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.
In addition to stocks under $20, we have also compiled the best stocks under $50, $10, $5, $2, and $1. 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
JetBlue Airways Corporation (NASDAQ: JBLU)
JetBlue Airways is an affordable airline based in New York City, with flights all over the United States, Central America, and South America. Some of their notable focus cities include New York City, Boston, Los Angeles, Orlando, and San Juan.
After a pandemic-induced slump, travel is finally starting to come back in a big way. Many consumers are starting to book their first flights after a year of traveling, and stocks like JetBlue are reaping the rewards.
JetBlue’s business model is particularly effective for the current situation. They focus on low-cost flights, which are particularly attractive right now given the current recession.
Additionally, they offer flights from many large U.S. cities to popular vacation hubs. It appears that leisure travel will likely return much faster than business travel, so focusing on these cities can help JetBlue generate consistently strong revenue.
JetBlue Airways stock has been performing fairly well over the past year. Growth has been slow but steady. Right now, their shares are valued at just under $20 each. This makes them more affordable than many other low-cost airline stocks in the U.S.
General Electric Company (NYSE: GE)
You probably already know the name General Electric – they have a long history of making household appliances. However, they have a very broad range of operations beyond consumer products. They’re involved in healthcare technology, aviation, renewable energy, industrial power, and much more.
GE has long been a Fortune 500 company, but they’ve struggled financially over the past year or so. As the company lost profitability, their stock price slowly dropped. However, now could be the right time to buy as the company is on their way back up again.
Over the past few years, the company has made a concerted effort to reduce their debt and streamline operations. They’ve shifted their focus to the sectors of their business that have the most potential moving forward, most notably renewable energy and aviation.
GE has a long history of weathering economic ups and downs. This could be a good stock to add to your portfolio for the long run, especially as the stock is on its way up right now.
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Dividend Stocks Under $20
Physicians Realty Trust (NYSE: DOC)
If you’re looking for strong dividend yields, one of your best options is to invest in REITs. REITs, or real estate investment trusts, typically come with very high dividend yields because of the way they are structured.
Physicians Realty Trust is a REIT that owns medical office space. They lease this office space to healthcare providers throughout the country. They’ve seen consistent revenue growth over the past several years, even with the challenges of the pandemic.
Medical care is essential, which means demand for this type of office space is likely to continue into the future. Many patients prefer to have their appointments in these outpatient offices rather than in hospitals, and many healthcare systems have taken note.
Right now, Physicians Realty Trust has a dividend yield of 5.01 percent, which is very high. This high dividend yield means it will generate income regardless of the stock’s return.
Best Tech Stocks Under $20
Flex Ltd. (NASDAQ: FLEX)
Now looks like a great time to invest in this electronics manufacturing company. They make a huge variety of equipment, ranging from parts for consumer electronics to industrial parts.
Flex was founded in 1969 and is based in Singapore. They are one of the largest electronics manufacturers globally and have a market cap of over $9 billion. As the pandemic is coming to an end and the global economy is picking up, there’s huge demand for the technologies that Flex makes.
One of the things that makes Flex an exciting pick is that they are involved in so many different industries. Right now, they’re involved in everything from 5G communications to solar energy and much more.
Having a diverse portfolio of operations is very important, especially for a large company like Flex. Even if one sector is struggling, the other operations can manage to pull them back up, especially during tough economic times.
While Flex stock struggled during the pandemic, their share price has since recovered. They are up roughly 300 percent from their low point last March.
As a society, it’s likely that we’re going to continue demanding new electronics. Flex is an established manufacturer that can likely hold up to long-term scrutiny.
Himax Technologies (NASDAQ: HIMX)
Himax Technologies is a Taiwanese semiconductor company. They make parts for some of our most essential electronic devices, like smartphones and computers.
Most notably, they make parts for AI devices. These include LCOS chips and depth-sensing cameras. There has been plenty of interest in AI technology in recent years, and we’re only just starting to explore everything that AI has to offer. AI has so many potential applications in everything from business to entertainment to education.
Himax Technologies is in the perfect position to benefit from increased demand for AI technology. Top tech companies like Google and Microsoft use their AI parts.
This stock’s share price remained under $5 for most of 2019 and 2020. However, it started to break out of that range in December 2020. Not only has their stock price continued to push upward, but it also comes with a 2.07 percent dividend yield.
The semiconductor industry as a whole has been performing very well as of late. Many semiconductor stocks are trading at very high prices, but Himax Technologies is an affordable way to invest in this industry.
The company is expected to report earnings at the beginning of May. Analysts expect strong year-over-year growth. If this is true, then it could send Himax shares even higher.
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 out of the pandemic.
This stock has really shot up in price over the last year. In April 2020, they were trading for less than $3 per share. Now, this stock is worth over $16 per share.
Much of this growth is due to dramatic increases in revenue over the last year. Recent financial data has given Wall Street confidence in this stock as it grows.
Not only did revenue go up last year, but Carparts.com also became much more profitable. This means that management will be able to reinvest that money in the business with a growth mindset.
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.
Viavi’s stock has been steadily increasing in price since September 2020. However, there’s still plenty of room for this stock to grow and even potentially break out of the $20 range 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.
Most 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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