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Additional Reading from MarketBeat Media 3 Stocks Under $5 With Strong Analyst Upside PotentialAuthored by Chris Markoch. Originally 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 dynamic. Stocks trading under $5 carry significant risk: many are unprofitable, and some generate little or no revenue. In almost every case these are small-cap companies, a group that has been beaten down in recent years. Even though the Russell 2000 shows some signs of recovery, that strength hasn't been widespread across the broader small-cap sector. That could change in 2026 if the economic outlook continues to improve. In that scenario, capital 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 companies with positive analyst sentiment. That applies to the three stocks below. Each offers an opportunity to establish a meaningful position with a modest investment while retaining the potential for significant 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 been the case so far for Grab Holdings Inc. (NASDAQ: GRAB), which is down about 15% this year. Based in Singapore, Grab operates a "super app" that combines technology, e-commerce and fintech services. One reason behind the stock’s recent pullback is its proposed merger with Indonesian ride-hailing competitor GoTo. The deal is not finalized and could face significant legislative changes in Indonesia that might limit Grab's earnings potential in that market. The company also missed revenue expectations slightly in its Q4 2025 earnings report. That said, 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 stock has a consensus price target of $6.47, about 54% above its current price. High-Risk Biotech With Platform Potential Penny-stock investors often look to the biotechnology sector, where risk and reward are amplified. One company to watch is Vaxart Inc. (OTCMKTS: VXRT), the only name on this list that fits the classic penny-stock definition. At the time of writing, VXRT traded just over $0.60 per share. VXRT doesn't have heavy analyst coverage, but the sole analyst rating issued in the past 12 months is a Buy with a $2 price target. It's not uncommon for analysts to overlook some biotech firms. Vaxart is a clinical-stage company, meaning all of its candidates are still in clinical trials. The upside case is straightforward: the company is developing oral vaccines primarily for influenza, norovirus and COVID-19. Beyond the convenience and avoidance of needles, Vaxart says its platform can induce a broader immune response that may offer wider protection, according to the company's filing document. Institutional ownership of VXRT is modest at about 18%, but, by dollar volume, inflows have outpaced 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 longer view is informative: over the last 12 months TDUP is up more than 66%, suggesting the recent weakness may simply be a pullback as investors shy away from unprofitable firms. In ThredUp's case, the caveat "yet" matters. The company operates an online consignment and thrift marketplace that has gained traction with Gen Z consumers. In its most recent quarter, revenue grew 12.5% YOY. ThredUp cites a GlobalData 2025 market survey forecasting that the U.S. secondhand market's gross merchandise value will grow at a compound annual growth rate (CAGR) of 9% through 2029. Institutions own an impressive ~89% of TDUP shares. Buying has outpaced selling roughly two-to-one by dollar volume and three-to-one by number of trades. That said, short interest is around 17%, which can add near-term volatility. The consensus price target from six analysts is $12.50, more than 190% above the current price at the time of writing.
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