Stocks that trade for less than $5 per share are generally referred to as penny stocks because you can buy them so cheaply, as in low-priced. While the promise of finding the next Apple or Amazon is tempting (yes, they were both once penny stocks), the truth is, the vast majority of penny stocks never break out.
They are mostly small companies, often start-ups, that are unproven with little in the way of earnings. That said, you can find good, established companies in this price range that may have seen their stock price drop or stall for myriad reasons, but they still have solid financial and good earnings potential. Here is one such company: Genworth Financial (NYSE: GNW).
Let's find out a bit more about this top stock currently trading under $5 a share.
Source Fool.com