In this article, we will be looking at the 10 Best Stocks under $20 to Buy According to Hedge Funds.
On March 12, CNN reported that stocks are falling while oil prices are rising as tensions with Iran fuel concerns about higher energy costs and disruptions to the global economy. Oil prices increased after Iran’s new supreme leader, Mojtaba Khamenei, delivered his first public message. He warned that the important Strait of Hormuz would stay closed as a “tool of pressure” and also threatened that US bases in the region “will be attacked” unless they are shut down.
Felix Vezina-Poirier, chief strategist at BCA Research, said in a note that “the implicit closure of the Strait of Hormuz remains the hinge factor for global markets.”
US Energy Secretary Chris Wright said on “CNN News Central” that “the Strait of Hormuz needs to be and will be reopened” as the US continues military operations in Iran.
The International Energy Agency said in its monthly oil report that the conflict in the Middle East is causing “the largest supply disruption in the history of the global oil market.”
Adam Turnquist, chief technical strategist at LPL Financial, said in a note that oil continues to be “the primary market driver, with developments around the reopening of the Strait of Hormuz acting as either an accelerator or a brake on risk appetite.”
Rising geopolitical tensions and energy price volatility are increasing uncertainty for equity markets, prompting investors to look for resilient and undervalued stocks.
With this background in mind, let’s take a look at the 10 best stocks under $20 to buy according to hedge funds.
Our Methodology
To compile our list of the 10 best stocks under $20 to buy according to hedge funds, we used the Finviz stock screener to find stocks with a share price of under $20 as of March 12, 2026. We sorted our results based on market capitalization and picked the 50 top stocks. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds. Finally, the 10 best stocks under $20 to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
Why do we care about what hedge funds do? 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Stocks Under $20 to Buy According to Hedge Funds
10. HP Inc. (NYSE:HPQ)
HP Inc. (NYSE:HPQ) is one of the best stocks under $20 to buy according to hedge funds. On February 25, BofA reduced its price target on HP Inc. (NYSE:HPQ) from $18 to $16 while keeping its Underperform rating. BofA pointed out that its rating reflects the “coinciding headwinds” of slower PC unit growth, pressure on margins due to memory costs, and uncertainty related to the company’s leadership transition.
Other analysts also reduced their price targets for HP Inc. (NYSE:HPQ) following its latest earnings results. On February 25, Evercore ISI cut its price target on HP Inc. (NYSE:HPQ) from $22 to $20 while maintaining its In Line rating. Evercore ISI believes that the company is currently dealing with a “tough memory environment.”
Morgan Stanley lowered its price target on HP Inc. (NYSE:HPQ) from $18 to $16 and kept its Underweight rating on the stock.
The research firm said fiscal Q1 earnings “played out largely as we expected.” HP Inc. (NYSE:HPQ) slightly reduced its EPS and free cash flow guidance as it continues to face input cost pressure and risk of weaker demand in the second half of the fiscal year. Morgan Stanley sees the stock as “cheap.” However, the firm still sees more than 14% downside risk to fiscal year 2026 EPS guidance.
HP Inc. (NYSE:HPQ) is an American multinational technology company that is known for its AI-powered devices, software, subscriptions, and services that serve professionals and businesses.
9. Ford Motor Company (NYSE:F)
Ford Motor Company (NYSE:F) is one of the best stocks under $20 to buy according to hedge funds. On March 11, Reuters reported that the National Transportation Safety Board (NTSB) will hold a hearing on March 31 to determine the probable cause of two fatal crashes involving Ford Motor Company’s (NYSE:F) hands-free advanced driver assistance system, BlueCruise.
The incidents occurred in 2024 and involved 2022 model year Ford Motor Company’s (NYSE:F) Mustang Mach-E vehicles that were operating in the company’s partial automation mode.
Both crashes were rear-end collisions in which the SUVs struck stationary vehicles at highway speeds. The incidents took place in San Antonio and Philadelphia. The crashes have raised serious questions about the limitations of Ford Motor Company’s (NYSE:F) BlueCruise system. The NTSB said it plans to vote on safety recommendations aimed at preventing similar incidents in the future.
In other news, on March 4, BofA reinstated coverage of Ford Motor Company (NYSE:F) with a $17 price target and a Buy rating. BofA believes that the company is positioned to benefit from changes in the regulatory environment under the current administration, which should allow it to focus more on its higher-margin trucks and SUVs.
The research firm also expects Ford Motor Company (NYSE:F) to make progress toward its target of an 8% EBIT margin from 4.8% in 2026 as losses in the Model E segment abate and the company’s high-margin commercial business stabilizes.
Ford Motor Company (NYSE:F) is an American multinational automotive manufacturer. Through its Ford and Lincoln brands, the company designs and manufactures a variety of vehicles, including cars, trucks, SUVs, and commercial vans. The company offers fully electric, hybrid, and traditional combustion engine options.
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.
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.
6. Viatris Inc. (NASDAQ:VTRS)
Viatris Inc. (NASDAQ:VTRS) is one of the best stocks under $20 to buy according to hedge funds. On February 27, UBS raised its price target on Viatris Inc. (NASDAQ:VTRS) from $18 to $20 and maintained a Buy rating. UBS said the company achieved expected cost-saving targets and the company’s fiscal year 2026 guidance came in above analysts’ consensus expectations.
UBS said that it is focused on Viatris Inc.’s (NASDAQ:VTRS) investor event scheduled for March 19. The firm believes the event could help outline a foundation for the company that supports long-term mid-single-digit revenue growth targets. UBS also believes that the company can deliver EPS growth at a compound annual growth rate in the teens during its next growth phase, which could lead to a higher valuation multiple for the stock. This view is supported by Viatris Inc.’s (NASDAQ:VTRS) announcement of cost-saving initiatives.
Earlier, on February 26, BofA also raised its price target on Viatris Inc. (NASDAQ:VTRS) from $10 to $12 but maintained its Underperform rating on the stock.
The research firm updated its financial model to include Viatris Inc.’s (NASDAQ:VTRS) announced cost-cutting efforts. The company plans to achieve about $400 million in net cost reductions over three years. Roughly half of the savings are expected to come from lowering the cost of goods sold.
Viatris Inc. (NASDAQ:VTRS) is a global healthcare company focused on providing access to generic and brand-name medicines across various therapeutic areas.
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