10 Best Affordable Stocks Under $20 to Buy

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1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Stock Price: $17.48

Forward P/E: 7.09

Number of Hedge Fund Holders: 72

Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.

J.P. Morgan analyst Chris Schott upgraded the rating on Teva Pharmaceutical Industries Limited (NYSE:TEVA) to a Buy on May 12, setting a price target of $23.00. The analyst stated that the company’s recent cost-cutting initiative, which aims to save around $700 million, is a significant factor supporting the optimistic rating.

The initiative is expected to improve operational efficiency for Teva Pharmaceutical Industries Limited (NYSE:TEVA) by slashing external spending and headcount. It will also help improve the company’s margins, supporting its attainment of the 30% operating margin target by 2027.

The analyst also said that Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) branded portfolio is well-positioned for growth, supported by products such as Austedo, which have solid performance and potential for further expansion. In addition, the upcoming launch of Olanzapine LAI and Duvakitug, along with other pipeline developments, are expected to support considerable revenue growth.

Overall, TEVA ranks first among the best affordable stocks under $20 to buy. While we acknowledge the potential of affordable stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEVA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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