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.
8. SentinelOne Inc. (NYSE:S)
Share Price as of October 1: $17.43
Number of Hedge Fund Holders: 45
SentinelOne Inc. (NYSE:S) is one of the best stocks to buy under $20. On October 2, Elpha Secure and SentinelOne announced a partnership to enhance cyber resilience and protection for small and midsize businesses/SMBs. Elpha Secure is the first fully integrated cyber insurance & security platform, and is collaborating with SentinelOne to offer a comprehensive solution that combines Elpha’s insurance product with SentinelOne’s advanced security platform.
The joint effort is designed to address both the cybersecurity and insurance needs of SMB customers, making best-in-class cyber hygiene easy and accessible. The partnership delivers several key benefits, including granting SMBs access to a best-in-class cybersecurity defense product that integrates a market-leading end detection response solution with full-coverage cyber insurance.
Furthermore, the offering provides seamless installation support and guidance, with Elpha’s Security Operations Center assisting policyholders in deploying SentinelOne and managing their security posture using real-time threat monitoring and mitigation.
SentinelOne Inc. (NYSE:S) operates as a cybersecurity provider in the US and internationally. The company also has an alliance with Schwarz Digits KG for the development of Sovereign, which is an AI-powered cybersecurity platform.
7. Albertsons Companies Inc. (NYSE:ACI)
Share Price as of October 1: $17.35
Number of Hedge Fund Holders: 49
Albertsons Companies Inc. (NYSE:ACI) is one of the best stocks to buy under $20. On September 23, Albertsons Companies announced the launch of “for U Travel,” which is a new travel booking experience powered by Expedia. This feature is integrated within the free for U loyalty program and rewards customers with cashback on both air and non-air travel bookings.
Through the program, members of the free for U loyalty program can earn up to 5% cashback to use toward grocery purchases at any Albertsons Companies store, such as Albertsons, Safeway, Vons, Jewel-Osco, ACME, and Shaw’s. Members of the paid FreshPass loyalty program can earn an even more generous up to 10% cashback.
The cashback reward is an additional perk for FreshPass members, who already enjoy benefits like unlimited free delivery on orders over $30, non-expiring points, and extra savings on select private label brands. The partnership uses Expedia Group’s White Label Template solution.
Albertsons Companies Inc. (NYSE:ACI) operates in the food and drug retail industry in the US. The company’s food & drug retail stores offer grocery products, general merchandise, health & beauty care products, pharmacy, fuel, and other items & services.
6. BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX)
Share Price as of October 1: $7.37
Number of Hedge Fund Holders: 49
BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) is one of the best stocks to buy under $20. On October 1, BioCryst Pharmaceuticals announced the successful completion of the previously announced sale of its European ORLADEYO (berotralstat) business to Neopharmed Gentili. The transaction is valued at $250 million upfront, subject to customary purchase price adjustments, with the potential for BioCryst to receive up to $14 million in future milestones based on sales in Central and Eastern Europe.
The divestiture immediately improves BioCryst’s operating margin, as the European business was ~breakeven on a direct basis. BioCryst will now focus on driving ORLADEYO sales in the US, while Neopharmed Gentili will lead commercialization across Europe, retaining the European commercial organization built by BioCryst for operational continuity.
Despite the exclusion of European revenue after the close, BioCryst remains on track to meet the upper half of its 2025 revenue guidance range of $580 million to $600 million.
BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) is a biotechnology company that develops oral small-molecule and injectable protein therapeutics to treat rare diseases.
5. Peloton Interactive Inc. (NASDAQ:PTON)
Share Price as of October 1: $8.67
Number of Hedge Fund Holders: 53
Peloton Interactive Inc. (NASDAQ:PTON) is one of the best stocks to buy under $20. On October 1, Peloton announced the launch of the Peloton Pro Series, which is a new suite of commercial-ready equipment designed for vertical market fitness center environments such as hotels and resorts, multi-family residential buildings, corporate wellness centers, and country clubs.
This lineup marks the first offerings from Peloton’s newly formed Commercial Business Unit, which merges Peloton’s hardware, software, coaching, and community with the global reach and support of Precor. The refreshed product suite includes the Peloton Tread+ Pro, Peloton Bike+ Pro, and Peloton Row+ Pro.
These products feature thoughtful updates for enhanced durability, improved motors, a commercial limited warranty, and software tailored for commercial settings. A key innovation is the advanced swivel screen on each machine, designed to facilitate cross-training by allowing exercisers to seamlessly transition between cardio and other disciplines to help operators maximize space. The introduction of the Peloton Tread+ Pro marks Peloton’s first commercial treadmill, completing the full cardio suite for commercial customers.
Peloton Interactive Inc. (NASDAQ:PTON) provides fitness and wellness products and services in North America and internationally.
