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3 Stocks Trading Near $5 With Massive Earnings Upside
Reported by Chris Markoch. Article Posted: 2/8/2026.
At a Glance
- Analysts expect these three stocks trading near $5 to deliver earnings growth of 74% to 150%.
- Each company has a near-term catalyst, including upcoming earnings reports.
- While volatile, these penny stocks offer asymmetric upside for risk-tolerant investors.
Although this earnings season has surprised some investors, historically earnings growth is a key driver of stock price appreciation. For calendar year 2026, FactSet forecasts S&P 500 earnings growth of 15%, well above the trailing 10-year average of 8.6%. If realized, that would be the third consecutive year of double-digit growth.
While forecasts look broadly bullish for 2026, some companies are expected to outpace the S&P 500 average by a wide margin. The MarketBeat stock screener is a free tool that can help investors filter for factors such as expected earnings growth over the next 12 months.
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Using that screener highlighted three stocks expected to grow earnings by at least 74%. Even better, each of these names trades near $5 and could be considered a penny stock. These equities are often highly volatile, but investors with appropriate risk tolerance and a longer time horizon may find attractive upside if the growth stories play out.
Offshore Drilling Recovery Fuels 100% Earnings Growth Outlook
Many offshore drillers and oil-services names have trailed the broader energy sector over much of the past five years, as the market has oscillated between supply and demand concerns. In 2026, however, conditions look more favorable for higher oil prices as demand begins to test available supply.
That is the case being made for Transocean Ltd. (NYSE: RIG), a provider of offshore contract drilling services to the oil and gas industry. Transocean's fleet is particularly well suited to the complex requirements of deepwater projects.
RIG stock is up more than 28% over the past 12 months, with much of that performance concentrated in the last three months. The shares are trading above the consensus price target of $4.55, and on Feb. 2 BTIG Research raised its price target to $6 from $5.
More notably, analysts forecast roughly 100% earnings growth for the company. That follows Transocean's first profitable quarter in five reported in November. The company is scheduled to report earnings on Feb. 19, an event that could validate the upbeat outlook.
Gold Miner Positioned for a Catch-Up Trade as Earnings Rise
B2Gold Corp. (NYSEAMERICAN: BTG) is the most defensive pick on this list. Analysts expect the company to grow earnings by about 74%. B2Gold is a junior miner headquartered in British Columbia with operations in multiple countries.
BTG shares are up roughly 86% over the past 12 months, yet mining stocks have generally lagged gains in the price of gold—an imbalance that could prompt a catch-up trade in 2026. The recent pullback in gold has not eliminated the longer-term catalysts that have been supporting precious metals, leaving room for miners like B2Gold to outperform.
Short interest in BTG remains a small share of the overall float but climbed sharply over the 30 days ending Feb. 5 as traders reacted to the sell-off in gold. Short sellers can sometimes be forced to cover quickly if commodity prices stabilize or company fundamentals improve.
B2Gold is scheduled to report earnings on Feb. 18. A stronger-than-expected release could confirm the upbeat forecast and help push the stock higher.
Biotech Penny Stock With 150% Earnings Growth Potential
Any list of penny stocks with sizable earnings upside will typically include a biotechnology name. One to watch is Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD), a commercial-stage biotech focused on treatments for gastrointestinal disorders.
At first glance, IRWD might seem expensive—trading about 20% above its consensus price target—but that target likely does not fully reflect the company's updated revenue guidance issued in January.
The company raised its top-line guidance by roughly 40%, prompting several analysts to increase their price targets. Ironwood must still execute—one of its key drugs is entering a Phase 3 trial this year—but analysts project about 150% earnings growth over the next 12 months, suggesting the current share price may be undervalued if the company hits its targets.
All three picks share a common theme: sizable expected earnings growth coupled with elevated volatility. Investors should do their own due diligence, consider position sizing carefully, and be prepared for short-term swings when trading low-priced, high-upside stocks.
