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.
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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.
8. Sibanye Stillwater Limited (NYSE:SBSW)
Sibanye Stillwater Limited (NYSE:SBSW) is one of the best hot stocks under $20 to buy. Sibanye Stillwater Limited (NYSE:SBSW) announced on February 20 operating and financial results for the full year and the six months ended 31 December 2025.
The company reported that revenue for 2025 rose 14% year-on-year to R129.7 billion ($7.3 billion), along with a 281% increase in HEPS to 244 SA cents (14 US cents), and lower basic loss per share of 183 SA cents (10 US cents), primarily due to impairments. Normalised earnings for H2 2025 were 377% higher than for H1 2025, comprising 83% of full year normalised earnings.
Management further reported that group adjusted EBITDA1 of R37.8 billion (US$2.1 billion) rose by 189% year-on-year. It declared a dividend of R3.7 billion (US$213 million) or R1.31 per share (32.68 US cents per ADR), consistent with its dividend policy and representing a 2.1% yield. Sibanye Stillwater Limited (NYSE:SBSW) stated that favorable precious metals tailwinds drove improved profitability for the company.
Sibanye Stillwater Limited (NYSE:SBSW) operates as a multinational mining and metals processing group with a diverse portfolio of operations, projects, and investments across five continents. It is primarily involved in the acquisition and exploration of platinum group materials, including palladium, rhodium, and the production of gold, along with the production and refining of iridium, ruthenium, nickel, chrome, copper, and cobalt.
7. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the best hot stocks under $20 to buy. Adaptive Biotechnologies Corporation (NASDAQ:ADPT) received several bullish rating updates following its fiscal Q4 and full-year 2025 earnings release on February 5.
On February 6, TD Cowen lifted the price target on Adaptive Biotechnologies Corporation (NASDAQ:ADPT) to $21 from $20 while maintaining a Buy rating on the shares. The rating update came after its fiscal Q4 earnings beat, with the firm raising guidance and stating that it sees confident signals on various drivers, including shift to blood-based tests, EMR integrations, new indications, community uptake, and pharma/ guidelines.
BTIG also raised the price target on Adaptive Biotechnologies Corporation (NASDAQ:ADPT) to $22 from $21 the same day, maintaining a Buy rating on the shares following the fiscal Q4 earnings release. The firm told investors in a research note that the company is firing on all cylinders and holds the position of a leading growth story in specialty labs. Adaptive Biotechnologies Corporation (NASDAQ:ADPT) also received a rating update from JPMorgan on February 6, lifting the price target on the stock to $21 from $20 and maintaining an Overweight rating on the shares.
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is involved in the development of an immune medicine platform, with its services and products including immunoSEQ, clonoSEQ, cellular therapy, and vaccines.
6. Cipher Digital (NASDAQ:CIFR)
Cipher Digital (NASDAQ:CIFR) is one of the best hot stocks under $20 to buy. On February 25, Clear Street cut the price target on Cipher Digital (NASDAQ:CIFR) to $32 from $34 and maintained a Buy rating on the shares. The firm told investors that it is remaining bullish on the stock coming out of the fiscal Q4 earnings as it sees a clear step-change in its earnings profile beginning in Q4, as lease revenue from Amazon and Fluidstack begins contributing in earnest. It believes that the inflection is underappreciated, especially given the quality of counterparties and the long-duration nature of the leases.
The rating update came after Cipher Digital (NASDAQ:CIFR) released its fiscal Q4 and full-year 2025 earnings on February 24, announcing that it rebranded from Cipher Mining to Cipher Digital, reflecting its pivot from bitcoin mining to HPC data center development. Fiscal Q4 2025 revenue came up to $60 million, with an adjusted net loss of $55 million. The company further reported that it secured 600 MW gross of total contracted HPC capacity to date across two leases, a 15-year 300 MW lease with AWS and a 10-year 300 MW lease with Fluidstack and Google. In addition, Cipher Digital (NASDAQ:CIFR) completed three bond offerings to finance HPC data center buildouts for aggregate proceeds of $3.73 billion.
