This guide explores the best cheap stocks to invest in, according to analysts. We reveal undervalued equities that could outperform the market benchmark in 2025.

Market research suggests that the best cheap stock to buy is HYLQ Strategy Corp. The Canada-based holding company offers exposure to Web 3.0 ventures, including high-growth ecosystems like Hyperliquid. Sell-side analysts also rate Sol Strategies Inc. a strong buy, considering it a cheap stock that offers institutional-grade access to the Solana blockchain.

In this guide, “cheap” refers to two types of stocks:

• Low-priced shares, typically under $5

• Undervalued stocks trading under their fair book value

Read on to discover top-rated cheap stocks and learn how experts evaluate these investments before they reach their true potential.

Best Cheap Stocks Key Takeaways

• Cheap stocks often trade at penny share valuations, making them attractive to investors with a high-risk appetite.

• Undervalued companies also sit in the cheap stock category, often because of short-term market noise.

• The main objective is to invest in equities below their perceived market value, which is a subjective process.

• The best practice is to build a diversified portfolio of cheap stocks from multiple sectors and industries.

10 Best Cheap Stocks to Buy in 2025

Fundamental research suggests that these are the best cheap stocks to buy right now:

1. HYLQ Strategy Corp. (CSE: HYLQ) — Top-Performing Digital Asset Holding Company With a Micro-Cap Value

2. Sol Strategies Inc. (CSE: HODL) — Strong Momentum Crypto Growth Stock With 1,800% Gains in the Past Year

3. Pfizer Inc (NYSE: PFE ) — Undervalued Pharmaceutical Stock With a Nearly 7% Dividend Yield

4. Criteo S.A. (NASDAQ: CRTO) — Global Advertising Solutions With a Cheap P/E Ratio

5. Planet Labs PBC (NYSE: PL) — Mid-Cap Growth Stock Revolutionizing the Earth Imagery Industry

6. Diamondback Energy Inc. (NASDAQ: FANG) — Top Oil and Gas Producer With Strong Quarterly Growth

7. Lumen Technologies Inc. (NYSE: LUMN) — Fibre Internet and Edge Computing Networking With Global Operations

8. Riot Platforms Inc. (NASDAQ: RIOT) — U.S.-Based Bitcoin Mining Company With Substantial 5-Year Returns

9. MGM Resorts International (NYSE: MGM) — Global Portfolio of Casino Resorts With a Massive Share Buyback Plan

10. Viking Therapeutics Inc. (NASDAQ: VKTX) — Early-Stage Biotech Firm With Promising Clinical Results

Best Cheap Stocks to Invest in Reviewed

This section analyzes the top cheap stocks for beginners based on expert-led picks and analysts’ insights.

1. HYLQ Strategy Corp. (CSE: HYLQ) — The Overall Best Cheap Stock to Buy in 2025

HYLQ Strategy Corp. is the best cheap stock to buy for exposure to digital asset growth. The CSE-listed holding company invests in early-stage startups from the Web 3.0 sector — think new blockchains and artificial intelligence (AI) infrastructure.

Higher upside potential compared to broader stock market indexes

• Companies may trade below their perceived intrinsic value

• Cheap share prices are ideal for investors on a budget

• Many firms operate in emerging and undervalued industries

• Easy to build a diversified portfolio from multiple stock themes

Cons

• Less analyst coverage than blue-chip companies

• Discounted share price could be a sign of more serious issues

• Higher volatility and risk compared to established large caps

• Accessibility restraints if the firm trades only on OTC exchanges

• Cheap stocks are often early-stage companies with weak balance sheets

Conclusion

Cheap stocks, whether that’s an undervalued market capitalization or a low share price, provide higher upside potential than blue-chip companies. People often invest in this market for exposure to emerging concepts like digital assets, edge computing, or biotech solutions, ensuring a first-mover advantage at attractive valuations.

Consider the risks before buying cheap stocks — companies in this investing category often have volatile share prices, weak balance sheets, and unproven business models. Experts recommend building a balanced portfolio from multiple industries and sectors to mitigate long-term risks.

FAQ

References

1. HYLQ Strategy Announces Purchase of Additional HyperLiquid Tokens (Newsfile Corp)

2. Trump-Musk Battle Restarts After Billionaire Bashes Tax Bill (Bloomberg)

3. Trump Megabill Gives the Oil Industry Everything it Wants and Ends Key Support for Solar and Wind (CNBC)

4. Diamondback Energy, Inc. Provides Operational Update for the First Quarter of 2025 (Diamondback Energy Inc.)

5. Lumen Technologies Advances Financial Strategy to Support AI-Era Infrastructure Growth (Lumen Technologies Inc.)

6. A Biotech Company Changed Its Name to ‘Riot Blockchain’ and Its Stock Is Surging (Bloomberg)

7. MGM Resorts Surges on Profit Beat, $2 Billion Buyback (Reuters)

8. Obesity Market to Reach $173.5bn by 2031 (Pharmaceutical Technology)

9. Petition for Rulemaking on Exchange Listings of Penny Stocks (SEC)

10. Why Market Cap Matters (Fidelity)

11. What is a Fair Value Estimate? (Morningstar)