There are plenty of great stocks on the market that can deliver long-term returns without breaking the bank.
Companies trading under $20 are a more affordable alternative to well-established stocks and can still provide a long runway for profit.
These stocks have already proven they have what it takes to grow while, in most cases, not carrying more risk than their larger counterparts. Some even pay dividends or listed options.
At this share price point, there are stocks from all sectors, opening the door to countless opportunities for returns and diversification.
If you want to learn a little more about investing before diving into our stock recommendations, check out our Beginner’s Guide to Investing.
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 Now (Recently Updated)
Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc., is a commercial real estate developer and management company based in New York. The company owns properties across the United States and has an international presence as well.
Its main focus is commercial real estate, but it also boasts a robust portfolio of multi-family residential properties. This diversification is crucial for maintaining stability during tough economic times.
Newmark’s recent strategic investments and acquisitions highlight its growth potential. The company continues to expand its footprint with notable transactions like the sale of its Moffett Green property in Silicon Valley.
Such high-value deals underscore Newmark’s strong market position and its ability to leverage valuable assets effectively.
Analysts often see Newmark as a key player in the real estate sector, poised for long-term growth.
With its diversified portfolio and strong market presence, Newmark Group could offer investors a stable investment opportunity under the $20 mark.
BBQ Holdings, Inc. (NASDAQ: BBQ)
BBQ Holdings, Inc., represents several well-known restaurant brands thriving in the barbecue space.
The company includes popular names like Famous Dave’s, Granite City Brewery, and Bakers Square. Famous Dave’s, the flagship restaurant, has been a staple since 1995, with numerous locations nationwide.
BBQ Holdings is known for its strategic acquisitions, continually expanding its brand portfolio. Recent purchases include Village Inn and Bakers Square, which have bolstered the company’s market share and revenue growth.
This proactive approach has helped BBQ Holdings maintain steady growth despite industry challenges.
The company’s focus on innovating and expanding positions it well for future success.
With an increasing number of locations and a diverse range of brands, BBQ Holdings could offer traders a promising opportunity for long-term returns.
Best Dividend Stocks Under $20
Orange S.A. (NYSE: ORAN)
Orange S.A. stands out as a key provider of communication services across Europe, Africa, and the Middle East.
With its headquarters in France, Orange has built a robust presence in 18 countries, reaching around 266 million customers.
Despite some regulatory challenges in Europe that have affected its revenue, the company has shown resilience and adaptability.
The telecom giant’s recent strategic realignment has led to improved customer satisfaction and lower churn rates, particularly across Europe.
Notably, over half of Orange’s fixed-line customers in France are now connected via its fiber network.
Orange’s efforts to reaffirm its financial goals amid inflationary pressures and its impressive dividend yield make it a compelling choice for dividend investors.
With the company’s strategic initiatives and growing market share, now might be an opportune time to consider Orange. It maintains steady income and may be one of the best dividend stocks on the market.
Best Tech Stocks Under $20
Vodafone Group Public Limited Company (NASDAQ: VOD)
Founded in 1982, Vodafone is a powerhouse in telecommunications, operating the largest 5G network in Europe.
The company’s extensive network spans Europe, Africa, and Asia, offering services that include wireless connectivity to millions in Western Africa via its Fintech platform and one of Europe’s top digital TV platforms.
Vodafone’s diversified portfolio allows it to explore new growth avenues and maintain a solid market share.
With its strong market cap and substantial dividend yield, Vodafone is positioned well for both stability and growth.
Despite recent fluctuations, the company’s strategic investments in 5G and internet security highlight its potential for significant long-term returns.
Investors might find Vodafone attractive due to its innovative services and extensive market reach.
The company’s commitment to expanding its network and improving its services ensures it remains a formidable player in the telecommunications industry.
Everi Holdings Inc. (NYSE: EVRI)
Everi Holdings Inc. is a dynamic technology company that caters to the casino and gaming industry.
Known for its gaming machines and online gambling platforms, Everi leverages innovative technology to enhance the gaming experience.
Additionally, the company’s financial technology solutions, including ATMs and cash kiosks, further diversify its offerings.
Everi’s strategic moves, such as its partnership with Exacta Systems to enter the horse racing industry, underscore its commitment to growth and innovation.
The company has consistently reported strong revenue and net income gains, supported by its recurring revenue sources and expanding market presence.
With a focus on technological advancements and strategic partnerships, Everi Holdings presents a promising investment opportunity.
Its ability to generate consistent revenue and adapt to new markets might make it an attractive choice for those seeking tech stocks with long-term growth potential.
Top Stocks Trading Under $20
Blue Owl Capital Inc. (NYSE: OWL)
Blue Owl Capital Inc. is a leading asset management firm specializing in direct lending and capital solutions.
The company focuses on providing financing to middle-market companies, helping them achieve their strategic goals.