4. Syndax Pharmaceuticals Inc. (NASDAQ:SNDX)
Share Price as of October 1: $15.68
Number of Hedge Fund Holders: 53
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is one of the best stocks to buy under $20. On September 19, Syndax Pharmaceuticals announced a major milestone: the National Comprehensive Cancer Network/NCCN updated its Clinical Practice Guidelines in Oncology/NCCN Guidelines for Acute Myeloid Leukemia/AML to include Revuforj (revumenib).
Revumenib received a Category 2A recommendation for the treatment of relapsed or refractory (R/R) AML with an NPM1 mutation/mNPM1. This update was based on positive pivotal results from the AUGMENT-101 trial of revumenib, which were published in the journal Blood in 2025. The NCCN Guidelines for AML and acute lymphoblastic leukemia/ALL already included revumenib as a Category 2A recommendation for R/R acute leukemia with a KMT2A rearrangement.
Syndax has submitted a supplemental New Drug Application/sNDA seeking approval for revumenib to treat R/R mNPM1 AML. The US FDA granted the sNDA Priority Review and is reviewing it under the Real-Time Oncology Review/RTOR program, setting a Prescription Drug User Fee Act/PDUFA target action date of October 25 this year.
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is a commercial-stage biopharmaceutical company that develops therapies for the treatment of cancer.
3. Roivant Sciences Ltd. (NASDAQ:ROIV)
Share Price as of October 1: $15.75
Number of Hedge Fund Holders: 54
Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the best stocks to buy under $20. On September 17, Roivant and Priovant Therapeutics announced positive results from the Phase 3 VALOR study, a 52-week placebo-controlled trial evaluating the once-daily oral drug brepocitinib in patients with dermatomyositis/DM. This trial enrolled 241 subjects globally and is noted as the longest and largest interventional DM study ever conducted.
The study met its primary endpoint, with the brepocitinib 30 mg dose achieving a week 52 mean Total Improvement Score/TIS of 46.5, compared to 31.2 for placebo. A statistically significant difference in mean TIS between the 30 mg dose and placebo was observed as early as week 4 and was sustained throughout the one-year study.
This result marks the first-ever positive outcome for a 52-week placebo-controlled trial and the first positive registrational trial for a targeted therapy in DM. Brepocitinib 30 mg also demonstrated clinically meaningful and statistically significant improvement over placebo on all nine key secondary endpoints, which included measurements of skin disease/CDASI, muscle disease/MMT-8, steroid-sparing effect, and rapidity of onset.
Roivant Sciences Ltd. (NASDAQ:ROIV) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes medicines and technologies.
2. PG&E Corporation (NYSE:PCG)
Share Price as of October 1: $15.66
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) is one of the best stocks to buy under $20. On September 29, PG&E Corporation announced a plan to spend $73 billion by 2030 on transmission upgrades. This major investment is intended to address the surge in electricity demand, primarily driven by data centers and the increased adoption of artificial intelligence.
The California-based company is working to serve 10GW of new electricity demand from data center projects over the next ten years. The surge in power consumption is expected to contribute to record high power consumption in 2025 and 2026, according to the US Energy Information Administration/EIA.
In addition to serving the new data center load, PG&E is making investments to improve the reliability of its power grid, having previously been criticized for sparking numerous wildfires. A plan filed in March for the 2026-2028 period outlines the company’s goals to build nearly 700 miles of underground power lines and complete 500 miles of additional wildfire safety system upgrades between 2025 and 2026.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, engages in the sale & delivery of electricity & natural gas to customers in northern and central California in the US.
1. Nu Holdings Ltd. (NYSE:NU)
Share Price as of October 1: $15.19
Number of Hedge Fund Holders: 97
Nu Holdings Ltd. (NYSE:NU) is one of the best stocks to buy under $20. On September 30, Nubank announced that it had applied for a national bank charter with the Office of the Comptroller of the Currency/OCC of the US. This action is a preparatory stage supporting Nubank’s long-term vision of expanding its customer-centric, tech-driven digital banking platform beyond Latin America, with the ultimate goal of evolving its regional platform into a global model.
This pursuit positions the company to unlock new possibilities within the US financial landscape. Founder and CEO of Nu Holdings, David Vélez, noted that while the core focus remains on delivering growth in its existing markets, the charter application will help Nubank better serve its existing customers based in the US and, in the future, connect with others who could benefit from its products and services.
A national bank charter from the OCC would support Nubank’s ability to innovate responsibly and scale efficiently in the US market, eventually allowing it to offer deposit accounts, credit cards, lending, and digital asset custody. This strategy reflects the compliance-first mindset established in its current operations in Brazil, Mexico, and Colombia.
Nu Holdings Ltd. (NYSE:NU) provides a digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the US.
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 the cheapest AI stock.
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Disclosure: None.
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