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

7. SoFi Technologies, Inc. (NASDAQ:SOFI)

SoFi Technologies, Inc. (NASDAQ:SOFI) is one of the best stocks under $20 to buy according to hedge funds. On March 3, Keefe, Bruyette & Woods analyst Tim Switzer noted that the stablecoin partnership between SoFi Technologies, Inc. (NASDAQ:SOFI) and Mastercard Incorporated (NYSE:MA) is a “significant development.” Keefe, Bruyette & Woods has an Underperform rating on the stock with a price target of $20.

The analyst noted that SoFiUSD will be joining other well-known stablecoins working with Mastercard Incorporated (NYSE:MA). This could strengthen SoFi Technologies, Inc.’s (NASDAQ:SOFI) position as an early mover among banks entering this space. Keefe, Bruyette & Woods noted that the utility for consumers is still unclear. However, the firm believes SoFi Technologies, Inc. (NASDAQ:SOFI) “has the chance to become a significant player in an industry that will likely consolidate around a few dominant, scaled coins/networks.”

SoFi Technologies, Inc. (NASDAQ:SOFI) reported that its technology platform, Galileo, will be among the first to allow clients and issuing banks to settle transactions using SoFiUSD. The company also said that SoFi Bank, N.A. is expected to settle its credit and debit transactions on the Mastercard network using SoFiUSD.

SoFi Technologies, Inc. (NASDAQ:SOFI) is an American digital financial services and technology company that offers a wide range of products and services including personal loans, private student loans, mortgages, credit cards, insurance, estate planning, and banking.