Looking for stocks under $20 that could provide a good investment opportunity in 2024? You’ve come to the right place. In this article, we will examine some of the hottest stocks and hidden gems worthy of your consideration in the coming months.
The 7 best stocks under $20: Our top investment picks for 2024
In the following sections, we will examine some of the best investment opportunities in the stock market for shares that are priced below $20.
1. Ford Motor Company – The best monthly dividend stock under $20
Renowned for revolutionizing automobile manufacturing with the assembly line method, Ford produces a wide range of vehicles, including cars, trucks, and SUVs. Notably, the Ford F-Series has been a best-selling truck in the United States for decades. The company recently pivoted to electric vehicle manufacturing, a move that proved successful thanks to a large customer interest in Ford’s electric F-150 model.
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Why we picked it?
Ford faces stiff competition in the EV sector that’s currently dominated by Tesla and China-based giants like BYD, Nio, and Lucid. However, Ford’s F-150 Lightning has been a huge success, becoming one of the best-selling EVs in the US over the past couple of months.
In addition, Ford’s 10.33% dividend yield and relatively robust share price stability make it a lucrative option for long-term wealth building. In other words, a $10,000 investment in Ford could yield $1,073 in dividends over 12 months with reinvesting enabled, making Ford one of the best monthly dividend stocks under $20 you can buy right now.
2. Marathon Digital Holdings – A leading Bitcoin mining company
Marathon Digital Holdings is one of the largest cryptocurrency mining companies, focusing on securing the Bitcoin network. Established in 2010, it originally began as an IP licensing and management company but pivoted to cryptocurrency mining in 2017. The company is actively pursuing investment in green energy production of Bitcoin and is one of the leaders in the space.
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Why we picked it?
Marathon is aiming to significantly increase its hash rate (a measure of computing mining capabilities), aiming to reach 50 exahashes in the next two years. The increase is expected to boost Bitcoin production capacity, potentially impacting future revenue and profitability positively, making MARA one of the best Bitcoin mining stocks in 2024.
The company’s large market share in the Bitcoin mining sector is seen as a justification for its premium valuation when compared to its peers in the industry. In addition, Marathon Digital offers investors an alternative way to gain exposure to Bitcoin as its stock is closely correlated with BTC price.
3. Palantir Technologies – A big data-focused firm
Palantir Technologies is a software company that specializes in big data analytics. Founded in the early 2000s, Palantir develops software that integrates, manages, and secures data from disparate sources. Their platforms, Palantir Gotham and Palantir Foundry, are widely used in government, insurance, finance, and health sectors.
Buy Palantir Technologies Stock
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Why we picked it?
Palantir’s strong traction of its Artificial Intelligence Program (AIP) is likely to drive customer growth and rapid revenue expansion. Additionally, the overall growth in the AI sector, which has become the company’s major source of business, bodes well for Palantir’s future prospects.
The technical analysis data tracked by TradingView indicates that PLTR is currently a “Strong Buy”, which is underscored by growing revenue and net income, as well as a high research and development ratio of more than 18%.
4. Mitsubishi UFJ Financial Group – One of the world’s largest banks by AUM
Mitsubishi UFJ Financial offers a wide range of financial services, such as commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. With a significant presence in Japan, the United States, Europe, Asia/Oceania, and other international markets, MUFG serves retail and small and medium-sized enterprise customers, large corporations, and financial institutions.
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Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Mitsubishi UFJ guide.
Why we picked it?
Mitsubishi UFJ Financial is the 7th largest bank in the world, controlling $2.96 trillion in assets under management (AUM) as of 2022. The bank significantly increased its net income in the past 12 months, nearly reaching a $15 billion mark. In addition, the bank’s low P/E of just 7.58 could mean that the stock is trading below its fair market value.
5. Under Armour – A popular footwear brand
Under Armour specializes in performance apparel, footwear, and accessories. Known for innovation, the company offers a wide range of products for athletes and active consumers, sold through various channels, including retail stores and online platforms. Under Armour operates globally, emphasizing high-performance gear under multiple brand names, including HeatGear and ColdGear.
Buy Under Armour Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Under Armour guide.
Why we picked it?
Under Armour’s stock performance leaves a lot to be desired in terms of its yearly performance. The stock lost 30% in the past 12 months, and at first glance, it seems like a poor investment. However, the company’s financials tell a different story – Under Armour’s net income increased by nearly 30% in the past year, growing to $410 million.
In addition, the company’s low P/E of 8.35 and a market cap in low single digits indicate there could be a lot of room for growth in the medium to long term.
6. Harmony Gold Mining Company – A leader in gold mining
Harmony Gold Mining Company Limited is a South African gold mining and refining company that was established in the first half of the 20th century. As one of the leading gold mining companies, Harmony operates in South Africa and Papua New Guinea, focusing on gold extraction and related activities, including exploration, extraction, and processing.
Buy Harmony Gold Mining Company Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Harmony Gold Mining Company guide.
Why we picked it?
Harmony Gold Mining Company has displayed strong price performance and favorable valuation metrics compared to its competitors, with lower forward-looking P/E GAAP, EV/EBITDA, and EV/sales ratios. Gold’s long-term value and Harmony’s relatively low stock volatility might appeal to certain investors seeking diversification, especially those who want to gain exposure to gold and other precious metals.
Over the past 12 months, the company has reported a net income of $269 million and earnings per share of $0.44. In addition, the company has a very low price-to-earnings ratio of 14.1, which could indicate that the market is undervaluing the stock.
7. Nio – An up-and-coming Chinese EV manufacturer
Nio Inc., established in 2014 and headquartered in Shanghai, is a leader in the premium smart electric vehicle market. It designs, develops, and sells innovative electric vehicles and technologies, including battery swapping and autonomous driving services. NIO’s product line features smart electric SUVs and sedans, emphasizing technological advancements in electric powertrains and batteries.
Buy Nio Stock
Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Nio guide.
Why we picked it?
Nio is certainly not performing very well in the market recently. However, an investment in Nio is a high-risk, high-reward affair – if the EV manufacturer manages to get over the starter hump and penetrate the market to a larger degree, it could easily give Western EV competitors a run for their money.
Last August, Nio upgraded its manufacturing process, ramping up the production of its ES6 electric SUV to 300 per day, which could considerably boost the company’s revenue. Last year, Nio struggled to turn a profit, recording a net loss of over $3 billion, mostly due to high production costs and slow deliveries. We’ll have to wait and see whether manufacturing upgrades will prove enough to turn Nio’s financials around.
The bottom line: Investors eyeing stocks under $20 are spoiled for choice
There are literally hundreds of stocks trading in the sub-$20 range. While the low price of a stock could sometimes be an indicator of a company that has a lot of room for growth, it’s worth noting that the price of the stock itself is not necessarily representative of the company’s performance – sometimes, small and new companies have high priced stocks and established major companies have stocks trading in low single digits.
We’ve hopefully managed to demonstrate that there are quite a few stock investment options available in the sub-$20 range. If you want to explore other price levels, we suggest you take a look at the following articles:
For a more general overview of the best stock options, check our weekly updated list of the best stocks to buy.
*Technical analysis rating based on the last month of market data collected by TradingView.
Source: https://coincodex.com/article/37621/best-stocks-under-20/