Blue Owl’s expertise in direct lending and its emphasis on long-term partnerships position it as a valuable player in the financial sector.
The firm’s robust market position and strategic investments highlight its potential for growth.
Blue Owl’s adaptability to market conditions and ability to offer tailored financing solutions ensure its relevance and success in the long term.
Traders looking for a reliable financial stock with strong growth prospects might find Blue Owl Capital a compelling option.
Vector Group Ltd. (NYSE: VGR)
Vector Group Ltd. combines the tobacco and real estate sectors under one roof, making it a unique investment opportunity.
Through its subsidiary Liggett Vector Brands, the company manufactures and sells various tobacco products in the United States.
Another subsidiary, New Valley, manages a diverse portfolio of real estate properties across the country.
Vector Group’s dual strategy allows it to mitigate risks associated with each sector while capitalizing on growth opportunities.
The company’s strong pricing power in the tobacco sector and strategic real estate investments contribute to its overall financial stability.
Despite challenges in the tobacco industry, Vector Group’s ability to adapt and innovate positions it well for long-term growth.
Investors might find Vector Group appealing due to its diversified revenue streams and attractive dividend yield.
The company’s strategic approach and commitment to growth make it a solid choice for those looking to invest in stocks under $20.
Should You Buy Stocks Under $20?
Buying stocks under $20 can be an excellent way to start building your investment portfolio without needing high initial capital.
While these stocks are more affordable, they often still offer substantial growth potential, especially for companies expanding into new markets or developing innovative products.
Investing in these stocks can yield significant gains if the companies continue to grow and perform well.
Though these stocks are cheap, they have moved beyond being considered penny stocks, suggesting a degree of stability.
It’s prudent to keep an eye on these stocks as they may offer substantial returns if their growth trajectory continues.
When selecting the best stocks under $20, consider the company’s business model and key market indicators, such as potential for growth, market cap, and innovative strategies.
Lower-priced stocks provide access to the stock market for investors of all backgrounds.
In addition to exploring stocks under $20, you can also consider companies at higher prices in our stocks under $50 article.
For those interested in penny stocks, look into our recommendations for stocks under $5, under $2, and under $1. Regardless of your budget, there are plenty of great companies available at various price points.
Where to Buy Stocks Under 20 Dollars
Finding reliable stocks in the $10 to $20 range is easier on major exchanges like NASDAQ and the NYSE, compared to the more volatile OTC market.
Platforms like Robinhood and Webull can help you find these stocks. Robinhood offers an easy-to-use interface suitable for beginners, while Webull provides more advanced tools for experienced traders.
Both platforms focus on stocks listed on major exchanges, providing stability and easier access to investments.
Here’s a list of features to look for when searching for the best stocks to buy under $20:
-
Check Out the Bottom Line: Look for companies with solid financials, including stable revenue, controlled expenses, and strong cash flow. Companies with sound financial management are better positioned to weather economic fluctuations and continue to grow.
-
Popular Goods or Services: Invest in companies that offer products or services in high demand. A company with innovative products that capture market share is more likely to see sustained growth and profitability.
-
Expert Opinions: Consider the assessments and forecasts of financial analysts. Positive reviews can draw significant attention and investment interest, potentially driving up share prices.
-
Excellent Leadership: Strong leadership is crucial for executing business strategies and driving company growth. Ensure the company has a capable and visionary leadership team.
-
Good Growth Potential: Evaluate whether the stock has the potential to grow beyond its current price. Companies with strong growth prospects and strategic investments are more likely to see their share prices increase over time.
Best Stocks Under 20 Dollars: Final Thoughts
There are many promising stocks trading for less than $20. These stocks offer investors the chance to capitalize on growth opportunities without a substantial initial investment.
Keep an eye on these stocks, as many could break out of this price range if their momentum continues.
Stocks Under $20 FAQ
What Are the Best Stocks to Buy Under $10 Right Now?
For those starting their portfolios, our best stocks under $10 include top choices like Crescent Point Energy and Hudbay Materials.
What Stocks Are Good for Beginners?
High-quality companies with a history of profitability and strong management are ideal for beginners. Our list includes well-established stocks that trade on major exchanges, offering stability and growth potential.
What Are Earnings and Why Are They Important?
Earnings represent a company’s profit over a specific period, usually reported quarterly. They are crucial because they indicate the company’s profitability and financial health.
Positive earnings can attract investors and drive the stock price higher, while negative earnings might lead to a decline in stock value.
How Do Beginners Buy Stocks?
Beginners can start by opening an account with a reputable online broker like Robinhood, which is designed to be simple to use and easy to understand.
Is Robinhood Safe?
Robinhood is a safe trading platform, especially for beginners. It offers robust security, commission-free trading, and strong customer support, with funds protected up to $500,000.