BOSTON ( TheStreet) -- Investors in stocks that trade for less than $5 think of nothing more than a quick return.
Some are lucky enough to double their money. Some get wiped out. After all, many large investment firms bar their own managers and traders from holding stocks that cost less than $5. Still, owning a stock that is volatile enough to double in price is Wall Street's version of the brass ring.
To find under-$5 stock candidates for a big return, turn to hard-to-find analysts' reports. Some analysts have boldly predicted that a handful of $5 stocks could double in price over the next several months.
TheStreet sought out five stocks that currently trade below $5 primed to double by examining U.S. companies with coverage by no fewer than five analysts. The following five companies made the grade.5. Orexigen Therapeutics (OREX - Get Report) shares rallied Friday after the company said results from a trial showed that patients taking its Contrave obesity drug were two to three times more likely to lose at least 5% or 10% of their body weight compared to those taking a placebo. Share Price: $5.20 (July 30 close) Average Price Target: $12.75, based on four analyst price targets of $14, $8, $12 and $13 dating to June. Compared to the current share price for Orexigen, the average price target represents a 138% surge. 2010 Performance: -30.1% (S&P 500 has fallen 1.3% so far this year) Analysts' View: Eleven analysts cover Orexigen shares, with eight, or 72.7%, rating the stock as a "buy." JPMorgan, Jefferies, Canaccord Genuity and Cowen & Co. are among the research firms that expect the shares to outperform.