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3 Stocks Under $5 That Could Be Hot Buys Today

If you’re looking for stocks with a lot of potential to rise in value, looking at ones that are low priced could be great options. Below are three stocks trading below $5 that have a lot of upside and could generate some strong returns for investors that buy today.

Ballard Power Systems Inc  (TSX:BLDP)(NASDAQ:BLDP) is a great clean energy stock for investors to get behind. Focusing on zero emissions is where the world is headed, and so investing in a stock like Ballard that produces cleaner fuel cell technology could be a great long-term play. With a stock at a market cap of just $1 billion, investors would be getting in at a time when the company is still fairly small in size.

The challenge in the short term is dealing with the growing pains. In its most recent quarter, the company saw sales dip year over year, while losses doubled. However, with a presence in key markets around the globe, there’s a lot of potential growth for Ballard Power Systems. As countries move toward more eco-friendly solutions, Ballard will likely see an uptick in sales.

Year to date, Ballard’s share price has risen by around 37%, and it’s still a cheap buy today.

Baytex Energy Corp  (TSX:BTE)(NYSE:BTE) has also seen its share price rise in 2019, but even with the increases, the stock is still trading at a significant discount to its book value. It could be an underrated buy today, as the company has been showing signs of life. With sales up 58% in its most recent quarter and Baytex posting a profit for the second time in three reporting periods, it could be an indication that things may be starting to turn around for the company.

Investors are still understandably concerned about the risks, especially with oil and gas being a big question mark and Batyex’s results lacking consistency. However, for those willing to stomach the risk, the returns could be significant. In the past three months, the stock has risen more than 30% and it’s still nowhere near where it was a year ago, losing half its value over the past 12 months.

Supreme Cannabis Company Inc (TSX:FIRE) is another stock that has been doing very well this year, rising more than 40% already in 2019. At a market cap of less than $600 million, the stock is another small one that investors have the opportunity to get in early before it takes off. The company is expected to release its earnings next week, and it could get a big boost in what’s likely going to be a big quarter, its first period that includes a full three months of recreational sales.

Trading at a price-to-sales ratio of less than 20, the stock looks like a bargain compared to others in the industry. Unlike its peers, Supreme Cannabis hasn’t posted the heavy losses that we’ve come to expect from cannabis stocks. There’s a lot of potential here and investors should keep a close eye on the stock, as it might not take much for its share price to take off.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

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