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Best stocks under $5 in Australia (2023)

We used Finder's proprietary algorithm to find the 10 best stocks under $5 on the ASX.

Important note

Unfortunately, there's no one magic stock that is 'best' for everyone. Instead, you should look into your own portfolio, individual needs and investment strategy to decide what stock is right for you. Further, nobody can say for certain which direction a share will go as past performance is no guarantee of future results. So keep in mind these are stock ideas only and should not be taken as personal financial advice.

It's not easy picking quality stocks.

To help identify stock picks that are currently under $5, we used Finder's proprietary algorithm to filter Australian-listed companies that have strong fundamentals.

We take into account historical prices, dividends, revenue growth, (low) price volatility and profit margins, which might indicate a quality stock.

To avoid speculative stocks, we only include companies with a market cap of more than $1 billion. We filtered out stocks that have been listed on the ASX for less than 5 years to better compare historical data.

This doesn't mean these are the best stocks for you or your personal situation. Always do your own research and chat with a professional when in doubt.

How did we pick this list?

We use a proprietary algorithm that rates ASX-listed stocks based on price performance, profit, revenue and dividends. For more information about our methodology, head to our stock ranking page. The companies displayed on this page may not be the best for you and you're encouraged to do your own research. Investments can go up and down and we do not guarantee the performance of or returns of any investment.

Data last updated Sep 13, 2023.

Helia Group Limited (HLI.AU)

Helia Group Limited, together with its subsidiaries, engages in the loan mortgage insurance business in Australia. The company facilitates residential mortgage lending by transferring risk from lenders to lenders mortgage insurance (LMI) providers, primarily for high loan to value ratio residential mortgage loans; and portfolio of seasoned home loans.
  • Market cap: A$1.303 billion
  • YTD performance: 77.5%
  • 1-year performance: 65.12%
  • 5-year performance: 220.31%
  • P/E ratio: 4.9
  • Headquarters: Australia

Boss Resources Ltd (BOE.AU)

Boss Energy Limited explores for, develops, and produces uranium deposits in Australia. It holds a 100% interest in the Honeymoon uranium project covering an area of approximately 2,595 square kilometers located in South Australia.
  • Market cap: A$1.504 billion
  • YTD performance: 4034.03%
  • 1-year performance: 99.51%
  • 5-year performance: 11694.12%
  • P/E ratio: 119.66
  • Headquarters: Australia

Bellevue Gold Ltd (BGL.AU)

Bellevue Gold Limited, together with its subsidiaries, engages in the exploration and evaluation of gold properties in Australia. It holds a 100% interest in the Bellevue gold project covering an area of approximately 2,700 km2 located to north-west of Kalgoorlie, Western Australia.
  • Market cap: A$1.977 billion
  • YTD performance: 62.5%
  • 1-year performance: 84.78%
  • 5-year performance: 496.73%
  • Headquarters: Australia

L1 Long Short Fund (LSF.AU)

L1 Long Short Fund Limited is a equity fund launched and managed by L1 Capital Pty Ltd. The fund investments predominantly in Australian and New Zealand securities.
  • Market cap: A$1.76 billion
  • YTD performance: 22.39%
  • 1-year performance: 9.66%
  • 5-year performance: 305.72%
  • P/E ratio: 10.68
  • Headquarters: Australia

Azure Minerals Limited (AZS.AU)

Azure Minerals Limited engages in the exploration of precious and base minerals in Australia. The company primarily explores for nickel, cobalt, gold, and copper deposits.
  • Market cap: A$1.812 billion
  • YTD performance: 584.62%
  • 1-year performance: 1595.24%
  • 5-year performance: 7020%
  • Headquarters: Australia

Genesis Minerals Ltd (GMD.AU)

Genesis Minerals Limited engages in the exploration and development of gold deposits in Western Australia. It owns 100% interests in the Leonora Gold project located to the north of Kalgoorlie; 65% interest in the Barimaia Gold project located in the Murchison district of Western Australia; and St Barbara's Leonora assets comprising Gwalia underground mine and Leonora mill, as well as Tower Hill, Zoroastrian, Aphrodite, and Harbour Lights projects.
  • Market cap: A$1.93 billion
  • YTD performance: 2427.03%
  • 1-year performance: 90.82%
  • 5-year performance: 8804.77%
  • Headquarters: Australia

Pilbara Minerals Limited (PLS.AU)

Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia. The company primarily explores for lithium.
  • Market cap: A$10.865 billion
  • YTD performance: 296.56%
  • 1-year performance: 11.3%
  • 5-year performance: 2279.32%
  • P/E ratio: 4.52
  • Headquarters: Australia

Ramelius Resources Ltd (RMS.AU)

Ramelius Resources Limited, together with its subsidiaries, engages in the exploration, mine development and operation, production, and sale of gold in Australia. It operates through three segments: Mt Magnet, Edna May, and Exploration.
  • Market cap: A$1.95 billion
  • YTD performance: -7.03%
  • 1-year performance: 88.7%
  • 5-year performance: 286.59%
  • P/E ratio: 24.68
  • Headquarters: Australia

