In this article, we will look at the 10 Best NYSE Stocks to Buy Under $20.
On August 9, Tom Lee, Fundstrat’s Managing Partner and Head of Research, appeared on CNBC’s ‘Closing Bell’ to talk about the markets. He stated that the market is consolidating and getting direction from what it does, as it did gain 28% from the April lows, and that needs to be digested.
The market is now in the dog days of August, where liquidity is low, and he feels that the market is holding its breath being in a period where the Fed is not going to make an interest rate decision till September.
READ ALSO: 10 Undervalued Defensive Stocks to Buy According to Analysts and 10 Most Undervalued Biotech Stocks to Buy Now.
Therefore, some of the key macro is on hold at the moment and the markets are “wait and see,” but the pullbacks have been shallow, according to him.
Lee added that there is a sober view about markets at the moment, with investors appearing cautious about valuations. Many have pointed to what they view as “mixed results for earnings.”
With these trends in view, let’s look at the best NYSE stocks to buy under $20.
A close-up view of a stock market floor, traders bustling around the trading board.
Our Methodology
We used stock screeners to make a list of NYSE stocks trading below $20 per share and selected the top 10 with the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on August 11.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best NYSE Stocks to Buy Under $20
10. Ambev S.A. (NYSE:ABEV)
Stock Price: $2.24
Number of Hedge Fund Holders: 21
Ambev S.A. (NYSE:ABEV) is one of the best NYSE stocks to buy under $20. In a report released on August 1, Isabella Simonato from Bank of America Securities maintained a Hold rating on Ambev S.A. (NYSE:ABEV) without assigning a price target.
The rating update followed Ambev S.A.’s (NYSE:ABEV) fiscal Q2 2025 results on July 31, with net revenue (organic) growth of 3.4% and top-line performance driven by net revenue per hectoliter (NR/hl) growth of 8.4%.
Normalized EBITDA (organic) grew by 7.6% with all of the company’s reporting segments delivering EBITDA growth.
Management also reported that normalized profit for the quarter rose 15.2% to R$2.8327 billion compared to R$2.4591 billion in fiscal Q2 2024. This growth was attributed to lower income tax expenses and EBITDA growth, particularly offset by higher net financial results.
Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products.
The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.
9. Haleon plc (NYSE:HLN)
Stock Price: $9.54
Number of Hedge Fund Holders: 22
Haleon plc (NYSE:HLN) is one of the best NYSE stocks to buy under $20. In a report released on August 4, Morgan Stanley maintained a Buy rating on Haleon plc (NYSE:HLN) with a price target of $10.95.
Haleon plc (NYSE:HLN) reported unaudited results for H1 2025 on June 30, reporting notable growth in EMEA & LatAm and Asia-Pacific, while showing continued outperformance in Oral Health.
Management reported organic revenue growth across EMEA & LatAm (+5.2%) and Asia-Pacific (+5.0%), partially offsetting a 0.4% decline in North America. The trends reflected a weak US consumer and retail environment.
The company also reported that 58% of businesses gained or maintained market share, suggesting the resilience of its brand portfolio. Free cash flow for the first half of the year reached £734 million, up £184 million year-on-year, primarily due to progress on working capital initiatives.
Haleon plc (NYSE:HLN) provides personal healthcare products, with a focus on consumer healthcare. The company’s operations are divided into the following geographical segments: North America, EMEA and LatAm, and Asia Pacific.
8. Barclays PLC (NYSE:BCS)
Stock Price: $19.94
Number of Hedge Fund Holders: 28
Barclays PLC (NYSE:BCS) is one of the best NYSE stocks to buy under $20. On August 5, RBC Capital raised the firm’s price target on Barclays PLC (NYSE:BCS) to 435 GBp from 355 GBp, keeping an Outperform rating on the shares.
On July 23, Barclays PLC (NYSE:BCS) announced that it signed a new multi-year strategic agreement with S&P Global.
Management reported that the mutually beneficial agreement encompasses “access to a comprehensive suite of S&P Global products, data and solutions, powered by S&P Capital IQ platform, to support Barclays’ businesses across its enterprise and help enhance the bank’s offerings to customers.”
The agreement also entails that Barclays PLC (NYSE:BCS) will contribute “certain data to S&P Global’s cross-asset pricing and valuation services, enhancing accuracy and coverage in bonds, loans, credit and derivative pricing across the liquidity spectrum”.
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.
7. Infosys (NYSE:INFY)
Stock Price: $15.99
Number of Hedge Fund Holders: 30
Infosys (NYSE:INFY) is one of the best NYSE stocks to buy under $20. In a report released on July 24, Sumeet Jain from CLSA maintained a Buy rating on Infosys (NYSE:INFY), setting a price target of INR1,861.00.
In other news, Infosys (NYSE:INFY) announced a strategic collaboration with RWE, a German multinational energy company, on July 28 to drive automated digital workplace transformation and improve operational efficiency.
The collaboration would implement solutions automating processes and enabling self-service options, supporting RWE’s ongoing efforts to drive operational excellence by leveraging Infosys Workplace Suite, which is an “amalgamation of tools and accelerators that help enterprises drive adoption of Digital Workplace Services”.
Infosys (NYSE:INFY) is a digital services and consulting company that provides end-to-end business solutions. The company’s operations are divided into the following segments: Financial Services, Retail, Communication; Energy, Utilities, Resources, and Services; Manufacturing, Hi-Tech, Life Sciences, and All Other.
6. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Stock Price: $12.12
Number of Hedge Fund Holders: 33
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the best NYSE stocks to buy under $20. On July 20, CICC initiated coverage of Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) with an Outperform rating and a $16 price target.
In other news, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) announced on August 4 that it concluded the transfer of its entire participation in the Cherne and Bagre fields to Perenco Petróleo e Gás do Brasil Ltda. The fields are located in shallow waters in the Campos Basin, and had their production halted in March 2020.
Management reported that the “respective production facilities have been mothballed since then,” and that the transfer of these fields entails compensation adjustments to be paid by Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR).
These are associated with the integrity of the asset, allowing the opportunity of resuming production by the new operation and providing an alternative to their decommissioning by Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR).
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is involved in exploration, production, and distribution activities involving oil and gas.
The company’s operations are divided into the following segments: Exploration and Production; Refining, Transportation, and Marketing; and Gas and Low Carbon Energies.
5. Energy Transfer LP (NYSE:ET)
Stock Price: $17.28
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the best NYSE stocks to buy under $20. In a report released on August 7, Raymond James reiterated a Buy rating on Energy Transfer LP (NYSE:ET), setting a price target of $24.00.
The rating update came after Energy Transfer LP (NYSE:ET) reported its fiscal Q2 2025 results on August 6, with net income attributable to partners reaching $1.16 billion compared to $1.31 billion in 2024. Adjusted EBITDA for the quarter was $3.87 billion, up from $3.76 billion in the same period last year.
Management also reported $1.04 billion in growth capital expenditures in fiscal Q2 2025, while maintenance capital expenditures were $253 million.
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.
4. Vale S.A. (NYSE:VALE)
Stock Price: $10.22
Number of Hedge Fund Holders: 37
Vale S.A. (NYSE:VALE) is one of the best NYSE stocks to buy under $20. On August 4, UBS raised the firm’s price target on Vale S.A. (NYSE:VALE) to $10 from $9, keeping a Neutral rating on the shares.
The analyst gave the rating after Vale S.A. (NYSE:VALE) reported its Q2 results on July 31, reporting improvement in operational and cost performance across all business segments and all guidances on track.
The company reported that copper and nickel sales rose 17% (12.9 kt) and 21% (7.0 kt) year-over-year, respectively, while iron ore shipments declined 3% (2.4 Mt) year-over-year. The trends reflect the ongoing portfolio optimization strategy by Vale S.A. (NYSE:VALE).
Management also reported that proforma EBITDA totaled $3.4 billion, 7% higher quarter-over-quarter and 14% lower year-over-year. Solid performance by copper and nickel segments and lower C1 cash cost in iron ore partly offset the effect of weaker commodity prices.
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.
3. Ford Motor Company (NYSE:F)
Stock Price: $11.32
Number of Hedge Fund Holders: 39
Ford Motor Company (NYSE:F) is one of the best NYSE stocks to buy under $20. RBC Capital raised the firm’s price target on Ford Motor Company (NYSE:F) to $11 from $10 on August 4, keeping a Sector Perform rating on the shares.
The firm told investors in a research note that Ford Motor Company (NYSE:F) Q2 beat and fiscal year 25 guidance was “impressive,” adding that the company “could be the story of ’26” if management can reduce EV losses and if Pro continues to exceed expectations.
RBC Capital also contended that Ford Motor Company (NYSE:F) could be best positioned if USMCA is negotiated at better tariff rates compared to the deals the US struck with the EU, Japan, and Korea.
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.
2. Rocket Companies, Inc. (NYSE:RKT)
Stock Price: $16.81
Number of Hedge Fund Holders: 44
Rocket Companies, Inc. (NYSE:RKT) is one of the best NYSE stocks to buy under $20. On August 5, Keefe Bruyette raised the firm’s price target on Rocket Companies, Inc. (NYSE:RKT) to $15 from $14, keeping a Market Perform rating on the shares.
The analyst told investors in a research note that the company’s fiscal Q2 earnings are being negatively affected by increased transaction-related expenses.
Rocket Companies, Inc. (NYSE:RKT) reported its fiscal Q2 earnings on July 31, with total revenue net of $1.36 billion and adjusted revenue of $1.34 billion.
Adjusted revenue for the quarter came in above the high end of the company’s guidance range, with GAAP net income for Q2 reaching $34 million and adjusted net income of $75 million.
Rocket Companies, Inc. (NYSE:RKT) provides a range of services related to homeownership and other personal financial transactions. The company’s operations are divided into the Direct to Consumer and Partner Network segments.
1. Nu Holdings Ltd. (NYSE:NU)
Stock Price: $12.30
Number of Hedge Fund Holders: 80
Nu Holdings Ltd. (NYSE:NU) is one of the best NYSE stocks to buy under $20. On June 30, JPMorgan raised the firm’s price target on Nu Holdings Ltd. (NYSE:NU) to $16 from $14.50, keeping an Overweight rating on the shares.
The firm told investors that it is “bullish on the name,” and is raising its estimates by 4% in 2025 and 2026. It reasoned that it sees tailwinds ahead that comprise resilient loan growth, along with net interest margin and credit card loan yield potentially rebounding.
Headquartered in George Town, Cayman Islands, Nu Holdings Ltd. (NYSE:NU) is a provider of digital banking services.
While we acknowledge the potential of NU 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 NU and that has 100x upside potential, check out our report about this cheapest AI stock.
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