10 Best Stocks Under $20 to Buy According to Hedge Funds

8. Permian Resources Corporation (NYSE:PR)

Permian Resources Corporation (NYSE:PR) is one of the best stocks under $20 to buy according to hedge funds. On March 5, Piper Sandler increased its price target on Permian Resources Corporation (NYSE:PR) from $20 to $24 and maintained its Overweight rating on the stock.

Piper Sandler pointed out that the rotation trade got a shot in the arm as tensions and war with Iran put about 20% of the global supply of oil, petroleum products, and gas at risk. According to the research firm, the war has drawn attention away from Q4 results and outlooks for fiscal year 2026. However, Piper Sandler does not expect major changes from US operators because of the situation.

Earlier, on March 4, UBS also raised its price target on Permian Resources Corporation (NYSE:PR) from $19 to $23 and maintained its Buy rating on the stock. The firm believes that the energy sector currently offers an attractive risk-reward balance. The higher target reflects a $10 per barrel increase in its 2026 oil price forecasts, now expecting $68 for WTI and $72 for Brent.

UBS also pointed to a slight expansion in valuation multiples due to geopolitical risks in the Middle East and potential disruptions to gas supplies from Qatar. This could push oil and natural gas prices higher and create strong free cash flow potential for companies that produce both oil and gas.

Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations in the Permian Basin, with a concentration in the core of the Delaware Basin.