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The 7 Best Stocks Under $20 To Buy For January 2022!

Sarah Foley - December 29, 2021

best stocks under $20

There are plenty of great stocks on the market that can deliver long-term returns without breaking the bank. Read on to see some of the best stocks under $20 that you can use to expand your portfolio.

Investing is one of the best ways to build your wealth and save money for retirement.

However, not everyone has a considerable amount of capital readily available to add to an investment portfolio.

That’s why many investors are on the lookout for cheap stocks that also offer a lot of value.

Cheap Stocks Trading at $20 or Less

Lower-priced stocks give people of all financial backgrounds access to the stock market.

In addition to stocks under $20, we have also compiled the best stocks under $50 and $10.

If you’re in the market for penny stocks, we recommend looking at our picks for $5$2, and $1.

No matter your budget, 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.

The company owns properties all over the United States and has an international presence as well.

While its main focus is commercial real estate, it also has a robust portfolio of multi-family residential properties.

Having multiple revenue streams is essential for any company, as a diverse portfolio can help keep a business afloat during tough economic times.

Newmark has fared well throughout 2021 with some impressive growth.

Share prices have jumped over 155% are trading at all-time highs.

Its Q3 financial report blew investors away with massive revenue and EPS gains, and other key growth metrics have also been strong.

Newmark Group’s price-to-earnings ratio is also quite low right now, indicating that its share price is likely undervalued despite this growth.

Many Wall Street analysts are expecting Newmark stock to keep growing, even after this huge boom.

Newmark has proven that it has what it takes to weather tough economic times, making it an exciting pick in the real estate industry.

 

stocks under $20

 

United Microelectronics Corp (NYSE: UMC)

United Microelectronics specializes in microchip technology and is based in Taiwan.

The company has a worldwide presence with several offices in Asia, Europe, and the United States.

There’s been a large-scale shortage of microchips used in cars, appliances, and similar technologies throughout 2021.

This spells a low supply of these products but a very high demand for microchips.

United Microelectronics is capitalizing on that demand and expects to do well for itself as a result.

Its share prices have seen a 35% increase this year and continue to be trending upwards.

With no end to the shortage yet in sight, estimates put United Microelectronics reaching record-high revenue numbers in the very near future.

Best Dividend Stocks Under $20

Orange SA (NYSE: ORAN)

Orange is a provider of communication products and services in Europe, Africa, and the Middle East.

Headquartered in France, the company has a presence in 18 different countries.

These products and services reach some 266 million customers throughout those regions.

Orange has gone through some rebranding over the years but has never lost its focus in telecom.

Share prices have been down of late, largely due to changing regulations in Europe.

With those under wraps, Orange is primed to start growing again.

Although the company lost some revenue in Europe, it more than made up for it in its other regions.

Looking ahead, this potentially serves as a great time to buy at a low.

In addition to an opportunity for growth, Orange also has an impressive 8.77% dividend.

Best Tech Stocks Under $20

Vodafone Group PLC (NASDAQ: VOD)

Founded in 1982, Vodafone is a major telecommunications provider in Europe, Africa, and Asia.

The company represents the most extensive 5G network in Europe, providing the service to a dozen different countries.

Through a Fintech platform, Vodafone can provide wireless connectivity to more than 42 million people in Western Africa.

The communications giant also dabbled in internet security and operates one of the top digital TV platforms in all of Europe.

Such diversity in its portfolio helps Vodafone create fresh areas of growth throughout its network.

Vodafone sits on an impressive $40 billion market cap and pays out a 10.47% dividend yield.

The stock, currently at $15 per share, also has a $20 price target.

Although share prices are a bit down this year, investors are optimistic that things are looking up for 2022.

Now might be the time to get involved before things start ramping up.

 

stocks under $20

 

Palantir Technologies (NYSE: PLTR)

Palantir Technologies looks to put the right information in people’s hands, helping them to overcome challenging problems and succeed.

To do so, the company makes products for human-driven analysis of real-world data.

Using analytics, Palantir processes big data from companies and adapts its technology to provide what those businesses need.

Such technology is still foundational and has only begun making an impact in the world around us.

This tech is currently seen in Covid research and satellites orbiting the Earth.

Share prices this year alone have been on a bit of a roller coaster, but five-year numbers show an overall upward trend.

Palantir consistently shows favorable revenue numbers and pulled in significant income this last quarter alone.

If the company continues to expand and show positive financials, it won’t be long before we see Palantir everywhere.

Top Stocks Under $20

SoFi Technologies Inc. (NASDAQ: SOFI)

SoFi made a splash earlier this year when it went public via a SPAC.

The fintech company is based in the San Francisco area and offers a variety of products, such as personal loans, home loans, and student loan refinancing.

While Sofi started as a lender, it has rapidly expanded its services to offer investing, credit cards, and insurance policies.

SoFi has been able to stand out from the competition by appealing to younger consumers, as many of its products are available via an easy-to-use mobile app.

With over 2.5 million members, $22 billion in debt paid off, and $60 billion in funded loans, SoFi is making a real impact.

Although not profitable yet, Sofi’s year-over-year revenue growth has been very impressive.

SoFi stock has been on a bit of a roller coaster but still sits 30% up from last year at this time.

While there’s a lot to love about Sofi, its stock hasn’t consistently broken out of the $20 range yet.

This shouldn’t discourage investors — this is a great time to buy into this promising company while it’s in a slight dip.

stocks under $20

PG&E Corp (NYSE: PCG)

The Pacific Gas and Electric Corporation is based out of San Francisco and provides electricity and natural gas to Northern and Central California.

It has been doing so since 1905 and serves residential areas and businesses from small to large.

PG&E currently boasts over 5.5 million electric customer accounts and 4.5 million users of natural gas.

As the company moves forward, it is looking more and more into clean ways of producing energy for the region.

The company is also looking to capitalize on the push toward electric vehicles by providing thousands of new charging stations.

After a bit of a slog through the summer months, PG&E stock rebounded strongly with rises since August.

At just $12 per share at the moment, this may be an outstanding stock to grab now for those looking for long-term gains.

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 snowballing and expanding to new markets.

While these are still cheap stocks, they have broken out of the “penny stock” range, meaning that they’re likely to be a bit more stable than stocks priced under $5 or $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 the 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.

Where to Buy Stocks Under 20 Dollars

It is possible to find stocks in the $10 to $20 range on the OTC market, but these tickers are generally more volatile and harder to predict.

Instead, invest in stocks with more stability on major exchanges like NASDAQ and the NYSE.

Both Robinhood and Webull are platforms that search only on these more selective exchanges.

Robinhood has an easy-to-use interface for those who need a more straightforward approach to trading.

Webull, on the other hand, is more complex and best reserved for traders with more experience.

In either case, these platforms can help lead you to the best stocks under $20 that can reward you with some nice gains.

Best Stocks Under 20 Dollars: Final Thoughts

There are plenty of great stocks that are currently trading for less than $20.

Many of these can potentially break out of this range in the future if their momentum continues.

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Sarah Foley is a freelance content writer based in Chicago. She covers finance as well as real estate, technology, pop culture, and more.