app connects users with medical facilities and professionals who can support them, answer questions, and book in-person appointments with doctors, practitioners and dentists.
SY also markets equipment and devices such as laser hair removers as well as high-quality cosmetics to its customers. SY is capitalizing on an important health trend in a huge developing market.
[Read: 15 Best Dividend Stocks to Buy Now]
Information Services Group Inc. (III)
As of June 26, the Nasdaq Composite index was up 4.4% year to date. III, a component stock of that benchmark, has done much better — up 38.3% for that same period.
III is a $223 million information technology company that was founded in 2006 and has its headquarters in Stamford, Connecticut. This small-cap tech company is less than 20 years old but has 1,600 employees and does business in more than 20 countries.
III is a research and advisory firm. It helps its more than 900 clients integrate artificial intelligence into their operations and business applications. According to the company’s LinkedIn profile, 75 of the top 100 global companies depend on III to achieve operational excellence and growth.
The company provides valuable guidance on AI services like automation, cloud computing, data analytics, sourcing advisory and change management. It designs and delivers customized AI solutions to government organizations and companies in industries like finance and health care.
BlackBerry Ltd. (BB)
BlackBerry stock has had a rough time in recent years, surging to about $14 in 2021 and then dropping down to its pre-pandemic levels soon after. The good news is that the stock has been slowly but surely recovering the lost ground. BB closed at $4.72 on June 26 and has logged a 24.9% year-to-date return.
BB was once a premier maker of handheld mobile communication devices. The company stopped making cell phones in 2016, but has since transformed itself into an AI-focused enterprise software company providing cybersecurity and data privacy solutions to modern automakers.
BlackBerry’s premier product is called QNX. Some variation of that innovative software solution is installed in more than 255 million high-tech vehicles, securing more than 500 endpoints. Today’s automobiles, whether electric or gasoline-powered, increasingly depend on advanced computers and digital networking for modern features such as autonomous driving and navigation. The software designed and sold by BB is recognized as state-of-the-art in this important field.
BB has a market cap of $2.8 billion.
GoodRx Holdings Inc. (GDRX)
This $1.7 billion digital health care company is performing pretty well in 2025 after struggling to find its footing in 2024. The stock is up 6% year to date as of June 26. The GoodRX platform is dedicated to making prescription drugs and other health care essentials more affordable and accessible to the American consumer. This Santa Monica, California-based company provides on-demand price comparisons on thousands of medications and health care services.
The GoodRX app is free to download, but it offers customers premium-level service through its paid subscription product called GoodRX Gold. GDRX also boosts revenue by providing subscriptions to popular and necessary drug treatments. GDRX reported Q1 2025 revenue of $203 million, which represented a 3% year-over-year increase.
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Update 06/27/25: This story was previously published at an earlier date and has been updated with new information.
