25 Stocks Under $5 With Buy Ratings From Top Sell Side Analysts

Looking for low-priced stocks with bullish backing from knowledgeable investors? We ran a screen on micro cap companies or larger ($50 mil+) with strong ratings from top analyst groups.

Specifically, we screened stocks under $5 for “buy” or “overweight” ratings from other reputable analyst groups which include Barclays, Argus, Deutche, Canacord Genuity, Needham and Collin Stewart.

Caution and Reason

Many investors are drawn to low-priced stocks because of the large return potential when share price rises by marginal amounts. For the same reason, investors must be very cautious because a small drop in price means a big decrease. This is why it might be helpful to have the backup of a large investment bank’s analysts. Their full-time job is to analyze companies, so their word is as professional as it gets. They often have personal relationships with the companies they are assigned to, and visit the company to get more accurate figures out their value.

Bargain hunting investors should note that just because a stock is trading at a low price does not necessarily mean it is trading below fair value. Nor does a “buy” or “overweight” rating signal they are bound to rally. Analysts are human, and therefore known to make mistakes. And ratings are not updated all that frequently, so pay attention to the dates that the group issued their rating and consider what events have occurred in the meantime.

Use this list as a starting point for your own analysis.

1. Anthera Pharmaceuticals, Inc (ANTH, Earnings, Analysts, Financials): A biopharmaceutical company, focuses on developing and commercializing products to treat diseases associated with inflammation. The company’s development programs focus on anti-inflammatory therapeutics for cardiovascular diseases, lupus, and other serious diseases. On 11/01/2011, Deutsche Bank had a Buy rating on the stock.On 12/02/2011, Collins Stewart had a Buy rating on the stock. Market cap at $67.25M, most recent closing price at $0.85.

2.  Aastrom Biosciences, Inc. (ASTM, Earnings, Analysts, Financials): Engages in developing autologous cell therapies for the treatment of severe and chronic cardiovascular diseases. Market cap at $77.51M, most recent closing price at $1.82. On 05/22/2012, Needham had a Buy rating on the stock.

3. BioMimetic Therapeutics Inc. (BMTI, Earnings, Analysts, Financials): Engages in the development and commercialization of regenerative protein therapeutic products primarily used for bone and tissue regeneration, repair and healing of musculoskeletal injuries, and conditions affecting bones, tendons, ligaments, and cartilage. Market cap at $111.47M, most recent closing price at $3.95. On 11/22/2011, Collins Stewart had a Buy rating on the stock.

4.  Callidus Software Inc. (CALD, Earnings, Analysts, Financials): Provides sales performance management (SPM) software and services. Market cap at $149.38M, most recent closing price at $4.31. On 05/25/2012, Oppenheimer had a Outperform rating on the stock.

5.  Cerus Corporation (CERS, Earnings, Analysts, Financials): Engages in the development and commercialization of the INTERCEPT Blood System. Market cap at $179.81M, most recent closing price at $3.28. On 02/29/2012, Robert W. Baird had a Outperform rating on the stock.

6. China Gerui Advanced Materials Group Ltd. (CHOP, Earnings, Analysts, Financials): Engages in the manufacture and sale of cold-rolled narrow strip steel products in the People’s Republic of China. Market cap at $118.37M, most recent closing price at $2.03. On 11/18/2011, Oppenheimer had a Outperform rating on the stock.

7. Curis Inc. (CRIS, Earnings, Analysts, Financials): Focuses on the research and development of cancer therapeutics. Market cap at $340.77M, most recent closing price at $4.28. On 12/09/2011, Oppenheimer had a Outperform rating on the stock.

8. Cytokinetics, Incorporated (CYTK, Earnings, Analysts, Financials): Engages in the discovery and development of small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Market cap at $105.45M, most recent closing price at $0.79. On 07/02/2012, Needham had a Buy rating on the stock.

9. E-Commerce China Dangdang Inc. (DANG, Earnings, Analysts, Financials): Operates as a business-to-consumer e-commerce company in the People’s Republic of China. Market cap at $393.16M, most recent closing price at $4.92. On 03/27/2012, Oppenheimer had a Outperform rating on the stock.

10. GOL Linhas A (GOL, Earnings, Analysts, Financials): Operates as a low-cost low-fare airline in Latin America. Market cap at $1.3B, most recent closing price at $4.81. On 11/01/2011, Barclays Capital had a Overweight rating on the stock.

11. Insmed Incorporated (INSM, Earnings, Analysts, Financials): Focuses on the development of inhaled pharmaceuticals for the site-specific treatment of serious lung diseases. Market cap at $76.6M, most recent closing price at $3.08. On 09/16/2011, Wedbush had a Outperform rating on the stock.

12. Isoftstone Holdings Limited (ISS, Earnings, Analysts, Financials): Provides various information technology (IT) services and solutions in the Greater China and internationally. Market cap at $276.65M, most recent closing price at $4.92. On 01/10/2012, Oppenheimer had a Outperform rating on the stock.

13. Mitek Systems Inc. (MITK, Earnings, Analysts, Financials): Develops, sells, and services software solutions related to mobile imaging applications and intelligent recognition software in the United Stats and Internationally. Market cap at $121.05M, most recent closing price at $4.67. On 03/26/2012, Needham had a Buy rating on the stock.

14. Netlist, Inc. (NLST, Earnings, Analysts, Financials): Together with its subsidiaries, designs, manufactures, and sells intelligent memory subsystems for the datacenter server, high-performance computing, and communications markets primarily in the United States and the People’s Republic of China. Market cap at $53.14M, most recent closing price at $1.87. On 11/11/2011, Needham had a Buy rating on the stock.

