On September 16, Ali Dibadj, Janus Henderson Investors CEO, joined ‘Squawk Box’ on CNBC to discuss the latest market trends and suggest that small and mid-cap stocks have enormous potential to deliver going forward. Dibadj discussed the substance of fixed income and stated that the securitized sector of the market continues to trade cheaply. He expects the duration to be extended because the market is at the beginning of a cycle of easing.
Talking about equities, Dibadj stated that there are tons of opportunities despite the fact that a small group of companies have been pushed to the stratosphere. He described several themes driving client interest in equities, including navigating geopolitical changes. Clients are seeking very innovative companies that can break through that geopolitical tension. The firm looks strongly at healthcare and certain tech areas, specifically the picks and shovels as opposed to the high-flying stocks. Investors are also looking at demographics, lifestyle changes, and AI themes, which again make healthcare and tech attractive. Crucially, Dibadj concluded by stressing that the broad base of small and mid-cap stocks is way undervalued. While acknowledging the slowing economy necessitates selective choices, he believes small- and mid-cap stocks have enormous potential to actually deliver the next little while.
That being said, here’s a list of the 10 best stocks to buy under $20.
Methodology
We sifted through the Finviz stock screener to compile a list of the top stocks under $20 as of October 1. 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.
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 Stocks to Buy Under $20
10. Dyne Therapeutics Inc. (NASDAQ:DYN)
Share Price as of October 1: $12.50
Number of Hedge Fund Holders: 43
Dyne Therapeutics Inc. (NASDAQ:DYN) is one of the best stocks to buy under $20. On September 29, Dyne Therapeutics announced that Japan’s Ministry of Health, Labour and Welfare/MHLW granted Orphan Drug designation for its investigational therapeutic, DYNE-251. This designation is for individuals with Duchenne muscular dystrophy/DMD who have mutations in the DMD gene amenable to exon 51 skipping.
The company’s Chief Medical Officer, Doug Kerr, highlighted that data from the ongoing DELIVER trial showed unprecedented and sustained functional improvement through 18 months, driven by significant dystrophin expression.
DYNE-251 is being evaluated in the global, randomized, placebo-controlled, double-blind Phase 1/2 DELIVER clinical trial. The Orphan Drug designation in Japan is for drugs treating rare diseases affecting fewer than 50,000 patients and with a high medical need.
Dyne Therapeutics Inc. (NASDAQ:DYN) is a clinical-stage neuromuscular disease company that discovers and develops therapeutics for neuromuscular diseases in the US.
9. Ford Motor Company (NYSE:F)
Share Price as of October 1: $12.27
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is one of the best stocks to buy under $20. On September 30, Ford and General Motors Company (NYSE:GM) initiated programs with their car dealers to effectively extend the benefit of the expiring $7,500 US federal tax credit on leases of EVs. This move comes just before the subsidy’s expiration date, which was set for September 30 by US President Donald Trump’s massive tax bill signed in July.
Industry experts had predicted that EV sales and leasing would significantly drop following the tax credit’s end, especially after a recent surge of purchases by buyers attempting to beat the deadline. The programs, which were recently rolled out to retailers, involve the automakers’ financing arms taking initial action to secure the credit. Specifically, the financing arms, such as Ford Credit and GM Financial, are making down payments on EVs currently in dealer inventory.
According to company documents and dealers, these down payments legally qualify the lending arms for the $7,500 federal tax credit on those specific vehicles. Dealers can then offer leases on these pre-qualified cars to retail customers for several more months, with the full $7,500 subsidy factored into the reduced lease rate. Ford stated it is working to provide competitive lease payments on retail leases through Ford Credit until December 31.
Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans & cars, and Lincoln luxury vehicles worldwide. It operates through the Ford Blue, Ford Model e, Ford Pro, and Ford Credit segments.
General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments.
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