In this article, we will discuss the 10 Best Growth Stocks Under $20 to Buy.
On May 29, Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, joined BNN Bloomberg to discuss the markets. Wren attributed the market’s strong performance (which has exceeded expectations) largely to stellar earnings growth, noting that the economy might reach a 25 percent earnings growth rate for the year. He observed that the market currently seems indifferent to risks in the Strait of Hormuz and the Gulf, operating under the assumption that the situation in Iran will be of limited duration. While he acknowledged the conflict might last longer than initially expected, he noted that the market remains unconcerned about a long-term, ongoing crisis or a massive spike in oil prices.
Regarding the sustainability of the market rally, Wren stated that while stellar earnings are currently sufficient to maintain momentum, the upcoming Q2 reporting season leaves little margin for error. He noted that performance will depend not only on the large tech companies carrying the market but also on the downstream performance of the other 493 companies in the S&P 500. He also explained the rationale for favoring the utilities and industrials sectors to capitalize on the AI boom and infrastructure expansion. He noted that the growth of AI requires building massive data centers, which necessitates equipment like bulldozers and track hoes found in the industrial sector. Furthermore, he highlighted that power demand in the US is expected to increase by at least 25 percent (with some estimates reaching 50 percent) over the next 7 to 10 years, which will benefit utilities. He concluded that upgrading the power grid and supporting infrastructure will drive sustained performance for these sectors.
Our Methodology
We used screeners to identify stocks that have a record of delivering earnings growth and have grown their EPS by at least 20% over the past 3 years. We then selected stocks that are trading below $20 per share, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds
Note: All data was sourced on June 1.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Growth Stocks Under $20 to Buy
10. Aurora Innovation Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 35
Aurora Innovation Inc. (NASDAQ:AUR) is one of the best growth stocks under $20 to buy. On May 6, Aurora Innovation and McLane Company entered an agreement to launch driverless commercial hauls in Texas using the Aurora Driver, an SAE L4 self-driving system. This partnership aims to streamline the movement of supplies and perishable food for major restaurant chains, building upon a supervised pilot program that began in 2023.
The transition to driverless operations between Dallas and Houston follows a successful pilot in which Aurora Innovation Inc. (NASDAQ:AUR) logged over 280,000 autonomous miles and delivered 1,400 loads with 100% on-time performance. Building on this success, the companies plan to expand autonomous routes across the US Sun Belt by the end of the year to further enhance distribution efficiency.
The collaboration uses a hybrid operational model where the Aurora Driver handles the long-haul “middle mile” while human drivers continue to manage local, last-mile deliveries. By providing scalable, 24/7 capacity, this autonomous integration helps address labor constraints and maintains consistent transit schedules, ensuring a more resilient and efficient supply chain for McLane’s extensive distribution network.
Aurora Innovation Inc. (NASDAQ:AUR) designs and develops automotive hardware, software, and data services, led by its AI-powered Aurora Driver system.
9. Wisdomtree Inc. (NYSE:WT)
Number of Hedge Fund Holders: 35
Wisdomtree Inc. (NYSE:WT) is one of the best growth stocks under $20 to buy. On May 14, WisdomTree launched the Physical AI, Humanoids, and Drones Fund/WDRN, an ETF offering exposure to companies applying AI to physical tasks. With a 0.45% expense ratio, the fund focuses on humanoid robotics, autonomous drones, smart manufacturing, and logistics automation, representing a shift from digital AI to real-world autonomous systems.
The fund targets five key verticals across the physical AI value chain, providing diversified global exposure. Using a rules-based, quarterly rebalanced index, WDRN aims to capture the emerging investment cycle as AI moves into industrial infrastructure, healthcare, and defense.
Management at Wisdomtree Inc. (NYSE:WT) describes this as a turning point in AI deployment. Investors should note that the fund involves risks unique to robotics and drone technologies, including intense competition, high R&D costs, and evolving regulatory environments.
Wisdomtree Inc. (NYSE:WT), based in New York, is a global asset manager and provider of investment solutions. For instance, the company is a leading provider of exchange-traded fund/ETF and exchange-traded product/ETP. Its asset class spans equities, currency, and digital assets.