Emerald Resources NL (EMR.AU)

Emerald Resources NL engages in the exploration and development of mineral reserves in Cambodia and Australia. The company's exploration tenements include a combination of 100% owned granted licenses, applications, and earn-in and joint venture agreements covering a combined area of 1,239 square kilometers.
  • Market cap: A$1.744 billion
  • YTD performance: 200.58%
  • 1-year performance: 131.72%
  • 5-year performance: 9292.86%
  • P/E ratio: 25.09
  • Headquarters: Australia

Perseus Mining Limited (PRU.AU)

Perseus Mining Limited, together with its subsidiaries, explores, evaluates, develops, and mines for gold properties in West Africa. The company holds interests in the Edikan gold mine project located in Ghana; and the Sissingué and Yaouré gold mine projects located in Republic of Côte d'Ivoire.
  • Market cap: A$2.665 billion
  • YTD performance: 42.43%
  • 1-year performance: 23.28%
  • 5-year performance: 422.23%
  • P/E ratio: 6.2
  • Headquarters: Australia

Are stocks under $5 lower quality?

It's a common misconception that a higher price means a share is better quality.

Businesses with a higher share price are in many cases older, more established and have a long history on the ASX. While there's nothing wrong with buying these businesses, due to the size of the business/industry dominance, they might not have room to grow.

Remember in most cases over the long term, share price growth is a reflection of earnings growth. If a business keeps growing its earnings over time, its share price in theory will increase.

On the flip side, finding the right share under $5 could mean it is smaller but has a greater opportunity to grow. It could even take market share from the larger incumbents.

It is also not always the case that a smaller company based on its share price is in a worse position financially than larger businesses. In some instances it is simply the market mispricing a business. Once again though, it is important to find the right smaller company.

What to look for in stocks under $5

If you're looking to buy "cheap" stocks you should still follow the same investment formulas and investment themes that you would for any other stock. After all, when it comes to buying shares, you're investing your hard-earned money into a business that you hope will grow.

In order to understand a "fair value" for a share, there's a plethora of different metrics you can use.

It's important to remember each of these have their own limitations and few businesses will tick every single one of them.

Even if a business is on paper ticking every box it does not guarantee the price of the shares will rise.

But here are a few tips you can look out for:

  • Earnings per share (EPS): EPS is calculated by dividing company profits by the outstanding shares of common stocks. The valuation should give you an indication of a company's profits.
  • Price to earnings ratio (P/E ratio): In short the price to earnings for stock is how much the market is willing to pay today for a stock's past or future earnings. It is done by dividing a company's share price by its annual earnings per share. If for example a company is priced at $10 per share and its earnings per share is $1, then the P/E ratio would be 10/1 = 10. Theoretically, a lower P/E ratio means the company is cheap.
  • Price to sales (P/S): P/S is calculated for businesses that are not yet profitable. It is calculated by dividing the number of outstanding shares by the total sales or revenue over the last 12 months. The lower the P/S ratio, the more attractive the investment.
  • Profitability ratios: Not all businesses need to be profitable today to make for a good investment. But they need to have a path towards profitability. When it comes to measuring profitability, investors can use gross profits, operating profits, net profits, cash flow or even earnings before interest, taxes and depreciation and amortisation (EBITDA).
  • Debt ratio: This is especially important in a rising interest rate world. It is worked out by dividing the total debt by total assets. A debt ratio of greater than 1 suggests the company has more debt than its assets.

Buy stocks under $5 through an online broker

1 - 6 of 6
Name Product Price per trade Inactivity fee Asset class International
Finder AwardExclusive
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
CFD service. Capital at risk.
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
CMC Invest
Finder Award
CMC Invest
ASX shares, Global shares, Options trading, US shares, mFunds, ETFs
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 35,000 products, including shares, crypto, ETFs and managed funds, with access to 15 major global and Australian stock exchanges. Plus, buy Aussie shares for $0 brokerage up to $1,000. (Limited to one buy order per stock per trading day).
Moomoo Share Trading
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts (see link for details). T&Cs apply. Please note that additional pass-through fees and foreign exchange conversion spreads may also apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.
Tiger Brokers
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get 10 brokerage-free trades for the US or ASX market for the first 180 days and US$50 fractional shares when you deposit at least US$500. Plus, all new customers get 1 free trade per month for the first 12 months (T&Cs apply).
Get one brokerage-free trade per month for the first 12 months for US or ASX markets. T&Cs apply.
ASX shares, Options trading, US shares, ETFs
Earn US$100 in cash vouchers when you fund your new account and maintain a minimum balance of US$2,000 by Dec 29 until March 31, 2024. Plus, earn up to 5.3% p.a. interest on your US cash account (T&Cs apply).
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
IG Share Trading
Finder Award
IG Share Trading
ASX shares, Global shares, US shares, UK shares, ETFs
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian and international shares, plus get access to 24-hour customer support.

Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

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