In this article, we will look at the 10 Best Stocks Under $20 to Buy for the Long Term.
On August 22, Manpreet Gill of Standard Chartered Wealth Management appeared on CNBC, stating that he sees a cut in the Federal Reserve’s upcoming September meeting and that it’s time to “lock in treasury yields”, with a “preference for the 5-7 year range”.
Gill stated that he is looking for a cut, and while it might be a tight race, on balance it is the growth side, along with the fact that long-term inflation expectations remain very well controlled. He thinks that these factors, at the end of the day, would push the Fed into a cut.
He added that this holds particularly true because policy is arguably on the tighter side already, and one cut won’t make it “very, very loose”.
READ ALSO: 12 Most Promising Future Stocks According to Wall Street Analysts and 10 Best Stocks to Invest in For the Long Term.
Gill further stated that he is not losing perspective on why he’s focused on the cut; stabilizing growth is important for the market, and while growth data is slowing, whether it can attain the soft landing and stabilization at a positive level remains a question.
He added that a Fed rate cut is considered an assumption that takes the market there, but what’s more important is where the growth numbers ultimately end up, with or without a Fed rate cut. For the equity market in particular, he thinks that is going to be the most important thing.
With these trends in view, let’s look at the best stocks under $20 to buy for the long term.
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Our Methodology
We conducted a consensus and used Finviz to compile an initial list of top stocks with a 5-year revenue growth above 10% and stock price under $20. We then selected the top 10 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on August 21.
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 Under $20 to Buy for the Long Term
10. Freshworks Inc. (NASDAQ:FRSH)
Stock Price: $13.20
5-Year Revenue Growth Rate: 33.11%
Number of Hedge Fund Holders: 35
Freshworks Inc. (NASDAQ:FRSH) is one of the best stocks under $20 to buy for the long term. In a report released on August 11, Brian Schwartz from Oppenheimer reiterated a Buy rating on Freshworks Inc. (NASDAQ:FRSH) with a price target of $19.00.
The rating update came after Oppenheimer hosted the CFO of Freshworks Inc. (NASDAQ:FRSH), Tyler Sloat, at its 28th Annual Technology, Internet, and Communications Conference the same day.
Similarly, in a report released on July 29, Matthew VanVliet from Cantor Fitzgerald also maintained a Buy rating on Freshworks Inc. (NASDAQ:FRSH) with a price target of $20.00.
Freshworks Inc.’s (NASDAQ:FRSH) median price target of $13.20 implies an upside of 47.73% from current levels.
Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides software-as-a-service products. The company’s products include Freshservice, Freshdesk, Freshsales, Freshmarketer, and Freshteam.
9. Snap Inc. (NYSE:SNAP)
Stock Price: $7.05
5-Year Revenue Growth Rate: 23.99%
Number of Hedge Fund Holders: 35
Snap Inc. (NYSE:SNAP) is one of the best stocks under $20 to buy for the long term. In a report released on August 11, Mark Shmulik from Bernstein maintained a Hold rating on Snap Inc. (NYSE:SNAP) and set a price target of $9.00.
Similarly, Brad Erickson from RBC Capital maintained a Hold rating on the stock on August 6, setting a price target of $10.00.
Snap Inc. (NYSE:SNAP) also received a Hold rating from Piper Sandler’s Thomas Champion in a report issued the same day.
The stock’s median price target of $7.05 implies an upside of 27.66% from current levels.
Snap Inc. (NYSE:SNAP) is a technology company that runs Snapchat as a visual messaging social application. Snapchat is the company’s core mobile application that employs augmented reality in its various “Lenses.”
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