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.”
8. Cellebrite DI Ltd. (NASDAQ:CLBT)
Stock Price: $15.91
5-Year Revenue Growth Rate: 18.48%
Number of Hedge Fund Holders: 38
Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the best stocks under $20 to buy for the long term. On August 19, Craig-Hallum analyst Jeff Van Rhee maintained a Buy rating on Cellebrite DI Ltd. (NASDAQ:CLBT).
The rating update came after Cellebrite DI Ltd. (NASDAQ:CLBT) reported its fiscal Q2 2025 results on August 14 and announced the appointment of Thomas E. Hogan as CEO.
Cellebrite DI Ltd. (NASDAQ:CLBT) reported an 18% growth in revenue to $113.3 million, with ARR growing 21% to $418.9 million.
Net income for the quarter reached $19.5 million, supporting non-GAAP net income of $30.8 million and adjusted EBITDA of $27.9 million.
Cellebrite DI Ltd. (NASDAQ:CLBT) provides digital investigative solutions for the private and public sectors. The company’s services include value realization, training and advisory, technical customer support, and advanced services.
7. Remitly Global, Inc. (NASDAQ:RELY)
Stock Price: $18.62
5-Year Revenue Growth Rate: 58.45%
Number of Hedge Fund Holders: 39
Remitly Global, Inc. (NASDAQ:RELY) is one of the best stocks under $20 to buy for the long term. In a report released on August 7, Tien Tsin Huang from J.P. Morgan reiterated a Buy rating on Remitly Global, Inc. (NASDAQ:RELY), setting a price target of $25.00.
The analyst based the rating on the company’s strategic market positioning and solid financial performance, stating that Remitly Global, Inc. (NASDAQ:RELY) reported a notable beat in both adjusted EBITDA and revenue and exceeded expectations despite industry challenges.
Huang attributed the solid performance to Remitly Global, Inc.’s (NASDAQ:RELY) ability to gain market share, especially in the Mexico inbound remittance market, where it managed to surpass its average growth despite a declining market.
Another key growth driver for Remitly Global, Inc. (NASDAQ:RELY), according to the analyst, is its focus on product innovation and expansion plans beyond the core remittance services into areas like stablecoins and business payments.
Headquartered in Seattle, WA, Remitly Global, Inc. (NASDAQ:RELY) provides digital financial services for immigrants and their families.
6. UiPath Inc. (NYSE:PATH)
Stock Price: $10.89
5-Year Revenue Growth Rate: 33.58%
Number of Hedge Fund Holders: 42
UiPath Inc. (NYSE:PATH) is one of the best stocks under $20 to buy for the long term. In a report released on August 12, Matthew Hedberg from RBC Capital maintained a Hold rating on UiPath Inc. (NYSE:PATH), setting a price target of $12.00.
UiPath Inc. (NYSE:PATH) reported a 6% year-over-year growth in its fiscal Q1 2026 revenue to $357 million, while ARR rose 12% year-over-year to $1.693 billion.
The company also reported $119 million in cash flow from operations, while non-GAAP adjusted free cash flow reached $117 million.
UiPath Inc. (NYSE:PATH) develops and provides a software platform for the automation of business processes, serving the healthcare, telecommunication, public, banking, and finance industries.
The company’s offerings also include contact center automation, accounts payable automation, finance and accounting automation, and claims processing automation.
5. SentinelOne, Inc. (NYSE:S)
Stock Price: $16.64
5-Year Revenue Growth Rate: 77.61%
Number of Hedge Fund Holders: 45
SentinelOne, Inc. (NYSE:S) is one of the best stocks under $20 to buy for the long term. On August 22, Barclays analyst Saket Kalia maintained a Hold rating on SentinelOne, Inc. (NYSE:S) and set a price target of $19.00.
In other news, SentinelOne, Inc. (NYSE:S) reported on August 5 that it signed a definitive agreement for the acquisition of Prompt Security. Prompt Security is a pioneer in securing AI in runtime, safeguarding intelligent agents and preventing AI-related data leakage.
Management reported that the deal marks a part of SentinelOne, Inc.’s (NYSE:S) strategy to extend its AI-native Singularity™ Platform to “secure the rapidly growing use of generative (GenAI) and agentic AI in the workplace.”
SentinelOne, Inc. (NYSE:S) added that this includes “real-time visibility into how AI tools are accessed, what data is being shared, and automated enforcement to prevent prompt injection, sensitive data leakage, and misuse—without slowing innovation”.
SentinelOne, Inc. (NYSE:S) provides endpoint security software that detects, predicts, and models threat behavior for blocking attacks on any computing device. The company’s services include support, vigilance, and training.
