Earlier on August 29, Bob Keiser, Aspire Strategist Portfolios co-chief investment officer and senior market strategist, joined CNBC’s ‘Closing Bell Overtime’ to suggest that earnings growth continues to be in large-cap and growth stocks. Keiser stated that his firm has been bullish for two years, primarily expressing this through large-cap core exposure and growth stocks. The justification for this strategy is that this is where the earnings growth has been and continues to be. Discussing the overrepresentation of certain large technology stocks in the S&P 500, Keiser confirmed that investors have had to get used to it and pointed out that the top 10 stocks in the S&P account for about 40% of the market cap.
He provided a fundamental reason for this concentration: the technology and growth slice of the S&P 500 is the only sector this year that is expected to post four quarters of double-digit earnings growth on top of four quarters of double-digit earnings growth last year. Consensus expectations also project another year of four consecutive quarters of double-digit growth for the following year. Thus, investors have a fundamental reason for embracing these stocks and are certainly rewarded for it. Keiser then discussed a potential broadening of the market beyond tech, a concept he supports by looking ahead to 2026.
That being said, we’re here with a list of the 10 best large cap stocks to buy now under $20.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top large cap stocks that were trading between $10 billion to $200 billion and had a share price under $20. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on October 23.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Large Cap Stocks to Buy Now Under $20
10. Rivian Automotive Inc. (NASDAQ:RIVN)
Market Capitalization as of October 23: $15.68 billion
Share Price as of October 23: $12.92
Number of Hedge Fund Holders: 38
Rivian Automotive Inc. (NASDAQ:RIVN) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 20, JPMorgan analyst Ryan Brinkman raised the price target on Rivian to $10 from $9, while maintaining an Underweight rating on the shares. This sentiment was announced as a part of a Q3 2025 preview by the firm for the autos group.
JPMorgan raised its estimates for the auto suppliers, as this sector segment is the firm’s preferred area. The decision came due to stronger global light vehicle production and favorable trends in currencies and commodities. At the same time, JPMorgan lowered estimates for rental car companies due to aggressive pricing. A similar sentiment was expressed for tiremakers due to a rise in low-cost imports.
Rivian Automotive Inc. (NASDAQ:RIVN), together with its subsidiaries, designs, develops, manufactures, and sells EVs and accessories.
9. Cenovus Energy Inc. (NYSE:CVE)
Market Capitalization as of October 23: $30.20 billion
Share Price as of October 23: $16.78
Number of Hedge Fund Holders: 41
Cenovus Energy Inc. (NYSE:CVE) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 23, Travis Wood from National Bank kept a Buy rating on Cenovus Energy, with a price target of C$28.00. However, earlier on October 9, Raymond James analyst Michael Barth upgraded Cenovus Energy to Strong Buy from Outperform with a price target of C$32, which was an increase from C$30.
Raymond James updated the company’s model to include the MEG acquisition. Therefore, the firm views Cenovus as offering the best risk-adjusted return in the space. In other news, on October 8, Cenovus Energy announced that the company entered into an Amended Agreement to acquire MEG Energy Corp. The agreement amends the original arrangement agreement dated August 21 earlier this year and increases the aggregate purchase price.
Cenovus Energy Inc. (NYSE:CVE), together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada, the US, and China.
8. KeyCorp (NYSE:KEY)
Market Capitalization as of October 23: $19.21 billion
Share Price as of October 23: $17.52
Number of Hedge Fund Holders: 44
KeyCorp (NYSE:KEY) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 16, KeyBanc Capital Markets/KBCM and Lightshift Energy, which develops, owns, and operates battery energy storage projects across the US, announced the successful close of a $75 million credit facility. KBCM is the corporate and investment banking arm of KeyCorp.
The project finance facility is designed to support Lightshift’s rapidly expanding pipeline of energy storage projects, primarily across the East Coast, as the US market faces surging demand for energy storage and a critical need for firm, fast capacity solutions amid load growth and electricity supply constraints.
