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This Week's Bonus Content 3 Stocks Under $5 With Strong Analyst Upside PotentialWritten by Chris Markoch. Article Published: 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]
While many investors are rotating out of speculative penny stocks, others still embrace the risk-reward trade-off. Stocks trading under $5 carry elevated risk: many of these companies are unprofitable, and some generate little to no revenue. Most are also small-cap companies, a group that has struggled in recent years. Even though the Russell 2000 has shown some signs of life, that improvement hasn't been widespread across the broader small-cap sector. This may change in 2026 if the economic outlook continues to improve, as money could flow back into speculative names. As always, quality matters. One way to screen for quality is to look for stocks with positive analyst sentiment. That's true for the three names below. Each lets an investor start a sizable position with a modest outlay while still offering the potential for meaningful upside over the next five years. Profitability Milestone Meets Long-Term Emerging Market Growth Emerging-market stocks are expected to be among the winners in 2026. That hasn't translated yet to Grab Holdings Inc. (NASDAQ: GRAB), which is down roughly 15% so far this year. Based in Singapore, Grab operates a super app that combines technology, e-commerce and fintech services. One reason for the recent pullback is the proposed merger with Indonesian ride-hailer GoTo. The deal is not final and could face significant legislative changes in Indonesia that might limit Grab's earnings potential there. Grab also missed top-line expectations in its Q4 2025 earnings report. In context, revenue rose 19% year-over-year (YOY), and 2025 marked the company's first full year of profitability. Analysts forecast roughly 120% earnings growth over the next 12 months. That helps explain why sentiment remains bullish. GRAB has a consensus price target of $6.47, which implies about 54% upside from its current price. High-Risk Biotech With Platform Potential Penny stock investors often look to the biotech sector, where risk and reward are tightly balanced. One company to watch is Vaxart Inc. (OTCMKTS: VXRT), which meets the classic definition of a penny stock — trading just over $0.60 a share at the time of this writing. VXRT has limited analyst coverage; the only analyst to rate it in the past 12 months gives it a Buy with a $2 price target. As a clinical-stage company, all of Vaxart's candidates are still in trials, which helps explain the sparse coverage. The upside is clear: Vaxart is developing oral vaccines for influenza, norovirus and COVID-19. Beyond convenience and reducing needle-related anxiety, the company says its platform can provoke a broader immune response that may provide wider protection. Institutional ownership is modest at about 18%, but on a dollar-volume basis inflows outnumber outflows nearly 10-to-1. Resale Tailwinds Could Turn Today's Losses Into Tomorrow's Gains ThredUp Inc. (NASDAQ: TDUP) is down about 33% in 2026, but a broader view helps. Over the last 12 months TDUP is up more than 66%, which makes the recent decline look like a typical pullback amid investor reluctance toward unprofitable names. That "unprofitable" caveat may not last. ThredUp operates an online consignment and thrift marketplace that is gaining traction with Gen Z consumers, a trend reflected in the company's revenue. In its most recent quarter, revenue rose 12.5% YOY. ThredUp cites a GlobalData 2025 market survey projecting the U.S. secondhand market's gross merchandise value will grow at a compound annual growth rate (CAGR) of 9% through 2029. Institutional investors hold an impressive 89% of the stock. Net buying outpaces selling by roughly two-to-one in dollars and three-to-one by trade count. That said, short interest is near 17%, which can add short-term volatility. The consensus price target from six analysts is $12.50, implying more than 190% upside from the price at the time of writing.
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