Cipher Digital (NASDAQ:CIFR) develops and operates bitcoin mining data centers. The company specializes in industrial-scale Bitcoin mining and is dedicated to enhancing and fortifying the critical infrastructure of the Bitcoin network in the US.
5. Wave Life Sciences Ltd. (NASDAQ:WVE)
Wave Life Sciences Ltd. (NASDAQ:WVE) is one of the best hot stocks under $20 to buy. Wave Life Sciences Ltd. (NASDAQ:WVE) released its fiscal Q4 and full-year 2025 earnings on February 26, reporting that it is on track for INLIGHT clinical data update in 1Q 2026, with fat loss similar to GLP-1 observed at three months and anticipated to continue over time and with higher doses of WVE-007 while preserving muscle mass. The company further stated that planning is underway for the initiation of Phase 2a multidose portion of WVE-007 INLIGHT clinical trial for obesity in individuals with higher BMI and comorbidities in 1H 2026, along with additional trials of WVE-007 as an incretin add-on and as post-incretin maintenance in 2026.
Wave Life Sciences Ltd. (NASDAQ:WVE) reported cash and cash equivalents of $602.1 million as of December 31, 2025, compared to $302.1 million as of December 31, 2024, with the growth in cash year-over-year attributed primarily to financing proceeds along with the receipt of milestone payments and research funding from GSK. The company expects its current cash and cash equivalents to be sufficient to fund operations into fiscal Q3 2028. Revenue recognized in fiscal Q4 was $17.2 million compared to $83.7 million in the prior year quarter, while revenue recognized in 2025 was $42.7 million compared to $108.3 million in 2024.
Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical-stage biotechnology company that develops and commercializes ribonucleic acid (RNA) medicines through PRISM, a discovery and drug development platform. PRISM combines a deep understanding of human genetics with chemistry innovation and multiple modalities for scientific discoveries and breakthroughs that treat prevalent and rare disorders. It is developing treatments for obesity and other metabolic disorders, Duchenne muscular dystrophy, Huntington’s disease (HD), and alpha-1 antitrypsin deficiency.
4. Lionsgate Studios Corp. (NYSE:LION)
Lionsgate Studios Corp. (NYSE:LION) is one of the best hot stocks under $20 to buy. On February 9, Wells Fargo reaffirmed a Buy rating on Lionsgate Studios Corp. (NYSE:LION) and set a $12 price target. Morgan Stanley also adjusted the price target on the stock to $11 from $10 on February 6 and reiterated an Overweight rating on the shares, telling investors that the recent film success strengthens its confidence in a return to greater than $350m OIBDA in calendar year 2026. It further contended that Lionsgate Studios Corp. (NYSE:LION) is warranted a premium multiple due to industry demand for pure-play studios.
The rating update came after Lionsgate Studios Corp. (NYSE:LION) reported its fiscal Q3 results for the quarter ended December 31, 2025, reporting a revenue of $724.3 million, operating income of $36.0 million, and net loss from continuing operations attributable to shareholders of $46.2 million. Management further reported that adjusted net income from continuing operations attributable to shareholders in the quarter reached $3.9 million or $0.01 adjusted diluted net income per share on 293.9 million diluted weighted average common shares outstanding.
Lionsgate Studios Corp. (NYSE:LION) is a standalone, pure-play content company that creates, produces, and distributes premium entertainment across multiple formats and platforms. The company’s operations are divided into the following segments: Motion Picture and Television Production.
3. Alignment Healthcare, Inc. (NASDAQ:ALHC)
Alignment Healthcare, Inc. (NASDAQ:ALHC) is one of the best hot stocks under $20 to buy. Alignment Healthcare, Inc. (NASDAQ:ALHC) reported its fiscal Q4 and full year 2025 results on February 26, with full-year revenue of $3.95 billion, up 46.1% year-over-year. Adjusted gross profit for the full year was $494.8 million, while income from operations reached $14.8 million. The company exceeded the high-end of fiscal Q4 and full year guidance across all key metrics, including revenue, membership, adjusted gross profit, and adjusted EBITDA.
