In this article, we will take a look at the best US stocks to buy under $20.

Every investor is looking to invest in the ‘best’ stock, but that word means something different to each of us. The real differentiation comes when that stock also trades at a low price. Low-priced equities are often viewed with skepticism. But in today’s market, low-priced doesn’t necessarily mean low-quality. In fact, data suggest that many cheap stocks consistently receive “buy” and “strong buy” ratings from top Wall Street analysts.

While investors pile into stocks tied to the crowded AI trade, Wells Fargo’s Scott Wren, who appeared on CNBC on November 20, emphasised “the power of diversification.” According to Wren, the market is moving into sectors, such as financials, industrials, and utilities, as he believes that this shift is a “cheaper way to get some exposure” to AI than directly investing in the tech sector. He adds that the diversification shouldn’t be too far away from the companies that are really growing. His comments suggest that attractive value can be found outside the market’s most popular themes.

With this diversification in mind, we have compiled a list of the best U.S. under $20 stocks to buy now. These stocks represent firms across various industries, including healthcare, defence, and communication services.

Our Methodology

Our list of the best U.S. stocks priced under $20 is based on selecting leading companies with strong potential. We began by filtering for U.S. stocks having a market capitalisation of more than $2 billion and trading under $20. From this pool, we selected companies with an upside potential of over 20%. We then shortlisted the top 10 companies with the highest upside potential and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 2025.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10. CleanSpark, Inc. (NASDAQ:CLSK)

Upside Potential as of November 26, 2025: 82.16%

Number of Hedge Fund Holders: 34

Share Price as of November 26, 2025: $13.45

On November 25, CleanSpark, Inc. (NASDAQ:CLSK) reported its third-quarter results, in which it delivered revenue of $766.3 million, an impressive 102% increase from last year. Additionally, the company achieved a net income of $364.5 million, a strong rebound from the previous year’s net loss. Looking ahead, the company will focus on developing AI data center capabilities while winning new tenants for sites in Sandersville, Georgia, and Texas.

Entering 2026, management anticipates an EPS of $0.18 in Q1 2026 and $0.23 in Q2 2026, with annual guidance of $0.91 for 2026. To support the accelerating growth, CleanSpark, Inc. (NASDAQ:CLSK) will expand its power and land offerings.

With an emphasis on AI, CleanSpark, Inc. (NASDAQ:CLSK) is uniquely positioned in its market. As stated by CFO Gary Vecchiarelli,

“We are one of the first, if not the only company, which has a scaled cash-flowing business that is also using Bitcoin as a productive capital asset.”

According to TheFly, JPMorgan upgraded CleanSpark, Inc. (NASDAQ:CLSK) to Overweight from Neutral, with an unchanged $14 price target on November 24, right before the company’s third-quarter results. The firm highlighted the company’s latest share pullback while praising it for 200 MW of “critical IT capacity” at the 285 MW facility it recently acquired in Texas. What’s even more interesting is that the “flurry of deal activity” in high-performance computing is strengthening JPMorgan’s confidence in the bitcoin miners.

CleanSpark, Inc. (NASDAQ:CLSK) is a Nevada-based bitcoin mining company specializing in data centers. Incorporated in 1987, the company’s infrastructure supports Bitcoin.

9. Fermi Inc. (NASDAQ:FRMI)

Upside Potential as of November 26, 2025: 102.40%

Number of Hedge Fund Holders: NA

Share Price as of November 26, 2025: $15.81

As of November 26, Fermi Inc. (NASDAQ:FRMI) is a consensus Buy with all the analysts covering it assigning a Buy or equivalent rating. With a consensus 1-year median price target of $32, the stock has an upside of over 102%.

On November 12, Cantor Fitzgerald reaffirmed an ‘Overweight’ rating on Fermi Inc. (NASDAQ:FRMI), with an unchanged price target of $33. This potential upside of about 108% is attributed to the company’s huge data center development in Texas.

The company’s 5,200-acre campus in Amarillo, Texas, is poised to become the largest artificial intelligence data center campus in the United States if executed well, the firm highlighted. By 2038, this site is anticipated to deliver 11 GW of tenant-direct power, along with nearly 15 million square feet of data center shells, Cantor Fitzgerald added.

What’s even more interesting is that Fermi Inc. (NASDAQ:FRMI) is well-positioned to achieve approximately 1.1 GW in new power by the end of 2026, which the research firm believes is unmatched.

On the same day, Nicholas Amicucci, an analyst at Evercore ISI, reiterated the ‘Buy’ rating on  Fermi Inc. (NASDAQ:FRMI), while keeping a price target of $37. This price target implies a potential surge of about 134% from the current price level.

Fermi Inc. (NASDAQ:FRMI) is a Texas-based energy and hyperscaler development company specializing in infrastructure for the development of AI. Founded in January 2025, the company is focused on “powering the AI needs of tomorrow.”