In this article, we will look at the 10 Best Affordable Stocks Under $20 to Buy.
Could the Stock Market Fall to All-Time Lows?
On May 6, Paul Tudor Jones, Tudor Investment Corporation founder and CIO, and Robin Hood Foundation founder and board member, appeared on CNBC’s ‘Squawk Box’ to talk about Trump’s tariff policies, the latest market trends, and the state of the economy. He opined that the stock market would hit new lows even if Trump decides to dial down China tariffs by 50%.
He said the state of the economy is pretty clear: Trump is locked in on tariffs, and the Fed is locked in on not cutting rates, and that mix is not good for the stock market. According to Jones, the stock market is thus expected to hit new lows. Tariffs would have been great for the market, but not to the extent Trump is using them, and that is pushing the market to the tipping point.
READ ALSO: 10 Best Low Priced Biotech Stocks to Buy Now and 11 Most Promising Future Stocks According to Hedge Funds.
De-escalation in the China and US Trade War
Trade relations between China and the US seem to be thawing. On May 12, CNBC reported that the two countries decided to suspend tariffs for 90 days on each other’s goods, causing a significant trade breakthrough between two of the largest global economies. As per the deal, “reciprocal” tariffs on the two countries will be slashed from 125% to 10%. However, since the 20% levies on Chinese imports surrounding fentanyl are said to remain in place, the total tariffs on Chinese goods come up to 30%.
This trade breakthrough followed high-stakes talks between representatives of China and the US in Switzerland. US Treasury Secretary Scott Bessent said the following about the situation in a news conference:
“We had very productive talks, and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process. We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%.”
What Does the US-China Trade War Truce Mean for the Stock Market?
The two countries also announced optimistic plans to continue their discussions on trade and economic policies in the future. CNBC reported that Mark Williams, chief Asia economist at Capital Economics, called this truce “a substantial de-escalation.” In a research note, Williams said:
“However, the US still has much higher tariffs on China than on other countries and still appears to be trying to rally other countries to introduce restrictions of their own on trade with China. In these circumstances, there is no guarantee that the 90-day truce will give way to a lasting ceasefire.”
Furthermore, Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management, opined that the tariff reduction between the two countries was much larger than expected. He said that investors are still looking forward to further details on other trade terms, such as whether rare earth export restrictions would be relaxed from the Chinese side.
“This reflects both sides recognizing the economic reality that tariffs will hit global growth and negotiation is a better option going forward,” Hui stated in a research note. “The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process.”
With that, let’s look at the best affordable stocks under $20 to add to your portfolio.
A couple looking at stocks of companies in their portfolio in a financial advisor’s office.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best affordable stocks under $20 with forward P/E ratios under 15, and chose the top 10 with the highest number of hedge fund holders, as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of hedge fund sentiment.
Note: The data was recorded on May 14.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
10 Best Affordable Stocks Under $20 to Buy
10. Barclays PLC (NYSE:BCS)
Stock Price: $17.00
Forward P/E: 7.22
Number of Hedge Fund Holders: 25
Headquartered in London, Barclays PLC (NYSE:BCS) is a bank holding company that provides credit cards, retail banking, wealth management, and corporate and investment banking services. Its operations are divided into the following segments: Barclays United Kingdom (UK), Barclays United Kingdom (UK) Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, Barclays United States (US) Consumer Bank, and Head Office.
The company’s strong fiscal Q1 2025 results reinforced investor confidence, as it attained a return on tangible equity (RoTE) of 14%, reflecting a 12.3% improvement compared to last year. This growth highlights Barclays PLC’s (NYSE:BCS) ability to generate substantial returns on equity.
Following the earnings release, Bank of America Securities analyst Perlie Mong maintained a Buy rating on the stock on April 30, setting a price target of p370.00. The analyst said that the company’s underlying profit before tax surpassed expectations by 9%, primarily because of a significant income beat. This holds especially true for its Investment Bank division, which underwent a 16% year-on-year growth.
The analyst further reasoned that Barclays PLC’s (NYSE:BCS) operations reflect positive trends, as net interest income exceeded consensus and the guidance for 2025 was upgraded. Management also reported improvement in structural hedge reinvestment assumptions and deposit trends, supporting the buy rating.
9. Amcor plc (NYSE:AMCR)
Stock Price: $9.17
Forward P/E: 12.56
Number of Hedge Fund Holders: 29
Amcor plc (NYSE:AMCR) is a holding company that provides consumer packing services. Its operations are divided into the Flexibles and Rigid Packaging segments. The Flexibles segment manages the development and supply of flexible packaging, while the Rigid Plastics segment manufactures rigid plastic containers and other products for global supply. It ranks ninth on our list of the best affordable stocks under $20 to buy.
The company reported solid fiscal Q3 2025 results, with net sales reaching $3.333 billion and a GAAP net income of $196 million. Adjusted EPS rose by 5% to 18.0 cents, while adjusted EBIT touched $384 million, maintaining last year’s performance on a comparable constant currency basis.
Amcor plc (NYSE:AMCR) also closed the merger with Berry Global, which is expected to drive significant synergies. The company is targeting $650 million in cost, financial, and growth synergies over the next three years.
Supported by these positive company trends, Michael Roxland from Truist Financial reiterated a Buy rating on Amcor plc (NYSE:AMCR) on May 2, setting a price target of $12.00.
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