When you buy stock, you don’t have to pay tons of money per share. What you pay for a share doesn’t necessarily to what kind of money you will make from it. The Street outlines the top ten stocks under $5 for this year. Let’s take a look at a few.
Maybe you’re new to the stock market or trying to test out the waters. Maybe you know you’re not willing to risk too much right off the bat. There’s nothing wrong with that. If you’re looking to invest a few bucks to test out where that will take you, listen up.
For the newbies out there only willing to risk a small amount, digital financial media company The Street recently outlined the top ten stocks under $5 for 2012. Here’s the lowdown on who made the list and why.
Subscription satellite radio company Sirius XM makes the list. Shares are going for $1.90. Stock performance for Sirius XM went up %16 in 2011. Subscriber accounts have been on the rise, a sure sign that investing here could be a smart idea.
Sprint Nextel shares are selling for $2.69. Though stock performance was down last year, things are looking up for this company.
The Street reports that, “The company committed $15 to bring the Apple iPhone to its network.” Sprint Nextel is the third largest wireless provider behind AT&T and Verizon. Maybe with its adoption of the iPhone, Sprint Nextel will become even more of a contender.
Next on the list is Gastar Exploration. “Gastar is an independent energy company, engaged in the exploration, development and production of natural gas and oil in the U.S. and Australia.” The share price is $3.45. Despite the fact that last year brought about a 20% drop, analysts still feel that buying shares with Gastar Exploration is a win this year.
U.S. Airways Group Inc. makes the list as well despite the fact that stock for most airlines suffered last year. Analysts believe that the $4.90 share will double over the next 12 months.
Several companies grace the list that analysts have big hopes for in 2012. Most of them actually were down in 2011 but seem promising for 2012. The list includes Hersha Hospitality, Power-One, Magnum Hunter Resources, Hercules Offshore, and Abraxas Petroleum Corporation.
The next few months will show if analysts are right about the under $5 shares for 2012.