Looking for the best stocks under $20 right now?
Luckily, there are plenty of great stocks on the market that can deliver long-term returns without breaking the bank.
We’ve rounded up some of the best low-priced stocks under $20 to add to your portfolio today.
Investing is one of the best ways to build your personal wealth and save money for retirement. However, not everyone has a huge amount of capital readily available to add to an investment portfolio.
Affordable stocks give people of all financial backgrounds access to the stock market.
No matter what your budget is, you can invest – there are so many great companies available at various price points.
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Best Stocks Under $20 To Buy
Newmark Group Inc. (NASDAQ: NMRK)
Newmark Group is a commercial real estate developer and management company based in New York.
Investors who want to bet on economic recovery should find this stock interesting.
While Newmark Group struggled throughout 2020, they are recovering in a big way as many companies want to come back into the office.
Their Q2 financial report blew investors away with massive revenue and EPS gains.
As a result, the company’s shares are currently trading at a year-long high.
Their price-to-earnings ratio is also very low right now, indicating that their share price is likely undervalued despite this growth.
Newmark has proven that they have what it takes to weather through tough economic times, making them an exciting pick in the real estate industry.
Ford Motor Company (NYSE: F)
Ford is an established American car manufacturer. They are based in Michigan and have been in business since 1903.
This stock has been on an upswing so far this year. Even with strong year-over-year growth, Ford stock currently has a low price-to-earnings ratio.
This means it could be undervalued, so now is a great time to pick up this stock at an affordable price.
Ford’s most recent earnings report was extremely promising. They managed to beat Wall Street estimates, and many top analysts have raised their year-long projections for this stock.
Consumers have been excited about Ford this year. This is likely due to their new electric vehicle line.
Climate change has become a huge global threat over the past few years, and consumers are looking for environmentally friendly form of transportation.
While there has been a lot of hype about electric vehicle startups, Ford is providing that they can compete in this market too.
They are launching the Ford F-150 Lightning, an all-electric version of their popular pickup truck.
This is just one of many electric vehicles that Ford F-150 plans on launching in the coming years. They’re also building a charging network throughout the United States, which will make it easier for the average consumer to own an electric vehicle.
One of the biggest challenges this company is facing is a forthcoming microchip shortage, which has pushed them to cut back on production of some of their new models.
This has caused this stock to dip slightly. However, the microchip shortage is likely to be temporary, and there’s still plenty of exciting things to come for this established car manufacturer.
Dividend Stocks Under $20
Arbor Realty Trust Inc. (NYSE: ABR)
Arbor Realty Trust is a real estate investment trust, or REIT.
REITs are a great place to look if you are interested in affordable stocks that still pay high dividends.
Because of the way they are structured, REITs are required to pay their shareholders significant dividends.
Arbor Realty Trust is based in New York and invests in single-family, multi-family, and commercial real estate.
They also are a lender and offer many different types of loans.
Right now, Arbor Realty Trust offers a massive dividend yield of 7.65 percent.
They are committed to providing good payouts for their investors and have already increased their dividend yield earlier this year.
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Their share price has steadily been improving since last year.
They also still have a low P/E ratio, indicating that this stock is likely well-valued.
Best Tech Stocks Under $20
Himax Technologies Inc. (NASDAQ: HIMX)
Himax is a Taiwanese semiconductor manufacturer. Semiconductors are a type of electronic component that are used in everything from laptops to smartphones to car interfaces and much more.
Semiconductors are an essential component of any smart electronic device.
Our society has become increasingly reliant on smart devices over the past several years. As a result, there is huge demand for semiconductors in manufacturing right now.
There have been some issues with supply shortages in the electronic manufacturing industry over the past few months, but this doesn’t seem to have affected Himax’s financials.
Their most recent earnings report indicated huge yearly growth in terms of revenue, profit margins, and net income.
Many of the world’s top semiconductor stocks are very expensive, but shares of Himax Technologies remain under $20 each.