The flexible facility is structured to include a term loan, a construction-to-term loan, and a tax equity bridge loan, enhancing Lightshift’s ability to swiftly bring new projects online and at scale. The initial financing package specifically backs six of Lightshift’s already operational projects and enables the advancement of 10 projects that are currently in or nearing construction. Furthermore, it establishes a framework for supporting another large wave of projects in the company’s pipeline as it enters a phase of significant growth.
KeyCorp (NYSE:KEY) operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the US. It has two segments: Consumer Bank and Commercial Bank.
7. Albertsons Companies Inc. (NYSE:ACI)
Market Capitalization as of October 23: $10.76 billion
Share Price as of October 23: $19.58
Number of Hedge Fund Holders: 49
Albertsons Companies Inc. (NYSE:ACI) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 15, Bank of America analyst Robert Ohmes lowered the firm’s price target on Albertsons to $22 from $24 and kept a Neutral rating on the shares. This announcement was made as BofA raised its FY2026 adjusted EPS view by $0.03 to $2.13, which is in line with updated guidance after Q2 2025 earnings came in ahead of forecasts.
However, the firm still lowered its price target based on a lower multiple applied to its $0.05 higher FY2027 adjusted EPS forecast due to the lower peer and market multiples. On the same day, Wells Fargo analyst Edward Kelly maintained a Buy rating on Albertsons with a price target of $23.00. RBC Capital analyst Steven Shemesh also reiterated a Buy rating and set a price target of $21.00.
Albertsons Companies Inc. (NYSE:ACI), through its subsidiaries, operates in the food and drug retail industry in the US.
6. The AES Corporation (NYSE:AES)
Market Capitalization as of October 23: $10.26 billion
Share Price as of October 23: $14.41
Number of Hedge Fund Holders: 49
The AES Corporation (NYSE:AES) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 22, Morgan Stanley analyst David Arcaro raised the price target on AES Corp. to $24 from $23, while keeping an Overweight rating on the shares. This decision was announced as the firm updated its price targets for Regulated & Diversified Utilities/IPPs in North America under its coverage.
Morgan Stanley noted that last month, in September, utilities outperformed the S&P, and so heading into Q3 2025, the firm expects the focus for utility companies to be the evolution of their data center pipeline. So the firm will also be closely watching for commentary regarding interconnection times.
The AES Corporation (NYSE:AES), together with its subsidiaries, operates as a power generation and utility company in the US and internationally.
5. Avantor Inc. (NYSE:AVTR)
Market Capitalization as of October 23: $10.36 billion
Share Price as of October 23: $15.19
Number of Hedge Fund Holders: 49
Avantor Inc. (NYSE:AVTR) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 15, Avantor announced a partnership with BlueWhale Bio, which is a commercial-stage company that transforms immune cell therapy manufacturing. The collaboration addresses the unmet needs in CAR-T production by streamlining manufacturing, reducing variability, and shortening the time it takes to get therapies to patients.
The core of the partnership combines Avantor’s expertise in bioprocessing and custom ancillary-reagent manufacturing capabilities with BlueWhale Bio’s proprietary Synecta cell-derived nanoparticle/CDNP platform, which is designed to mimic natural T-cell stimulation. The acceleration is crucial to help CAR-T developers reduce the cell expansion time during manufacturing.
The partnership combines BlueWhale Bio’s novel Synecta platform with Avantor’s industrial-strength execution to accelerate the journey from discovery to delivery. Data from BlueWhale Bio’s preclinical and clinical programs indicate that the technology can lead to earlier cell division, higher cell yields, and fewer process interventions, which shows potential for reducing the overall CAR-T process time and minimizing cell stress during manufacturing.
Avantor Inc. (NYSE:AVTR) provides mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa.