The company also raised its health plan membership guidance by 2,000 at the midpoint. In addition, it introduced 2026 revenue guidance of $5.14 billion to $5.19 billion, representing 30%-31% growth year-over-year, and adjusted EBITDA of $133 million to $163 million.
Alignment Healthcare, Inc. (NASDAQ:ALHC) further reported that total revenue for fiscal Q4 reached $1.012 billion, up 44.4% year-over-year. Health plan membership at the end of the quarter was around 236,300, reflecting a 25.0% year-over-year growth. The same day, William Blair reaffirmed a Buy rating on Alignment Healthcare, Inc. (NASDAQ:ALHC).
Alignment Healthcare, Inc. (NASDAQ:ALHC) offers a consumer-centric platform for delivering personalized healthcare solutions through its Medicare Advantage plans. The company also offers health options via its Alignment Health Plan.
2. TeraWulf Inc. (NASDAQ:WULF)
TeraWulf Inc. (NASDAQ:WULF) is one of the best hot stocks under $20 to buy. TeraWulf Inc. (NASDAQ:WULF) announced its fiscal Q4 and full-year 2025 financial results on February 26, reporting that FY25 marked a fundamental inflection point for the company as it executed long-term data center lease agreements totaling 522 critical IT MW, providing stable cash-flow characteristics, multi-year revenue visibility, and scalable development capacity extending through the end of the decade.
Management reported that during the full year 2025, TeraWulf Inc. (NASDAQ:WULF) commenced recurring HPC lease revenue, signed more than $12.8 billion in long-term, credit-enhanced customer contracts, and completed $6.5 billion in long-term financings to support its rapidly expanding platform.
Revenue for the full year 2025 was $168.5 million, while non-GAAP adjusted EBITDA reached $23.1 million. TeraWulf Inc. (NASDAQ:WULF) reported cash, cash equivalents, and restricted cash of $3,722.8 million as of December 31, 2025. In addition, digital asset revenue was $26.1 million for the three months ended December 31, 2025, as compared to $43.4 million for the three months ended September 30, 2025, driven primarily by lower bitcoin production and price of bitcoin during fiscal Q4.
TeraWulf Inc. (NASDAQ:WULF) operates and owns data center infrastructure specifically designed for high-performance computing and Bitcoin mining. It primarily leverages environmentally sustainable and zero-carbon energy sources, such as hydroelectric and nuclear power, to power its Bitcoin mining and other operations.
1. PG&E Corporation (NYSE:PCG)
PG&E Corporation (NYSE:PCG) is one of the best hot stocks under $20 to buy. Morgan Stanley lifted the price target on PG&E Corporation (NYSE:PCG) to $23 from $21 on February 20, reiterating an Equal Weight rating on the shares. The firm told investors that it is updating its price targets for the Regulated & Diversified Utilities / IPPs stocks in North America under its coverage for January, and noted that utilities underperformed the S&P’s return this month. Previewing Q4 earnings, Morgan Stanley anticipates some balance in the discussion of data center pipelines, given higher affordability and political concerns.
The same day, UBS also lifted the price target on PG&E Corporation (NYSE:PCG) to $20 from $18 while maintaining a Neutral rating on the shares. PG&E Corporation (NYSE:PCG) announced its fiscal Q4 and full-year 2025 results on February 12, reporting that GAAP earnings were $0.29 and $1.18 per share for fiscal Q4 and the full year 2025, respectively, compared to $0.30 and $1.15 for the same periods in 2024. Non-GAAP core earnings were $0.36 and $1.50 per share for Q4 and full year 2025, respectively, compared to $0.31 and $1.36 per share for the same periods in 2024.
PG&E Corporation (NYSE:PCG) generates, transmits, and distributes natural gas and electricity to customers. The company specializes in utility, electricity, energy, power, solar, gas, and sustainability.
While we acknowledge the potential of PCG 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 PCG and that has 100x upside potential, check out our report about this cheapest AI stock.
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