Garmin Jumps on Guidance, Then Doubles Down on Buybacks and a Bigger Dividend
Reported by Thomas Hughes. Article Posted: 2/20/2026.
At a Glance
- Garmin’s Q4 strength and 2026 guidance support a continued capital return story, including a higher dividend and a new buyback authorization.
- The article links Garmin to AI through its device-generated datasets, framing data as a strategic asset even if Garmin isn’t an “AI pure play.”
- Valuation is elevated, but analyst and institutional sentiment—plus technical levels—are positioned as key signals for the next move.
Garmin Ltd. (NYSE: GRMN) matters to the AI landscape, and its capital-return plan underscores that role. The company isn't leading AI research so much as embedding AI into its products and services, delivering practical utility to users. Garmin's devices continuously generate large, high-quality datasets—biometrics, GPS, mapping and telemetry—which are valuable both for training models and for running inferences with existing models, further entrenching the business in the AI ecosystem.
How do capital returns reflect the company's position and AI relevance? By increasing them. Garmin proposed a 17% year-over-year (YOY) increase in distributions for fiscal year 2026 (FY2026) and authorized a new $500 million share-repurchase program. That repurchase amount represents more than 1% of the pre-release market cap, signaling continued dilution-offsetting buybacks in 2026. The dividend yields about 1.6% as of mid-February, is covered at under 45% of consensus earnings, and the payout increase is accelerating.
Garmin Performs at Peak Fitness, Guides for Winning Year in 2026
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Garmin capped a record-setting year with a robust fourth quarter, growing revenue 17% to more than $2.1 billion. The top line outperformed expectations by 550 basis points, supported by broad demand across segments. While Outdoors and Automotive OEM were the weaker spots—flat or slightly down year over year—both showed full-year growth in FY2025 and are expected to perform better in FY2026. Other areas, including Fitness, Aviation and Marine, grew at roughly 42%, 16% and 18%, respectively, driven by new product launches and end-market demand.
Margin performance was strong as well. Gross margin contracted by 10 basis points but was more than offset by 60 basis points of operational improvement. As a result, operating income rose about 19%, leaving adjusted earnings at $2.79, up 16% YOY and roughly 1,700 basis points ahead of MarketBeat's reported consensus. Free cash flow came in at $430 million, supporting an approximately 50% capital-return payout ratio and further strengthening the balance sheet.
Even more important to investors was Garmin's outlook for 2026. The company guided revenue and earnings to ranges well above consensus, forecasting nearly 10% top-line growth and earnings that sustain the capital-return plan while enhancing shareholder value.
Analysts and Institutions Buy Into Garmin's Value Proposition
Garmin isn't a bargain in 2026, trading at roughly 27x current-year forecasts—above the broad market average. That premium, however, reflects a solid growth outlook that assumes a high-single-digit to low-double-digit EPS compound annual growth rate over the next decade. Under that scenario, Garmin would trade at about 12x its 2035 forecast, implying the potential for the stock to roughly double over that period.
Analysts and institutional activity indicate confidence in that narrative. MarketBeat data shows a Moderate Buy rating and an upward trend in price targets. The high-end target is pegged at $310, which implies roughly 20% upside from current levels and may be conservative. Analysts' revisions are likely to lift that high-end target further as the year progresses, and the technical setup suggests a move to $320 or higher could be possible.
Institutional investors provide an even stronger tailwind, owning more than 80% of the stock and buying on net in Q1 2026. This cohort has accumulated shares over the past three years, underpinning the long-term uptrend and stepping up activity when prices pulled back in 2026. The takeaway: the market has meaningful support to limit downside and a tailwind to lift prices on rallies.
Garmin Surges on Guidance, Cash Flow, and Capital-Return Outlook
Garmin's share price jumped more than 10% after its Q4 release, confirming support at key moving averages and triggering trend-following entry signals. That surge pushed the stock above prior support targets and to record highs, which makes immediate entry riskier, even though the longer-term trend appears constructive. Potential entry triggers include a retest of support near $220 or a breakout to new highs.
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