Analysts and economists are expecting the U.S. economy to significantly accelerate in coming quarters as the coronavirus vaccine rollout facilitates the reopening of many businesses and the unlocking of pent-up demand in hard-hit segments of the economy, including restaurants, travel and retail.
With the next round of $1,400 stimulus payments set to go out starting this weekend, some of the most popular stocks among younger retail traders could get a major boost ahead of the economic reopening. Even after the market’s big run off its March 2000 lows, there are still some cheap stocks trading under $5 that could be in for a big run in the next several months.
Here are eight stocks under $5 that traders should watch in the near-term.
Sundial Growers Inc (NASDAQ: SNDL)
Cannabis stocks have been on quite a ride since the beginning of November. Young investors are extremely bullish on cannabis in general, particularly Sundial Growers. Once the economy is back on its feet Democrats in Washington could turn their attention to federal cannabis reform, which could boost stocks like Sundial, which currency trades at under $1.50.
OrganiGram Holdings Inc (NASDAQ: OGI)
Shares of Canadian cannabis company OrganiGram have skyrocketed this week following a large investment from tobacco giant British American Tobacco PLC (NYSE: BTI). OrganiGram still trades under $5, but it might not for much longer.
Castor Maritime Inc (NASDAQ: CTRM)
Castor Maritime is a dry bulk shipping stock, an industry that is certainly poised to rebound if the global economy bounces back. The Baltic Exchange Dry Index (BDI) has been trending higher in 2021, yet Castor shares trade at only around $1 per share.
See Also: Beginning Investor? Here’s How To Protect Your Portfolio In 2021
Rave Restaurant Group Inc (NASDAQ: RAVE)
Rave is the owner of several pizza restaurant franchises, including Pizza Inn. If the restaurant business comes back to life in 2021, Rave could be a big winner. The stock trades at under $1.50.
Chico’s FAS, Inc. (NYSE: CHS)
Chico’s FAS is a specialty retailer of private label women’s apparel, accessories and other products and is the owner of the Chico’s, White House Black Market, and Soma. A resurgence of the apparel retail sector could send Chico’s stock soaring well above its current $3.50 share price.
Tuniu Corp (NASDAQ: TOUR)
Tuniu is a Chinese online leisure travel company. Analysts expect leisure travel to return faster than business travel, and China contained the pandemic much earlier than many other parts of the world. Tuniu currently trades at just $3.80, but could have meaningful upside one pent-up travel demand is released.
Nokia Oyj (NYSE: NOK)
Nokia is both a play on 5G wireless networks and a bet on the WallStreetBets trade. One the stimulus checks go out, the same retail traders that have been buying GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) could also be buying Nokia.
Zomedica Corp (NYSE: ZOM)
Pet health company Zomedica is launching its first product, which could be a major catalyst for the stock. Zomedica is definitely a high-risk/high-reward reopening play at this point priced at under $2.30 per share.
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