15. Overland Storage Inc. (OVRL, Earnings, Analysts, Financials): Provides data management and data protection solutions for backup and recovery systems worldwide. Market cap at $51.06M, most recent closing price at $1.85. On 06/04/2012, Needham had a Buy rating on the stock.

16. Pluristem Therapeutics, Inc. (PSTI, Earnings, Analysts, Financials): Engages in the research, development, and production of placental-derived adherent stromal cells (ASCs). Market cap at $186M, most recent closing price at $4.15. On 05/22/2012, Needham had a Buy rating on the stock.

17. Raptor Pharmaceuticals Corp. (RPTP, Earnings, Analysts, Financials): Operates as a biotechnology company in the United States. Market cap at $237.79M, most recent closing price at $4.84. On 09/16/2011, Oppenheimer had a Outperform rating on the stock.

18. ShoreTel, Inc. (SHOR, Earnings, Analysts, Financials): Provides Internet protocol (IP) telecommunications systems for enterprises in the United States. Market cap at $245.4M, most recent closing price at $4.25. On 10/04/2011, Barclays Capital had a Overweight rating on the stock.

19. Sunesis Pharmaceuticals Inc. (SNSS, Earnings, Analysts, Financials):  Focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. Market cap at $153.08M, most recent closing price at $3.25. On 03/06/2012, Canaccord Genuity had a Buy rating on the stock.

20. TranS1, Inc. (TSON, Earnings, Analysts, Financials): Focuses on products that implement its proprietary surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine. Market cap at $72.54M, most recent closing price at $2.66. On 02/27/2012, Canaccord Genuity had a Buy rating on the stock.

21. Tranzyme, Inc. (TZYM, Earnings, Analysts, Financials): Focuses on discovering, developing, and commercializing small molecule therapeutics for the treatment of acute and chronic gastrointestinal (GI) motility disorders in the United States and internationally. Market cap at $97.21M, most recent closing price at $3.95. On 08/13/2012, Canaccord Genuity had a Buy rating on the stock.

22. MEMC Electronic Materials Inc. (WFR, Earnings, Analysts, Financials): Engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Market cap at $646.58M, most recent closing price at $2.80. On 09/16/2011, Deutsche Bank had a Buy rating on the stock. On 12/09/2011, Collins Stewart had a Buy rating on the stock.

23. YM BioSciences Inc. (YMI, Earnings, Analysts, Financials): Engages in the licensing and commercialization of drug products and technologies primarily for the treatment of cancer or cancer-related conditions worldwide. Market cap at $319.83M, most recent closing price at $2.03. On 03/26/2012, Canaccord Genuity had a Buy rating on the stock.

24. Zynga, Inc. (ZNGA, Earnings, Analysts, Financials): Develops, markets, and operates online social games as live services on the Internet, social networking sites, and mobile platforms. Market cap at $2.28B, most recent closing price at $3.0. On 05/31/2012, Robert W. Baird had a Outperform rating on the stock.

25. Quiksilver Inc. (ZQK, Earnings, Analysts, Financials): Designs, produces, and distributes branded apparel, footwear, accessories, and related products. Market cap at $483.26M, most recent closing price at $2.92. On 09/02/2011, Robert W. Baird had a Outperform rating on the stock.

Written by Rebecca Lipman. Ratings data sourced from Reuters, all other data sourced from Finviz. 

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Analyze These Ideas: Getting Started

• Read descriptions for all companies mentioned
• Access a performance overview for all stocks in the list
• Compare analyst ratings for the companies mentioned
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• Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

• Anthera Pharmaceuticals, Inc (ANTH, Chart, Download SEC Filings)
• Aastrom Biosciences, Inc. (ASTM, Chart, Download SEC Filings)
• BioMimetic Therapeutics Inc. (BMTI, Chart, Download SEC Filings)
• Callidus Software Inc. (CALD, Chart, Download SEC Filings)
• Cerus Corporation  (CERS, Chart, Download SEC Filings)
• China Gerui Advanced Materials Group Ltd. (CHOP, Chart, Download SEC Filings)
• Curis Inc.  (CRIS, Chart, Download SEC Filings)
• Cytokinetics, Incorporated  (CYTK, Chart, Download SEC Filings)
• E-Commerce China Dangdang Inc.  (DANG, Chart, Download SEC Filings)
• GOL Linhas A (GOL, Chart, Download SEC Filings)
• Insmed Incorporated  (INSM, Chart, Download SEC Filings)
• Isoftstone Holdings Limited (ISS, Chart, Download SEC Filings)
• Mitek Systems Inc. (MITK, Chart, Download SEC Filings)
• Netlist, Inc. (NLST, Chart, Download SEC Filings)
• Overland Storage Inc.  (OVRL, Chart, Download SEC Filings)

• Pluristem Therapeutics, Inc. (PSTI, Chart, Download SEC Filings)
• Raptor Pharmaceuticals Corp.  (RPTP, Chart, Download SEC Filings)
• ShoreTel, Inc.  (SHOR, Chart, Download SEC Filings)
• Sunesis Pharmaceuticals Inc. (SNSS, Chart, Download SEC Filings)
• TranS1, Inc. (TSON, Chart, Download SEC Filings)
• Tranzyme, Inc. (TZYM, Chart, Download SEC Filings)
• UQM Technologies, Inc (UQM, Chart, Download SEC Filings)
• MEMC Electronic Materials Inc. (WFR, Chart, Download SEC Filings)
• YM BioSciences Inc.  (YMI, Chart, Download SEC Filings)
• Zynga, Inc. (ZNGA, Chart, Download SEC Filings)
• Quiksilver Inc.  (ZQK, Chart, Download SEC Filings)

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