8. Monte Rosa Therapeutics Inc. (NASDAQ:GLUE)
Number of Hedge Fund Holders: 35
Monte Rosa Therapeutics Inc. (NASDAQ:GLUE) is one of the best growth stocks under $20 to buy. On May 7, Monte Rosa reported progress across its clinical-stage pipeline, with three programs advancing toward Phase 2 studies. MRT-8102, an NEK7-directed molecular glue degrader/MGD for inflammatory diseases, showed significant CRP reductions in early trials. The company plans to initiate multiple Phase 2 studies for MRT-8102 starting in H2 2026, targeting cardiovascular risk, gout, and hidradenitis suppurativa.
The company’s VAV1-directed MGD, MRT-6160, is progressing toward Phase 2 studies for immune-mediated diseases in collaboration with Novartis. Additionally, the GSPT1-directed MRT-2359 demonstrated encouraging efficacy in metastatic castration-resistant prostate cancer/mCRPC patients with androgen receptor/AR mutations, with a new Phase 2 study in combination with apalutamide planned for Q3 2026.
Monte Rosa Therapeutics Inc. (NASDAQ:GLUE) remains in a solid financial position, reporting $671 million in cash and equivalents, which is expected to support operations into 2029. Beyond its clinical assets, the company is advancing preclinical programs, including a cyclin E1-directed MGD for solid tumors, with an IND application expected in H2 2026.
Monte Rosa Therapeutics Inc. (NASDAQ:GLUE) is a Massachusetts-based clinical-stage biotechnology company developing novel small-molecule precision medicines. Incepted in 2019, the company maintains a strategic partnership and licensing agreement with F. Hoffmann-La Roche Ltd.
7. Genius Sports Ltd. (NYSE:GENI)
Number of Hedge Fund Holders: 37
Genius Sports Ltd. (NYSE:GENI) is one of the best growth stocks under $20 to buy. On May 4, Genius Sports entered a landmark tech and AI partnership with Liga MX, deploying its GeniusIQ platform across every stadium in the league. This collaboration integrates real-time tracking, video, and data insights to power a new suite of fan engagement, sponsorship, and performance solutions, aiming to elevate the league’s broadcast and operational standards.
The partnership introduces several advanced tools, including the “Moment Engine” for real-time sponsor advertising, augmented broadcast features like ProView3D, and world-leading semi-automated offside technology/SAOT to enhance officiating transparency. These integrations provide dynamic game insights and immersive experiences for fans, mirroring technologies already used in major leagues like the NFL, NBA, and English Premier League.
Additionally, Liga MX teams will gain access to “Performance Studio,” an advanced analytics platform that allows coaches to analyze tactics and player development in 3D. By modernizing its digital infrastructure, Liga MX aims to deepen fan engagement and create premium commercial inventory, further cementing its position as a dominant force in North American soccer.
Genius Sports Ltd. (NYSE:GENI) provides scalable, technology-led products and services to the sports, sports betting, and sports media industries.
6. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Number of Hedge Fund Holders: 39
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the best growth stocks under $20 to buy. On May 5, Adaptive Biotechnologies reported strong Q1 2026 results, with total revenue reaching $70.9 million, a 35% increase year-over-year. The company’s Minimal Residual Disease/MRD business served as the primary growth driver, accounting for 95% of total revenue and experiencing a 53% surge compared to Q1 2025. Test volume for its flagship clonoSEQ product rose 41% to 32,595 tests.
The company reduced its net loss to $20.0 million, down from $29.8 million in Q1 2025, and its non-GAAP Adjusted EBITDA loss narrowed to $2.5 million. Supported by this performance and $9 million in recognized regulatory milestone revenue, Adaptive Biotechnologies Corporation (NASDAQ:ADPT) raised its full-year 2026 MRD revenue guidance to a range of $260 to $270 million.
With $237.2 million in cash, cash equivalents, and marketable securities as of March 31, the company remains focused on its growth strategy. Leadership emphasized that accelerating adoption across clinical testing and drug development positions the firm to sustain its market leadership and continue generating long-term value.
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is involved in the development of an immune medicine platform, with its services and products including immunoSEQ, clonoSEQ, cellular therapy, and vaccines.
While we acknowledge the potential of ADPT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADPT and that has 100x upside potential, check out our report about the cheapest AI stock.
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