In this article, we will look at the 10 Cheap Stocks to Buy Under $20.
On April 23, Ed Yardeni, Yardeni Research founder, appeared on CNBC’s ‘Closing Bell’ to talk about his S&P target, the market, and more. He has a 7,700 target for the S&P and believes that it is still achievable. It did not look as achievable back on March 30 when we made a low on the pullback, but we have now seen a “remarkable recovery”, which Yardeni thinks is because the earnings story has been great. He attributed this trend to the economy, which he called “amazingly resilient”.
READ ALSO: 8 Best Low Priced Stocks to Buy Right Now AND 8 Best Bitcoin Stocks to Buy Now.
He thus thinks that the March 30 low was the low, and we will not see those levels again in 2026. While this doesn’t come with a money-back guarantee, he does believe that the earnings are going to power the markets higher. We had a pretty significant selloff that offered a good opportunity. Yardeni further stated that the problem is that everybody now knows that geopolitical crises are great buying opportunities, and now, when we get one, you don’t really have much time to act.
With these broader market trends in view, let’s look at the best cheap stocks to buy under $20.
Our Methodology
We used the Finviz stock screener to make a list of the best stocks under $20 with a forward P/E below 15. We then picked the top 10 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Note: All data was recorded on April 24.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Cheap Stocks to Buy Under $20
10. Ecopetrol S.A. (NYSE:EC)
Ecopetrol S.A. (NYSE:EC) is one of the best cheap stocks to buy under $20. On April 23, Ecopetrol S.A. (NYSE:EC) announced that it entered into a Share Purchase Agreement with Jive, Yellowstone, and Bloco Somah Printemps Quantum for the acquisition by Ecopetrol S.A., or one of its affiliates or subsidiaries within the Ecopetrol Group, of 120,813,490 shares of Brava, representing approximately 26% of Brava’s share capital. Taken together, they comprise a group of notable shareholders holding approximately 26% of the outstanding common shares of the Brazilian company Brava Energia S.A.
Management stated that Brava was incorporated in 2024 from the merger between 3R Petroleum Óleo e Gás S.A. and Enauta Participações S.A., and is positioned as the second-largest independent company listed in the Brazilian market in terms of reserves and production.
Ecopetrol S.A. (NYSE:EC) also reported that the completion of the transaction is subject to certain customary conditions precedent, including, among others, the grant of certain waivers and consents considering Brava’s financing instruments and relevant commercial agreements, approval by Brazil’s Administrative Council for Economic Defense (CADE), as well as the purchase by Ecopetrol S.A., or one of its affiliates or subsidiaries within the Ecopetrol Group, of the number of shares required to achieve a 51% controlling stake of Brava’s voting share capital.
Ecopetrol S.A. (NYSE:EC) explores, develops, and produces crude oil and natural gas. Its operations are divided into the following segments: Exploration and Production, Transportation and Logistics, and Refining and Petrochemicals.
9. Wipro Limited (NYSE:WIT)
Wipro Limited (NYSE:WIT) is one of the best cheap stocks to buy under $20. On April 24, Wipro Limited (NYSE:WIT) announced a strategic partnership with Kongsberg Digital for the joint deployment of next‑generation AI‑powered Digital Twin solutions for the Energy & Utilities Sector. Kongsberg Digital is a global leader in advanced engineering and industrial digitalization. Management stated that the collaboration combines Wipro Limited’s (NYSE:WIT) consulting-led approach and its AI-powered Wipro Intelligence™ solutions with Kongsberg Digital’s Industrial Work Surface solution, allowing the two companies to jointly enable more efficient, reliable, and safer operations across complex asset networks.
Srikumar Rao, Managing Partner and Global Head of Engineering, Wipro Limited (NYSE:WIT), stated that at the core of the collaboration is a shared vision to rethink how industrial intelligence is designed and applied, with the collaboration enabling enterprises to embed autonomy into their operations, allowing them to “anticipate change, navigate complexity, and build resilience at scale”.
Wipro Limited (NYSE:WIT) further reported that as part of the agreement, the two companies will advance a joint roadmap to scale AI‑powered digital twin capabilities across Energy & Utilities environments.
Wipro Limited (NYSE:WIT) is a global information technology, outsourcing, and consulting company that develops and integrates solutions. Its operations are divided into the following segments: Information Technology Services, India State Run Enterprise Services, and Information Technology Products.