5. Permian Resources Corporation (NYSE:PR)
Market Capitalization as of October 23: $10.36 billion
Share Price as of October 23: $12.49
Number of Hedge Fund Holders: 49
Permian Resources Corporation (NYSE:PR) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 21, Piper Sandler raised the price target on Permian Resources to $21 from $20 and kept an Overweight rating on the shares. This sentiment came as Piper Sandler is adjusting estimates for its E&P coverage ahead of the Q3 2025 earnings announcements.
Heading into Q3, conversations regarding E&P companies have focused on several key themes, which include the improving intermediate-term oil sentiment and the secular growth story for natural gas demand. Other points of interest include the FY26 outlook on capital efficiency, expectations for continued M&A activity, an increasing focus on both exploration and international exposure, and the overall rate of change across the US onshore landscape.
On the same day, BofA Securities analyst Noah Hungness maintained a Buy rating on Permian Resources yesterday with a $15.00 price target.
Permian Resources Corporation (NYSE:PR) is an independent oil & natural gas company that develops crude oil and associated liquids-rich natural gas reserves in the US.
3. Viatris Inc. (NASDAQ:VTRS)
Market Capitalization as of October 23: $12.05 billion
Share Price as of October 23: $10.33
Number of Hedge Fund Holders: 55
Viatris Inc. (NASDAQ:VTRS) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 15, Truist’s Les Sulewski initiated coverage of Viatris with a Buy rating and $15 price target. Truist acknowledges that concerns regarding legacy Viatris are still prevalent across the franchise. However, the firm maintains that there is an affirmative change in the direction of the company under its new leadership team.
This positive outlook is supported by a market-leading branded portfolio, a progressive generics foothold, and a robust pipeline with blockbuster potential. The analyst told investors that potential upside for the company could be realized through an earlier-than-anticipated return to full operations at the Indore manufacturing facility and through pipeline overdelivery.
Viatris Inc. (NASDAQ:VTRS), together with its subsidiaries, operates as a healthcare company internationally. It has four segments: Developed Markets, Greater China, JANZ, and Emerging Markets.
2. QXO Inc. (NYSE:QXO)
Market Capitalization as of October 23: $12.45 billion
Share Price as of October 23: $18.49
Number of Hedge Fund Holders: 65
QXO Inc. (NYSE:QXO) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 21, Vertical Research analyst Adam Baumgarten initiated coverage of QXO with a Buy rating and $30 price target.
Earlier on October 9, Truist analyst Keith Hughes lowered the firm’s price target on the company to $28 from $30 and maintained a Buy rating on the shares.
This sentiment was announced as Truist updated its models to reflect roofing volume weakness in recent months and stated that the lack of strong storm activity and weaker new construction will drive the downside. Truist also believes that the winter months will see inventory reductions in the channel, which will hurt production. At the same time, the firm expects weak pricing to also occur as the industry readjusts to proper levels to start the 2026 season.
KeyBanc also initiated coverage of the company on October 1 with an Overweight rating and $28 price target. KeyBanc views QXO as a compelling long-term story due to its leading growth and margin expansion potential. KeyBanc likes the company’s capital allocation strategy under a proven management team.
QXO Inc. (NYSE:QXO) is an industrials sector company that distributes roofing, waterproofing, and other building products in the US.
1. PG&E Corporation (NYSE:PCG)
Market Capitalization as of October 23: $36.65 billion
Share Price as of October 23: $16.67
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) is one of the 10 Best Large Cap Stocks to Buy Under $20. On October 22, Morgan Stanley raised the price target on PG&E to $21 from $19.50, while keeping an Equal Weight rating on the shares. The decision came out as the firm updated its price targets for Regulated & Diversified Utilities/IPPs in North America under its coverage.
It was noted in September that the utilities outperformed the S&P, and thus, for Q3 2025, Morgan Stanley expects a focus for utilities to be on the evolution of data center pipelines. For this reason, the firm is also watching for commentary around interconnection times.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California, the US.
While we acknowledge the potential of PCG 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 PCG and that has 100x upside potential, check out our report about this cheapest AI stock.
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