On Tuesday, October 28, all the three major averages finished at new heights. The broad market S&P 500 went up by 0.23%. The tech-heavy Nasdaq Composite gained 0.80% and the Dow Jones Industrial Average increased by 0.34%. All three averages had hit new all-time intraday highs as well.

This performance comes as investors are stepping more into the AI trade just before the Federal Reserve planned to announce its interest rate decision. Investors are also looking for a sign from Fed Chair Jerome Powell that there will be another interest rate cut at the central bank’s final meeting of this year in December.

The market reacted positively as tensions between the US and China appeared to ease on Monday. This was ahead of an important meeting between President Donald Trump and Chinese President Xi Jinping, which will take place on Thursday. On Monday, President Trump stated that the two countries are expected to agree on a trade deal. This meeting could include talks about China’s restrictions on rare earth minerals, soybean purchases, and TikTok.

In other news, many of the “Magnificent Seven” are scheduled to report earnings this week. The earnings season is off to a strong start. According to FactSet data, about one-third of S&P 500 companies have reported earnings, with 83% of these companies beating earnings expectations.

Mike Dickson, head of research and quantitative strategies at Horizon Investments, told CNBC:

“Obviously, valuations have been fairly elevated by historical standards, and we’ve probably gotten about all the help we’re going to get out of the Fed without something bad [going] wrong. This has got to be led by the earnings side of things, and quite frankly, to start, we have absolutely seen that. We got to see what these behemoths have to say.”

With this background in mind, let’s take a look at the 10 stocks under $20 to buy according to analysts.

Our Methodology

To compile our list of the 10 stocks under $20 to buy according to analysts, we used the Finviz stock screener to look for stocks with a share price of less than $20 as of October 28, 2025. We sorted our results based on market capitalization and picked the top 50 stocks. Next, we focused on the stocks that analysts believe have the most potential for growth. Finally, we ranked the top 10 stocks under $20 to buy based on their average price target upside potential according to analysts as of October 28, 2025.

Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds.

Why do we care about what hedge funds do? 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 Stocks Under $20 to Buy According to Analysts

10. Albertsons Companies, Inc. (NYSE:ACI)

Share Price: $18.47

Average Price Target Upside Potential According to Analysts: 29.94%

Number of Hedge Fund Holders: 49

Albertsons Companies, Inc. (NYSE:ACI) is one of the top stocks under $20 to buy according to analysts. On October 20, Tigress Financial Partners increased its price target on Albertsons Companies, Inc. (NYSE:ACI) from $28 to $29 and kept a Buy rating.

This decision came after Albertsons Companies, Inc. (NYSE:ACI) shared strong results for Q2 fiscal year 2025. The company reported steady sales growth, better profitability, and progress in its digital transformation investments.

Tigress Financial Partners pointed out that Albertsons Companies, Inc. (NYSE:ACI) is growing through AI-powered digital sales. The firm also highlighted the company’s high-margin retail media platform and expanding loyalty programs as key reasons behind the increase in price target.

The research firm sees Albertsons Companies, Inc.’s (NYSE:ACI) Media Collective as an important long-term growth driver. The firm expects it to help increase both revenue and margins over the next three years.

Tigress Financial Partners also noted the company’s recent $750 million accelerated share repurchase agreement. Albertsons Companies, Inc. (NYSE:ACI) is investing in digital growth initiatives, new store openings, and store upgrades.

Previously, on October 16, JPMorgan had also maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) with a price target of $24 after the results for the second quarter of fiscal 2025 were reported.

Albertsons Companies, Inc. (NYSE:ACI) is a leading food and drug retailer in the US. It operates stores under 22 well-known brands such as Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, ACME, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market.

9. PG&E Corporation (NYSE:PCG)

Share Price: $16.12

Average Price Target Upside Potential According to Analysts: 30.27%

Number of Hedge Fund Holders: 77

PG&E Corporation (NYSE:PCG) is one of the top stocks under $20 to buy according to analysts. On October 24, Wolfe Research increased its price target on PG&E Corporation (NYSE:PCG) from $19 to $21 and kept an Outperform rating.

Wolfe Research pointed to PG&E Corporation’s (NYSE:PCG) impressive long-term growth prospects. The company projects its rate base to grow by 9% and EPS to also grow by at least 9% from 2026 to 2030.

Wolfe Research also praised PG&E Corporation’s (NYSE:PCG) CEO Patti Poppe, highlighting improvements in regulatory relations and better engagement with policymakers under her leadership.

PG&E Corporation (NYSE:PCG) has taken important steps to reduce wildfire risks. Wolfe Research noted that the company is working on a significant undergrounding project. PG&E Corporation (NYSE:PCG) aims to keep customer bills at or below the expected rate of inflation with its “simple affordable model.”

Additionally, the research firm pointed out that PG&E Corporation’s (NYSE:PCG) expected growth in rate base and earnings puts it among the leading companies in the industry. According to Wolfe Research, the company also benefits from California’s supportive regulatory environment.

PG&E Corporation (NYSE:PCG) is an energy holding company whose subsidiary, Pacific Gas and Electric Company, provides electricity and natural gas to customers in Northern and Central California.