8. Vodafone Group Public Limited Company (NASDAQ:VOD)
Vodafone Group Public Limited Company (NASDAQ:VOD) is one of the best cheap stocks to buy under $20. On April 21, Deutsche Bank lifted the price target on Vodafone Group Public Limited Company (NASDAQ:VOD) to 155 GBp from 150 GBp while reaffirming a Buy rating on the shares. In a separate development, Vodafone Group Public Limited Company (NASDAQ:VOD) reported on April 22 that Vodafone Business and Google Cloud announced an expansion of their strategic partnership with two new solutions to equip small-and medium-sized businesses (SMBs) with advanced cybersecurity and agentic AI.
Management reported that Vodafone Business is launching a new managed detection and response (MDR) service enabled by Google Security Operations that aims at boosting protection for customers from increasingly frequent and sophisticated cyber threats. Vodafone Group Public Limited Company (NASDAQ:VOD) is also introducing Vodafone Business AI Concierge with Google Gemini, which is built on Google Cloud’s Gemini Enterprise Agent Platform and Gemini models and is the first in a suite of planned agentic AI solutions. This multi-modal, AI agent, including voice and data, is designed to operate autonomously within a business environment.
Vodafone Group Public Limited Company (NASDAQ:VOD) is involved in telecommunications services in Europe and internationally, offering mobile services that allow customers to text, call, and more.
7. Cemex S.A.B. de C.V. (NYSE:CX)
Cemex S.A.B. de C.V. (NYSE:CX) is one of the best cheap stocks to buy under $20. On April 24, RBC Capital lifted the price target on Cemex S.A.B. de C.V. (NYSE:CX) to $12.75 from $11.25 while reaffirming a Sector Perform rating on the shares. The firm told investors in a research note that management was cautiously optimistic on its fiscal Q1 earnings call in a backdrop featuring geopolitical uncertainty and volatility of fuel and energy costs, after the quarter delivered a healthy beat. It further stated that rating agencies are warming to Cemex S.A.B. de C.V. (NYSE:CX) as the group’s performance continues to improve.
The same day, JPMorgan also lifted the price target on Cemex S.A.B. de C.V. (NYSE:CX) to $14.50 from $14 and maintained an Overweight rating on the shares. The firm lifted its estimates to take into account the company’s “strong” fiscal Q1 report. However, it also told investors in a research note that Cemex’s (NYSE:CX) guidance was left unchanged despite the fiscal Q1 beat, as it pointed to a lack of visibility and added uncertainty regarding the ongoing conflict in Iran.
Cemex S.A.B. de C.V. (NYSE:CX) is a global construction materials company that offers ready-mix concrete, cement, aggregates, and urbanization solutions. Its operations are divided into the following geographical segments: Mexico, United States, Europe, Middle East, Africa and Asia (EMEAA) and South, Central America and the Caribbean (SCA&C).
6. Infosys Limited (NYSE:INFY)
Infosys Limited (NYSE:INFY) is one of the best cheap stocks to buy under $20. On April 24, BMO Capital cut the price target on Infosys Limited (NYSE:INFY) to $15 from $20 and maintained a Market Perform rating on the shares. The firm told investors in a research note that the company had a weaker close to fiscal year 2026, with constant currency revenue growth below the firm’s forecast. It also stated that the below consensus FY27 guidance reflects the ramp-down of a large European manufacturing client alongside continued competitive industry in AI-led services.
Infosys Limited (NYSE:INFY) also received a rating update from Susquehanna on April 14. The firm cut the price target on the stock to $16 from $20, maintaining a Neutral rating on the shares and saying that it has previewed its fiscal Q4 results, where it thinks EURS (Energy, Resources) sounds promising, Manufacturing will be resilient, and Banking (BFS) may grow above the company average. However, the firm also added that while FX looks good, Infosys (NYSE:INFY) is likely not out of the woods in Hi Tech and Retail, and third-party revenue may remain a headwind.
Infosys Limited (NYSE:INFY) is a digital services and consulting company that provides end-to-end business solutions. The company’s operations are divided into the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services; Manufacturing, Hi-Tech, Life Sciences, and All Other.
While we acknowledge the potential of INFY 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 INFY and that has 100x upside potential, check out our report about the cheapest AI stock.
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