5 Stocks to Watch Under $5

NEW YORK (TheStreet) -- Analysts expect these stocks to outperform the broader markets. These under $5 stocks have upside potential of 25.7% to 87.6% with a mean value of 45.6% and average buy rating of 81%.

These stocks are listed in ascending order of upside potential.
5. Sirius XM Radio ( SIRI) is a satellite radio service offering music, sports, news, talk, entertainment, traffic and weather channels in the U.S. on a subscription basis. Certain of the company's music and other channels are available over the Internet and through applications for Apple, Blackberry and Android-powered smartphones. The company distributes satellite radios through automakers (OEMs), retail locations and its Websites.

Of the 12 analysts covering the stock, 75% recommend a buy and 17% suggest a hold. The stock's average 12-month price target is $2.28, which is 25.7% higher than the current price, according to a Bloomberg consensus.

For the 2011 third quarter, Sirius recorded revenue of $763 million, up 6% from $718 million during the 2010 quarter. Adjusted EBITDA rose 16% to $197 million, vs. $170 million during the third quarter of 2010. Subscriptions swelled 7% year-over-year to 21.3 million as of Sep. 2011. During the quarter, self-pay net additions and the self-pay subscriber base increased 41% and 7% to 0.4 million and 17.5 million, year-over- year. Cash and cash equivalents at the end of the quarter amounted to $600 million. Net debt to adjusted EBITDA declined to 3.4x from 4.5x in the 2010 third quarter.

The company has reiterated its full year 2011 guidance and expects net subscriber additions of 1.6 million, while revenue is expected to surpass $3 billion. Adjusted EBITDA is seen at $715 million. For full year 2012, the company expects revenue growth of 10% to $3.3 billion year-over-year. Adjusted EBITDA is expected to grow 20% to ~$860 million, while free cash flow is seen up 75% at $700 million.

4. Quicksilver ( ZQK) is a leading global youth apparel and accessory company focusing on lifestyle products associated with sports like surfing, skateboarding and snowboarding. The company's three core brands are Quiksilver, Roxy and DC, and several other smaller brands.

Seventy-three percent of the 11 analysts covering the stock recommend a buy. There are no sell ratings. The stock's average 12-month price target is $4.70, up 28.4% from the current price, according to a Bloomberg consensus.

The company reported better-than-expected revenue of $545 million for the 2011 fourth quarter, vs. analysts' estimate of $528.5 million, an increase of 10% from $495 million in the 2010 quarter. Income from continuing operations, including pro-forma adjustments, stood at $67.9 million, or 38 cents per share, compared to a loss of $23.1 million, or 15 cents per share, during the same period previous year.

For full year 2011, net revenue rose 6% to $1.95 billion, against $1.84 billion in fiscal 2010. The loss from continuing operations, including charges, reached $21.3 million, or 13 cents per share, from $11.5 million, or 9 cents per share, for full year 2010. Revenue generated from the Americas, Europe and Asia-Pacific for full year 2011 were $914.4 million, $761.1million and $272.5 million, vs. $843.1 million, $729 million and $260.6 million during 2010.

3. Curis ( CRIS) is a drug discovery and development company engaged in developing cancer therapies. The company's advanced program is Hedgehog pathway inhibitor under collaboration with Genentech, a wholly owned member of the Roche Group.

All the nine analysts covering the stock recommend a buy on it. Its average 12-month price target is $6.07, up 33.1% from the current price, as per a Bloomberg consensus.

For the 2011 third quarter, Curis reported revenue of $0.1 million, down from $3.2 million during the 2010 period. This decrease is attributable to $3.0 million in license fee revenue, which was recorded in the 2010 third quarter, subsequent to a major payment the company received from Debiopharm during the quarter. Operating expense was maintained at $5.0 million. Net loss stood at $4.2 million, or 5 cents per share, vs. net loss of $1.5 million, or 2 cents per share, for the same period prior year.

Curis recently said that its collaborator Roche has submitted a Marketing Authorization Application (MAA) for Vismodegib (GDC-0449, RG3616) to the European Medicines Agency (EMA). During November, Curis entered into an agreement, wherein The Leukemia & Lymphoma Society (LLS) will support the company's ongoing development of its oral small molecule dual Pi3K and HDAC inhibitor CUDC-907 targeting patients with B-cell lymphoma and multiple myeloma.

Going forward, the company expects to initiate a Phase I clinical trial for an oral formulation of CUDC-101 and also a Phase I trial for new development candidate CUDC-907, a PI3K and HDAC inhibitor, during the first half of 2012. Debiopharm, the company's licensee for its Hsp90 inhibitor Debio 0932, has indicated that it plans to initiate Phase Ib studies of Debio 0932 in the near term.

2. Immunomedics ( IMMU) focuses on the development of monoclonal antibody-based products for treating cancer, autoimmune and other serious diseases. The company has developed several advanced technologies enabling it to create humanized antibodies, which can be used either singly in unlabeled or naked form, or conjugated with radioactive isotopes, chemotherapeutics, cytokines or toxins, in each case to create highly targeted agents.

Seventy-eight percent of the nine analysts covering the stock recommend a buy on it. The stock's average 12-month price target is $5.13, which is 53.4% higher than the current price, according to a Bloomberg consensus.

For 2012 first quarter, the company recorded net loss of $5.1 million, or 7 cents per share, as compared to net loss of $6.5 million, or 9 cents per share in the year-earlier period. Overall revenue for the quarter grew to $1.1 million from $1.5 million in the same quarter in previous year. Cash and cash equivalents at the end of the quarter were $20.7 million.

In the second half of December, the company and UCB S.A. announced restructuring of the epratuzumab license agreement, providing UCB the flexibility to choose a partner to sublicense its rights for certain territories. In addition, UCB returned its buy-in right for the cancer indication to Immunomedics. Same month, Immunomedics was granted a U.S. patent for increasing longevity and protein yield from a cell culture. Also, the company presented two preclinical studies with an objective to produce potent therapeutics for diverse epithelial carcinomas, including breast cancer.

For Clivatuzumab, the company completed enrollment for the phase Ib/II in patients with advanced pancreatic cancer and has begun preparations to launch a phase III pivotal trial of this agent for 2012.

1. Navios Maritime ( NM) transports and transships dry bulk commodities -- iron ore, coal and grain. It operates in three segments: Drybulk Vessel Operations, Tanker Vessel Operations, and Logistics.

Of the 10 analysts covering the stock, 8 recommend a buy and 2 suggest a hold. There are no sell ratings. The stock's average 12-month price target is $6.36, about 87.6% higher than the current price, Bloomberg data show.

Net income for the 2011 third quarter was $16.3 million, or 16 cents per share, on revenue of $173.8 million, compared to $18.7 million, or 18 cents per share, on revenue of $162.1 million in the same quarter prior year. EBITDA rose 6.2% to $67.3 million in the third quarter of 2011, vs. $63.3 million in the 2010 period. At the segment level, revenue from dry bulk vessel operations and logistics stood at $105 million and $68.8 million, as compared to $106.8 million and $55.3 million in the year-earlier period, respectively. The company has declared a quarterly cash dividend of $0.06 per share of common stock payable Jan. 4, 2012 to stockholders of record Dec. 19, 2011.

The company expects fleet coverage of 68.4% and total contracted revenues of $244.7 million during 2012.

>>To see these stocks in action, visit the 5 Stocks to Watch Under $5 portfolio on Stockpickr.

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