In this article, we will look at the 10 Best Long Term Stocks to Buy Under $20.
On June 1, Chris Harvey, CIBC Capital Markets Managing Director & Head of Equity & Portfolio Strategy, appeared on CNBC’s ‘Fast Money’ to discuss the state of play in the market.
He wants to ride the momentum, but at the same time recognise the risks. If we go back to 1998, Harvey believes that similar trends can be observed, but the fundamentals today are significantly better than they were back then. His take on the current situation is that while we are seeing more chants that remind us of 1998, fundamentals and momentum still remain strong. He expects the current bullish environment to last about 18 more months.
READ ALSO: 10 Best Cheap Stocks to Buy for Beginners AND Top 10 Cheap Stocks With Strong Buy Ratings on Wall Street.
He thus thinks that this is “pretty robust” and that the market is not going to let you back in. There is risk building out there, according to Harvey, and there is just time for a little bit of volatility. He also stated that, according to his list, the top market opportunities lie in the AI beneficiaries, including technology, industrials, and utilities, with pockets in private credit.
With these broader market trends in view, let’s look at the best long-term stocks to buy under $20.
Our Methodology
We used the Finviz stock screener to identify the best long-term stocks under $20 with a 5-year sales growth of over 20%. We then selected the top 10 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on June 5.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best Long Term Stocks to Buy Under $20
10. Wise Group plc (NASDAQ:WSE)
Number of Hedge Fund Holders: N/A
Wise Group plc (NASDAQ:WSE) is one of the best long term stocks to buy under $20. Wise Group plc (NASDAQ:WSE) received a rating update from BNP Paribas on June 1. The firm initiated coverage of the stock with an Outperform rating, and set a price target of 1,240 GBp.
In a separate development, Wise Group plc (NASDAQ:WSE) announced on May 11 its listing on Nasdaq. The company reported that it would commence trading on Nasdaq at 9:30 am ET and would also maintain a secondary listing on the London Stock Exchange (LSE). Management added that the company’s shares will continue to trade on the LSE’s Main Market for listed securities.
Wise Group plc (NASDAQ:WSE) also announced on May 4 the introduction of a first-of-its-kind multi-currency Interest feature in Canada, reporting that its customers will now be able to opt in to earn market-leading returns on EUR, GBP, CAD, and USD from the convenience of a single multi-currency account. It added that customers who opted in can continue to spend, send, and convert funds while earning a return, with no minimum balance requirements or penalties.
Wise Group plc (NASDAQ:WSE) is a global payments solutions company that offers cross-border payment services to banks and customers.
9. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 11
Li Auto Inc. (NASDAQ:LI) is one of the best long term stocks to buy under $20. Li Auto Inc. (NASDAQ:LI) announced on June 1 that it delivered 33,350 vehicles in May 2026, and as of May 31, 2026, the company’s cumulative deliveries reached 1,702,792. It added that since March, its monthly deliveries of Li i6 have consistently surpassed 20,000 units.
Li Auto Inc. (NASDAQ:LI) launched and commenced deliveries of the all-new Li L9 in May, which marked the initiation of a fresh product update cycle for the Li L series. The Li L9 Livis received over 10,000 orders within two weeks of its launch. Management stated that the company has plans to host a dedicated technology event in June to offer insights into its capabilities across assisted driving, in-cabin interaction, foundation model, system agents, and in-house chips, which would be followed by the late-June launch of the all-new Li L8, a five-seat flagship SUV.
Li Auto Inc. (NASDAQ:LI) also reported that as of May 31, 2026, it has 498 retail stores in 160 cities, 543 servicing centers, and Li Auto-authorized servicing shops operating in 222 cities. It also has 4,088 supercharging stations in operation, equipped with 22,563 charging stalls in China.
Li Auto Inc. (NASDAQ:LI) is involved in the design, development, manufacture, and sale of premium smart electric vehicles. The company’s products include Li MEGA, Li L9, Li L8, and Li L7.
8. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 21
XPeng Inc. (NYSE:XPEV) is one of the best long term stocks to buy under $20. XPeng Inc. (NYSE:XPEV) announced its vehicle delivery results for May 2026 on June 1. The company delivered a total of 32,158 vehicles in May, reflecting a 4% increase from the prior month. Management stated that the company’s electric vehicles delivered between January and May 2026 are anticipated to reduce life-cycle greenhouse gas emissions by over 2 million tons compared to internal combustion engine vehicles. This translates to the carbon absorption of 33.16 million young trees over 10 years.
In a separate development, XPeng Inc. (NYSE:XPEV) received a rating update from BofA on May 28. The firm lifted the price target on the stock to $25 from $24, maintaining a Buy rating on the shares and stating that the company’s fiscal Q1 results showed rapidly growing overseas sales, which accounted for 20% of revenue in the quarter. It further told investors in a research note that management is targeting more than 10,000 monthly overseas unit sales by fiscal Q4 and over 100% annual growth.
XPeng Inc. (NYSE:XPEV) is involved in the design, manufacturing, development, and marketing of smart electric vehicles. The company’s offerings are environmentally friendly vehicles, namely an SUV (the G3) and a four-door sports sedan (the P7). It also offers a range of client services, including supercharging service, maintenance service, ride-hailing service, and vehicle leasing service.
7. SailPoint, Inc. (NASDAQ:SAIL)
Number of Hedge Fund Holders: 25
SailPoint, Inc. (NASDAQ:SAIL) is one of the best long term stocks to buy under $20. SailPoint, Inc. (NASDAQ:SAIL) received a rating update from Barclays on June 2. The firm lifted the price target on the stock to $22 from $16 and maintained an Overweight rating on the shares. The rating update came ahead of the company’s earnings report, set to be released on June 9. The firm stated that it models fiscal Q1 net new annual recurring revenue of $30M off of tough compares, but also believes that an upside scenario could be $37M based on healthy federal activity.
SailPoint, Inc. (NASDAQ:SAIL) also received a rating update from Roth Capital on May 20. The firm initiated coverage of the stock with a Buy rating, setting a price target of $19. It told investors in a research note that the company estimates its addressable market at $55 billion compared to a current run-rate of $1 billion in annual recurring revenue, and that positions it well for long-term growth. The firm also believes that SailPoint, Inc.’s (NASDAQ:SAIL) fiscal 2027 outlook and consensus annual recurring revenue expectations are conservative.
SailPoint, Inc. (NASDAQ:SAIL) provides an elaborate identity security platform for the enterprise, with its solutions allowing organizations to control, establish, and automate policies that allow them to attain regulatory compliance and define and maintain a robust security posture.
6. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 31
NIO Inc. (NYSE:NIO) is one of the best long term stocks to buy under $20. NIO Inc. (NYSE:NIO) announced its May 2026 delivery results on June 1, reporting that it delivered 37,705 vehicles in the month, representing a notable growth of 62.3% year-over-year. The deliveries comprised 20,013 vehicles from the NIO brand, 12,029 vehicles from the ONVO brand, and 5,663 vehicles from the FIREFLY brand, while cumulative deliveries reached 1,148,118 as of May 31, 2026.
NIO Inc. (NYSE:NIO) also announced the official launch of ONVO L80 on May 15, 2026, which is its smart flagship five-seat SUV, with deliveries commencing on May 16. Management stated that the L80 received strong user feedback since its launch, and as a category-defining product in the large five-seat SUV segment, it integrates flagship smart technologies, innovative space design, and a comprehensive charging and battery swapping network to address user needs in travel scenarios, space, and power solutions.
NIO Inc. (NYSE:NIO) designs, manufactures, and sells electric vehicles. It provides users with power express valet services, home charging, and other power solutions, such as battery swapping, public charging, and access to power mobile charging trucks. The company offers its products under the brands NIO, ONVO, and FIREFLY.
While we acknowledge the potential of NIO 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 NIO and that has 100x upside potential, check out our report about the cheapest AI stock.
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