This could be a good way for investors to buy into on the semiconductor trend without breaking the bank.
A10 Networks Inc. (NYSE: ATEN)
A10 Networks is a technology company based in San Jose, California. They offer secure remote application delivery services that use cloud technology.
Essentially, A10 Networks helps their clients make their systems available to employees or other relevant parties as needed.
This has helped many people work remotely over the last year and a half.
It’s become clear that remote and hybrid work are here to stay, regardless of social distancing restrictions. This means that A10’s services have been in high demand.
A10 has a wide-ranging portfolio of clients that generate multiple streams of revenue.
Notably, they have several government security contracts, which can be very reliable and very lucrative.
For Q2 2021, A10 Networks managed to beat their earnings expectations and post solid yearly growth numbers.
Financially, it looks like this company is moving in the right direction, and this is a market where they can continue to expand even further if necessary.
Their stock price has reflected this financial growth, as they are currently on a sharp upward trajectory.
Top Stocks Under $20
Carparts.Com Inc. (NASDAQ: PRTS)
Carparts.com sells aftermarket auto parts directly to consumers.
During the COVID-19 lockdowns of 2020, many people realized that they could repair their cars themselves instead of taking them to a shop. However, it can be difficult to find affordable parts that match your car.
Carparts.com solves that problem by creating a searchable library of auto parts that their customers can shop for.
They also offer delivery services, which have become particularly important during the pandemic.
The pandemic may be slowly drawing to a close, but consumers have gotten used to buying the things they need online.
Additionally, people are starting to drive more often, which means demand for car parts will go up.
Both of these things bode well for Carparts.com as we move forward this year.
This stock has done very well over the past year and a half. This is a direct result of increases in revenue and profitability.
There are a few things that look particularly good for Carparts.com.
First, many auto manufacturers have been struggling with a chip shortage recently. This means that consumers may opt to purchase used cars or fix their old ones instead of buying brand new.
Additionally, Carparts.com has used their profits from the past year to expand their distribution centers, which will enable them to continue expanding their business and deliver more for their customers.
Viavi Solutions (NASDAQ: VIAV)
Viavi Solutions is a communications company based in Scottsdale, Arizona.
They specialize in testing and assurance solutions for communications networks.
This is a company that could really benefit from the rollout of things like 5G phone networks or even fiber optic internet. This is because these new systems will need regular tests to provide consistent and reliable service.
While this is Viavi’s main source of income, they also have a variety of other products and services available.
In addition to working on commercial networks, they also work with the military and other government entities on network testing.
Having multiple sources of revenue is essential for long-term stability. Government contracts in particular can be very lucrative, and they also tend to be more stable than commercial contracts.
Viavi stock has performed very well this year, hitting a peak earlier in the summer. The increase in demand for 5G speeds could send this stock even higher in the future.
Should You Buy Stocks Under $20?
Buying stocks under $20 is a great way to get your portfolio started.
While these stocks may be affordable, they can still offer plenty of potential for future growth. This is especially true for businesses that are growing quickly and expanding to new markets.
All of the stocks listed in this article are priced between $10 and $20 per share.
While these are still cheap stocks, they have broken out of the ‘penny stock’ range. This means they’re likely to be a bit more stable than stocks that are priced under $10.
It’s always prudent to keep an eye out for growing stocks around this price point. Buying these stocks when they’re still affordable can sometimes result in huge gains later if the company’s growth pans out.
When choosing the best stocks under $20, take a look at the company’s business model, as well as key market data points.
Year-over-year revenue and earnings per share growth can indicate potential for share prices to keep going up.
You can also look at the stock’s earnings per share ratio to see if they are overvalued or undervalued in comparison to their most recent financial data.
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Best Stocks Under $20 Dollars: Final Thoughts
There are plenty of great stocks on the market that are currently trading for less than $20.
Many of these have the potential to break out of this range in the future if their momentum continues.
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