There are plenty of great stocks on the market that can deliver long-term returns without breaking the bank. But one question still remains: are they worth the risk? Read on to see some of the best stocks under $20 that you can use to expand your portfolio.
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. Multiple revenue streams are 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, but share prices are down a bit at present. Newmark Group’s price-to-earnings ratio is also relatively low right now, indicating that its share price is likely undervalued despite this growth.
In fact, the company just recently announced the biggest office investment trade completed in Silicon Valley. It sold its Moffett Green property, a fully-leased trophy campus worth more than $535 million.
Many Wall Street analysts expect Newmark stock to return to growth in short order. Newmark has proven that it has what it takes to weather tough economic times, making it an exciting pick in the real estate industry.
Now may be the perfect time to buy while share prices are hanging low.
BBQ Holdings Inc. (NASDAQ: BBQ)
BBQ Holdings represents several restaurant brands that thrive in the barbeque space. The company has eight brands, including Famous Dave’s, Granite City Brewery, and Bakers Square.
Famous Daves, the flagship restaurant chain, opened its first restaurant in Minneapolis in 1995. This restaurant chain alone has 180 locations throughout the United States.
BBQ Holdings is not shy about acquiring new businesses, completing the purchase of Village Inn and Bakers Square in July of last year. This forward momentum is backed by strong financial success, seeing a 70% increase in revenue during the last quarter.
The company also purchased four new Famous Dave’s restaurants and the Tahoe Joe’s Steakhouse brand. Together with an increase in dine-in traffic across its brands, these factors contributed to the rise in revenue year over year.
Share prices are pretty steady compared to last year at this time, but BBQ Holdings is placed well to see more growth.
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, primarily due to changing regulations in Europe. With those under wraps, Orange has started to see positive momentum once again.
Although the company lost some revenue in Europe, it more than made up for it in its other regions. However, the company is looking to bounce back.
From a commercial standpoint, the company is realigning its leadership in convergence with 11.6 million subscribers across Europe, thanks to improvements in customer satisfaction.
As evidenced by the lower churn rate across Europe and the performance of its fiber network, over half of the company’s fixed-line customers in France are now connected.
In the face of the resurging inflation, Orange is taking all necessary steps to reaffirm its financial goals for 2022, a key milestone on the road to meeting its 2023 promises. Looking ahead, this potentially serves as a great time to buy before prices climb much higher.
In addition to an opportunity for growth, Orange also has an impressive 6.03% 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 the company 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 $48 billion market cap and pays out a 6.10% dividend yield. Currently, at $15.49 per share, VOD stock also has a $23 price target.
Share prices have been on a roller coaster ride of late, but catching Vodafone at a good time could result in major gains.
Everi Holdings Inc. (NYSE: EVRI)
Everi Holdings is known for providing technology solutions to casinos and the gaming industry. The technology company seeks to use these innovations to bring new experiences to players through a wide variety of gaming machines.
Alongside physical machines, Everi also has an online server where it hosts online gambling opportunities. In addition, Everi has a range of ATMs and cash kiosks from a merger with CashClub in 2015.
A lucrative deal with Exacta Systems has enabled Everi to enter into the horse racing scene as well. Share prices are pretty quiet at present, sitting a little lower than last year at this time.
The company has seen consistent revenue and net income gains to back up its push to expand through innovation and physical locations. It actually saw its stock rise by 12.7% recently after announcing its first-quarter earnings.
Revenue climbed 26% year over year in the first quarter, thanks to the company’s recurring revenue sources. The financial results for the quarter came far above analyst expectations.
Management stated that it still anticipates top-line growth for the entire year. In addition, the business raised its adjusted EBITDA projection. It may be worthwhile to grab hold of Everi now as shares look to start rising again.
Top Stocks Under $20
Embraer (NYSE: ERJ)
Embraer is a Brazilian manufacturer of smaller regional aircraft and private jets. These planes see flight for commercial use as well as for purposes of defense and security. The company got its start some 50 years ago and now has aircraft in several countries around the world.
The team behind Embraer’s commercial aviation platform has recently reintegrated its central systems to offer a more streamlined approach to business. Although Covid has had a profound impact on the airline industry, Embraer continues to grow.
Share prices slumped since the beginning of the year, possibly due to a loss in revenue during the previous quarter. If Embraer gets revenue numbers back on track, share prices could soar high once again.
Despite the COVID-19-related slowdown, it has already received enough orders to achieve the high end of its anticipated earnings forecast for the current financial year.
Embraer had massive income declines owing to the pandemic and a failed contract for Boeing Co to take over its commercial aviation segment in early 2020. Thus, the company was obliged to recombine the division.
The most recent news comes only weeks after Embraer confirmed its financial estimate for 2022 on April 28, predicting revenue of $4.5 billion to $5 billion. Consider investing today if you’re prepared to take off with this aircraft manufacturer.
Vector Group Ltd. (NYSE: VGR)
Vector Group is a unique mishmash of tobacco products and real estate. As a holding company, it has two subsidiaries that manage each of these spaces. Liggett Vector Brands manufactures and sells tobacco throughout the United States, with brands like Grand Prix, Pyramid, and Eve.
New Valley controls real estate properties in select locations all over the country. Together, these subsidiaries saw a boost in revenue in the first quarter of 2022 alongside an uptick in income.
Vector Group has a modest top-line growth trend and had a strong first-quarter performance. Total revenue increased 15% year over year to $312 million, owing to continued growth in the core tobacco sector, which accounted for 99% of total sales.
Management anticipates long-term cigarette sales volumes to drop due to health concerns, government regulations, and fading cigarette attractiveness. Still, Vector Group can profit from its strong pricing power.
Because tobacco products are habit-forming, manufacturers may raise prices without suffocating demand. This allows them to boost revenue and profits even while overall sales volume drops.
Share prices are trending upward as well, sharing in the benefits of growth. If that wasn’t enough, Vector Group pays out dividends at 6.49% to shareholders.
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.
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.
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 currently trading for less than $20. Many of these can potentially break out of this range in the future if their momentum continues.
Stocks Under $20 FAQ
Below are answers to some of the most commonly asked questions about stocks under $20.
What Are the Best Stocks Under $20?
Real estate developer Newmark continues to fare well on the stock market, and European communications companies Vodafone and Orange are set to make a comeback in the coming months.
BBQ Holdings, Everi Holdings, Vector Group, and Embraer are other strong contenders.
What Are the Best Stocks Under $10 Right Now?
Stocks under $10 are great for starter portfolios. Our best stocks under $10 article showcases our top choices for stocks under $10 on the market today.
Spoiler alert: Crescent Point Energy and Hudbay Materials are looking strong as 2022 begins.
What Stocks Are Good for Beginners?
Beginners should consider investing in high-quality companies with a history of profitability and strong management. While no stock is completely safe, some offer more stability than others.
We believe each stock on this list is a strong pick, as they are all well-established and trade on the major exchanges.
How Do Beginners Buy Stocks?
The best way for beginners to buy stocks is to find a reputable online broker and open an account. Anyone new to the stock market can jump on a platform like Robinhood and start trading fast. Robinhood, in particular, is designed to be simple to use and easy to understand.
Is Robinhood Safe?
Robinhood is an entirely safe trading platform to use, especially for beginners. It has been built with security in mind, and your funds are well-protected up to $500,000. The site is also commission-free and has a good customer service team.