In this article, we will look at the 10 Hot Stocks Under $20 to Buy.
On February 24, Luke Barrs, Goldman Sachs Asset Management chief business and client officer for fundamental equities, appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends and the state of the economy. He was of the view that we have seen, over the last couple of quarters, a little bit more focus on the outcomes from AI and thus far, it has really been about the capital expenditures story, those hyperscalers delivering the LLM and the model frameworks that are going to be disruptive, but without necessarily the scrutiny on where it is going to disrupt and what type of industries that is going to have a challenge for.
He thinks that the market, at the moment, is a little bit shoot first and ask questions later, and so it has been a bit indiscriminate in terms of how that is applied. However, there will be disruptions that come down the path as we see some of these models put into development and ultimately into utilization.
READ ALSO: 11 Best Strong Buy Healthcare Stocks to Invest In AND 11 Best Transportation Stocks to Buy According to Wall Street Analysts.
Barrs further stated that he is still constructive, broadly speaking, with a growth backdrop that is still relatively healthy, monetary and fiscal policy support through the course of this year, and the belief that the Fed would still cut twice, likely through the summer. In addition, we have tax rebates that will help support the consumer side of things. That is not to say, according to him, that the consumer would not stay a little bit bifurcated, and we won’t have a little bit more of this K-shaped economy type play out over the next couple of quarters. He further stated that while the S&P is flat over the last four months, under the surface, we have seen an aggressive cyclical rotation. The market has realised that there is massive disruption ahead, which is causing investors to recalibrate portfolios.
With these broader market trends in view, let’s look at the best hot stocks under $20 to buy now.
Our Methodology
We sifted through stock screeners and financial media reports to compile a list of the best stocks under $20 that have gained at least 20% over the past 6 months and that analysts are bullish on. We then selected the top 10 stocks most popular among elite hedge funds as of Q3 2025, sourcing the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 25.
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 Hot Stocks Under $20 to Buy
10. LifeStance Health Group, Inc. (NASDAQ:LFST)
LifeStance Health Group, Inc. (NASDAQ:LFST) is one of the best hot stocks under $20 to buy. On February 26, Canaccord lifted the price target on LifeStance Health Group, Inc. (NASDAQ:LFST) to $10 from $9 while keeping a Buy rating on the shares. The firm stated that fiscal Q4 results and 2026 guidance contemplate strong growth to continue, with revenue and adj-EBITDA rising 15% and 24% at the midpoints, adding that the reimbursement rate and utilization environment remain favorable.
The rating update came after LifeStance Health Group, Inc. (NASDAQ:LFST) announced financial results for fiscal Q4 and full year 2025 on February 25, reporting fiscal Q4 revenues of $382.2 million, up 17% compared to the prior year period, and full year revenue of $1.424 billion, up 14%. Clinician base also rose 9% to 8,040 clinicians, a sequential net increase of 44 in fiscal Q4 and 657 for the full year.
LifeStance Health Group, Inc. (NASDAQ:LFST) further reported that visit volumes for the quarter increased 18% to 2.4 million, while full year visit volumes increased 14% to 9.0 million. For the full year 2026, the company is expecting revenue of $1.615 billion to $1.655 billion, center margin of $526 million to $550 million, and adjusted EBITDA of $185 million to $205 million.
LifeStance Health Group, Inc. (NASDAQ:LFST) provides outpatient mental health services, including psychological and neuropsychological testing, psychiatric evaluations and treatment, and individual, family, and group therapy. The company operates through a mental health platform and also offers virtual care via its online delivery platform, as well as in-person care at centers located in the United States.
9. Ondas Inc. (NASDAQ:ONDS)
Ondas Inc. (NASDAQ:ONDS) is one of the best hot stocks under $20 to buy. On February 23, Northland Securities maintained a Buy rating on Ondas Inc. (NASDAQ:ONDS) with a price target of $16.
In a separate development, Ondas Inc. (NASDAQ:ONDS) announced on February 17 that its subsidiary Sentrycs successfully delivered and deployed its C-UAS solutions to a German State Police office. Sentrycs is a global leader in counter-drone (C-UAS) technology based on Protocol Manipulation.
Management reported that the milestone highlights the increasing demand for lawful, non-disruptive drone mitigation, along with Sentrycs’ growing role in European law enforcement. The successful delivery and deployment coincide with the upcoming launch of Sentrycs Scout, which is Sentrycs’ new man-carried system, at the Enforce Tac exhibition in Germany. Ondas Inc. (NASDAQ:ONDS) reported that the launch is a notable milestone for the company, as it marks its entry into a new multi-billion-dollar segment of the rapidly expanding counter-UAS market.
Ondas Inc. (NASDAQ:ONDS) also received a rating update from Lake Street on February 9, with the firm reaffirming a Buy rating on the stock and setting a price target of $19.00.
Ondas Inc. (NASDAQ:ONDS) develops, markets, and sells wireless radio systems for secure, wide-area mission-critical business-to-business networks. The company’s operations are divided into the Ondas Networks and Ondas Autonomous Systems segments.