4. Riot Platforms, Inc. (NASDAQ:RIOT)
Stock Price: $12.27
5-Year Revenue Growth Rate: 136.85%
Number of Hedge Fund Holders: 48
Riot Platforms, Inc. (NASDAQ:RIOT) is one of the best stocks under $20 to buy for the long term. On August 7, Riot Platforms, Inc. (NASDAQ:RIOT) was upgraded by JonesResearch to Buy from Hold with an $18 price target.
Similarly, Brett Knoblauch from Cantor Fitzgerald maintained a Buy rating on Riot Platforms, Inc. (NASDAQ:RIOT) in a report released on August 6, setting a price target of $24.00.
Analysts are thus bullish on the stock, and its median price target of $12.27 implies an upside of 44.66% from current levels.
Riot Platforms, Inc. (NASDAQ:RIOT) is a digital infrastructure and Bitcoin mining company operating in Central Texas, Kentucky, and Colorado.
The company’s primary strategic focus is on building itself as a leading vertically integrated Bitcoin mining company, standing on three pillars of strength: being a low-cost Bitcoin producer, developing and owning operations of significant scale, and building a strong balance sheet.
3. Permian Resources Corporation (NYSE:PR)
Stock Price: $13.14
5-Year Revenue Growth Rate: 45.92%
Number of Hedge Fund Holders: 49
Permian Resources Corporation (NYSE:PR) is one of the best stocks under $20 to buy for the long term. UBS raised the firm’s price target on Permian Resources Corporation (NYSE:PR) to $17 from $16 on August 20, keeping a Buy rating on the shares.
The firm told investors in a research note that persistent commodity headwinds are continuing to dampen upside potential.
Permian Resources Corporation (NYSE:PR) announced its fiscal Q2 2025 results on August 6, generating net cash provided by operating activities of $1.0 billion, adjusted operating cash flow of $817 million, and adjusted free cash flow of $312 million.
Permian Resources (NYSE:PR) is an independent natural gas and oil company specializing in acquiring, optimizing, and developing oil and natural gas properties.
Its assets and operations are concentrated in the Delaware Basin’s core and consist of more than 479,500 net leasehold acres and around 94,900 net royalty acres across the Permian Basin.
A significant majority of the company’s assets are concentrated within the Delaware Basin in Eddy and Lea Counties, New Mexico, and Reeves and Ward Counties, Texas.
2. Confluent, Inc. (NASDAQ:CFLT)
Stock Price: $17.28
5-Year Revenue Growth Rate: 45.10%
Number of Hedge Fund Holders: 50
Confluent, Inc. (NASDAQ:CFLT) is one of the best stocks under $20 to buy for the long term. On August 19, William Blair analyst Jason Ader maintained a Buy rating on Confluent, Inc. (NASDAQ:CFLT) without assigning a price target.
However, Citi analyst Tyler Radke lowered the firm’s price target on Confluent, Inc. (NASDAQ:CFLT) to $20 from $30 on August 4, keeping a Neutral rating on the shares.
The analyst told investors in a research note that Confluent, Inc. (NASDAQ:CFLT) reported a challenging Q2, with cloud optimization from its top 20 customers pressuring the outlook.
The firm added that it expects the company’s cloud growth to remain pressured into the first half of 2026, supporting the cautious outlook.
Confluent, Inc. (NASDAQ:CFLT) is involved in the creation of a data infrastructure platform focused on data in motion. The company’s products include Confluent Platform, WarpStream BYOC, Confluent Cloud, Connectors, Flink, Stream Governance, and Confluent Hub. It offers multi-data center, application architecture engagement, Amazon Web Services cloud deployment services, and security and upgrade engagement.
1. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)
Stock Price: $19.60
5-Year Revenue Growth Rate: 21.88%
Number of Hedge Fund Holders: 51
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best stocks under $20 to buy for the long term. On August 12, DA Davidson lowered the firm’s price target on Clearwater Analytics Holdings, Inc. (NYSE:CWAN) to $34 from $36, keeping a Buy rating on the shares.
The firm told investors that Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported “strong” Q2 results, reporting 70% growth in total revenue and 74% growth in adjusted EBITDA.
The firm expects compound annual growth in adjusted EBITDA of 39%-40% between 2024 and 2027, adding that the stock’s current enterprise value to expected EBITDA multiple is considerably attractive for a high-quality, vertically-focused software company.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides web-based investment portfolio accounting, reporting, and reconciliation services. The company’s operations are divided into the United States and the Rest of the World geographical segments.
While we acknowledge the potential of CWAN 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 CWAN and that has 100x upside potential, check out our report about this cheapest AI stock.
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