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This Week's Featured Content 3 Stocks Under $5 With Strong Analyst Upside PotentialWritten by Chris Markoch. Posted: 2/24/2026. 
Key Points - Grab Holdings is gaining analyst support as revenue growth and its first full year of profitability highlight long-term opportunity in Southeast Asia’s expanding digital economy.
- Vaxart offers speculative biotech upside with its oral vaccine platform targeting influenza, norovirus, and COVID-19, creating a high-risk, high-reward setup.
- ThredUp is positioned to benefit from the fast-growing resale market, with strong institutional ownership and industry forecasts pointing to sustained secondhand demand.
- Special Report: [Sponsorship-Ad-6-Format3]
As many investors rotate out of speculative penny stocks, others still embrace the risk-reward tradeoff. Stocks trading under $5 carry elevated risk: many are unprofitable, and some generate little to no revenue. Most of these companies are small-cap, and small caps have underperformed in recent years. Even though the Russell 2000 is showing some recovery, that improvement hasn't been widespread across the broader small-cap sector. That could change in 2026 if the economic outlook improves, as money may flow back into speculative names. But, as with any area of the market, quality matters. One way to screen for quality is to look for stocks with positive analyst sentiment. That's true of the three names below. Each lets investors establish a meaningful position with a modest outlay while retaining the potential for significant upside over the next five years. Profitability Milestone Meets Long-Term Emerging Market Growth Emerging-market stocks are positioned to outperform in 2026, but that hasn't been the case so far for Grab Holdings Inc. (NASDAQ: GRAB), which is down about 15% year-to-date. Based in Singapore, Grab operates a super app that blends technology, e-commerce and fintech services. One reason for the pullback is Grab's proposed merger with Indonesian ride-hailing competitor GoTo. The deal isn't final and could face regulatory or legislative changes in Indonesia that may limit the company's earnings potential there. The company also missed slightly on the top line in its Q4 2025 earnings report. Still, revenue rose 19% year-over-year, and the period marked Grab's first full year of profitability. Analysts are forecasting roughly 120% earnings growth over the next 12 months. This helps explain the bullish sentiment. GRAB has a consensus price target of $6.47, about 54% above its current price. High-Risk Biotech With Platform Potential Biotech often attracts penny-stock investors because of its asymmetrical risk-reward profile. One company to watch is Vaxart Inc. (OTCMKTS: VXRT), the only firm on this list that meets the classic penny-stock definition — it was trading just above $0.60 per share at the time of writing. VXRT doesn't have heavy analyst coverage, but the one analyst to rate it in the last 12 months gave it a Buy with a $2 price target. As a clinical-stage company, all of Vaxart's candidates remain in trials, which helps explain the limited coverage. The upside is clear if the science pans out: Vaxart develops oral vaccines targeting influenza, norovirus and COVID-19. Besides convenience and avoiding needle phobia, the company says its platform may elicit a broader immune response that could offer wider protection. Institutional ownership is only about 18%, though dollar-volume inflows have outpaced outflows nearly 10:1. Resale Tailwinds Could Turn Today's Losses Into Tomorrow's Gains ThredUp Inc. (NASDAQ: TDUP) is down roughly 33% year-to-date in 2026, but over the past 12 months it's up more than 66%. That suggests the recent decline could be a typical pullback as investors avoid companies that aren't yet profitable. In ThredUp's case, add the caveat "yet." The company operates an online consignment and thrift marketplace that's gaining traction with Gen Z. In its most recent quarter, revenue rose 12.5% year-over-year. ThredUp cites a GlobalData 2025 market survey forecasting U.S. secondhand gross merchandise value to grow at a 9% compound annual growth rate through 2029. Institutions own about 89% of the stock, and net buying has outpaced selling roughly 2:1 by dollar value and 3:1 by number of trades. However, short interest is around 17%, which can add short-term volatility. The six-analyst consensus price target is $12.50, more than 190% above the current price as of this writing.
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