This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

$5 Stocks That Analysts Expect to Double

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.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIOD $0.26 -0.15%
CYTK $6.95 5.50%
GSI $1.29 0.00%
MNOV $4.22 0.96%
OREX $1.64 1.90%


Chart of I:DJI
DOW 15,942.40 -71.98 -0.45%
S&P 500 1,858.94 +6.73 0.36%
NASDAQ 4,305.3090 +36.5460 0.86%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs