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.
8. Stellantis N.V. (NYSE:STLA)
Stock Price: $10.96
Forward P/E: 5.28
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) designs, manufactures, distributes, and sells vehicles. The company offers products under various brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
On April 30, 2025, the company reported a 14% drop in its fiscal Q1 2025 revenue, primarily due to unfavorable pricing and reduced shipment volumes. Despite the challenges it is facing, Stellantis N.V. (NYSE:STLA) improved its market share in the US and EU30 markets and launched new products. It is actively engaging with policymakers to manage the impact of tariffs on its operations.
Stellantis N.V. (NYSE:STLA) is also rolling out the STLA AutoDrive system and bolstering its strategic partnership with Mistral AI to advance its technological capabilities.
Even after the revenue drop, Jose Asumendi from J.P. Morgan maintained a Buy rating on Stellantis N.V. (NYSE:STLA) on May 1 because of these optimistic trends and set a price target of €13.00.
7. Vale S.A. (NYSE:VALE)
Stock Price: $9.88
Forward P/E: 5.44
Number of Hedge Fund Holders: 36
Vale S.A. (NYSE:VALE) produces and exports pellets, iron ore, manganese, and iron alloys. Its operations are divided into the Energy Transition Materials, Iron Solutions, and Coal and Others segments.
The company released its fiscal Q1 2025 results on April 25, presenting a balanced sentiment. It reported successful expense reductions and a 4% year-over-year growth in iron ore sales, reaching 66 million tons. This growth occurred on top of a 4% decrease in production, which reflects Vale S.A.’s (NYSE:VALE) sales optimization potential even under production constraints.
The company is also making strides in its growth projects, especially in iron ore. Its Vargem Grande and Capanema projects are on track to deliver a combined 40 million tons by 2025.
Following the earnings release, Barclays analyst Amos Fletcher maintained a Buy rating on Vale S.A. (NYSE:VALE) on April 28 and set a price target of $12.75. The company ranks seventh on our list of the best affordable stocks under $20 to invest in.
6. Energy Transfer LP (NYSE:ET)
Stock Price: $18.00
Forward P/E: 12.86
Number of Hedge Fund Holders: 37
Energy Transfer LP (NYSE:ET) offers natural gas pipeline transmission and transportation services. The company operates through the following segments: Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other. It takes the sixth spot on our list of the top affordable stocks under $20 to buy now.
In a report released on May 7, Michael Blum from Wells Fargo maintained a Buy rating on Energy Transfer LP (NYSE:ET) due to its favorable financial outlook and trends its following fiscal Q1 2025 earnings, and set a price target of $21.00.
On May 6, Energy Transfer LP (NYSE:ET) reported strong financial results for fiscal Q1 2025, with adjusted EBITDA reaching $4.1 billion, an increase from $3.9 billion in fiscal Q1 2024. The company also has a firm financial footing, as the distributable cash flow (DCF) attributable to partners has reached $2.3 billion.
5. Kinross Gold Corporation (NYSE:KGC)
Stock Price: $13.76
Forward P/E: 11.91
Number of Hedge Fund Holders: 39
Based in Canada, Kinross Gold Corporation (NYSE:KGC) is a global senior gold mining company that operates in the US, Brazil, Mauritania, Chile, and Canada. Its projects include Fort Knox, Round Mountain, Bald Mountain, Manh Choh, Paracatu, La Coipa, Lobo-Marte, Tasiast, and Great Bear projects.
In a report released on May 7, Stifel Nicolaus analyst Ralph M. Profiti maintained a Buy rating on Kinross Gold Corporation (NYSE:KGC) and set a price target of C$24.50.
The rating came after the company’s strong financial results for fiscal Q1 2025 on May 6. The company reported notable growth in net earnings attributable to common shareholders, reaching $368 million compared to $107 million last year.
Kinross Gold Corporation (NYSE:KGC) also experienced a 38% rise in metal sales, attributed to higher gold sales prices and volumes. Although it underwent a minute fall in attributable gold equivalent ounces produced, operating earnings rose by 195%.
These trends reflect improved market conditions and solid operational performance, supporting bullish analyst sentiment and highlighting Kinross Gold Corporation’s (NYSE:KGC) ability to capitalize on favorable market dynamics.
4. Cenovus Energy Inc. (NYSE:CVE)
Stock Price: $13.93
Forward P/E: 11.47
Number of Hedge Fund Holders: 39
Based in Canada, Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company that provides gas and oil. Its operations are divided into the Upstream, Downstream, and Corporate and Eliminations segments.
The Upstream segment includes oil sands, conventional, and offshore operations, while the Downstream segment manages the US and Canadian refining.
Cenovus Energy Inc. (NYSE:CVE) reported its fiscal Q1 2025 results on May 8, generating more than $1.3 billion in cash from operating activities, $983 million in free funds flow, and $2.2 billion in adjusted funds flow. Its upstream production rose to 818,900 barrels of oil equivalent per day, while downstream crude throughput was 665,400 barrels per day. The overall utilization rate reached 92%.
On the same day, analyst Lloyd Byrne from Jefferies maintained a Buy rating on Cenovus Energy Inc. (NYSE:CVE), keeping the price target at C$23.00. The analyst opined that its financial results for fiscal Q1 2025 exceeded expectations, with robust upstream operations driving cash flow per share beyond both Jefferies’ estimates and consensus forecasts.
The analyst also said that Cenovus Energy Inc. (NYSE:CVE) reported lower-than-expected capital expenditures, leading to free cash flow notably exceeding projections. The company takes the fourth spot on our list of the top affordable stocks under $20 to buy.
3. Ford Motor Company (NYSE:F)
Stock Price: $10.60
Forward P/E: 9.92
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) manufactures, distributes, and sells automobiles. It operates through the following segments: Ford Blue, Ford Model E, Ford Pro, Ford Next, Ford Credit, and Corporate Other. It is the third-best affordable stock under $20 to add to your portfolio.
On May 8, Barclays raised the firm’s price target on Ford Motor Company (NYSE:F) to $9 from $8, keeping an Equal Weight rating on the shares. The rating update came after Ford Motor Company (NYSE:F) reported its fiscal Q1 2025 earnings.
In a research note, the analyst told investors the company “has a great opportunity ahead; now the question is on execution.”
Barclays believes that Ford Motor Company’s (NYSE:F) fiscal Q1 2025 earnings checked a number of boxes, exhibiting continued positive trends on cost and reporting a solid beat. The firm contended that while guidance was pulled, the fiscal Q1 beat and favorable cost commentary held the potential to support a guidance raise, excluding the impacts of tariffs.
Ford Motor Company’s (NYSE:F) fiscal Q1 2025 earnings showed revenue of $40.7 billion, net income of $471 million, and adjusted EBIT reaching $1 billion. The company also has a strong balance sheet, with $27 billion in cash and $45 billion in liquidity, which lends it the flexibility to continue profitable growth investments.
2. Hewlett Packard Enterprise Company (NYSE:HPE)
Stock Price: $17.92
Forward P/E: 10.01
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) is a global global edge-to-cloud company that delivers open and intelligent technology solutions as a service. The company offers compute, cloud services, intelligent edge, high performance computing & artificial intelligence, software, and storage. Its operations are divided into the Server, Hybrid Cloud, Intelligent Edge, Financial Services, and Corporate Investments and Other segments.
Hewlett Packard Enterprise Company (NYSE:HPE) is the second-best affordable stock under $20 to buy on our list. On April 16, Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on the stock, setting a price target of $20.00. The analyst highlighted the company’s value creation potential, claiming that the valuation on a sum-of-the-parts basis is especially attractive. Aruba alone represents a considerable portion of the enterprise value.
Mohan also opined that the involvement of activist investor Elliott Management, which holds a significant stake in the company, points to a belief in Hewlett Packard Enterprise Company’s (NYSE:HPE) undervaluation compared to its peers like Dell.
The analyst also highlighted that there are opportunities for operational improvements in the company, especially after last quarter’s performance issues.
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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