This article looks at the 13 Most Undervalued Stocks Under $20 to Buy.
The Nasdaq Composite slumped 3% last week, while the S&P 500 index was down 1.8% with leading AI stocks losing over $820 billion in market capitalization, as concerns over overvaluation sparked a substantial sell-off.
The plunge coincided with Goldman Sachs CEO David Solomon’s comments at an investment summit in Hong Kong on November 4, in which he expected a 10-20% market correction over the next 12 to 24 months. The statement was seconded by Morgan Stanley CEO Ted Pick, who anticipated a drawdown of anywhere between 10% to 15%.
Last week, Andrew Bailey, Governor of the Bank of England, also mentioned the likelihood of an ongoing AI bubble in the stock markets, while expressing doubts surrounding returns from the sector.
However, Skanska CEO Anders Danielsson has dismissed concerns of a slowdown, saying that the Swedish firm is still seeing a robust pipeline for new data centers in the United States, Europe, and the United Kingdom.
In other related news, on November 5, Torsten Slok, the chief economist at Apollo Global Management, talked to CNBC about the ‘bifurcation’ between the Magnificent 7 and the other 493 stocks on the S&P 500 index since the start of 2025, in terms of performance, earnings, and profit margins.
Slok displayed a graph showing that while earnings expectations for the Magnificent 7 had been climbing, the line for the S&P 493 was going down. He further emphasized that the broad market index was largely being driven by these leading technology stocks, which now make up about two-fifths of the market cap for the S&P 500. He described it as a problem for investors, since the index was not diversified enough due to the Magnificent 7’s high concentration.
With all the focus on the market’s stretched valuation, let’s shift focus and see some of the best undervalued stocks to buy now.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
Our Methodology
We used screeners to identify U.S.-based listed companies with a stock price under $20 and a forward P/E ratio of less than 15. The market cap criterion for this article was set to $2 billion or more. For the forward P/E ratio, we put a lower band of 7, because beyond this point, we may be stepping into deeply undervalued stocks that require further study to understand the reason for the discount. All data is as of the close of business on Thursday, November 6, 2025.
From this pool of companies, we selected the top 13 stocks with the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of prominent hedge funds as of Q2 2025. We then ranked these stocks in ascending order of the number of hedge funds. Wherever two or more stocks had the same number of hedge funds, we used market cap as a tiebreaker between them.
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).
13 Most Undervalued Stocks Under $20 to Buy
13. Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)
Share Price: $11.66
Forward P/E: 14.63
Number of Hedge Fund Holders: 28
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 31, Piper Sandler lifted its price target on the stock to $13 from $11, while maintaining an Overweight rating on its shares.
The adjustment followed the company’s third quarter 2025 earnings call on October 30. Piper Sandler noted the strong quarterly results that beat Wall Street’s estimates for both revenue and earnings.
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) reported a net revenue of $785 million, up 12% from the prior year’s period and beating forecasts of $774 million. The results reflected the strength of the company’s diversified business portfolio.
Speciality net revenue was up 8%, while revenue for Affordable Medicines also grew 8% during the quarter. AvKARE was another major contributor, with the segment top line surging 24% year-over-year.
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)’s net income stood at $54.4 million, improving substantially from a net loss of $50.6 million last year. Diluted EPS was posted at $0.17, beating estimates by four cents and up 6% year-over-year.
Adjusted EBITDA for the quarter was $160 million, up 1% year-over-year, driven by higher revenue. However, the figure was partially offset by investments on new launches and a raise in R&D expenditure.
The company also updated its guidance for the full year 2025. While net revenue is expected to remain in the same range of $3 billion to $3.1 billion, adjusted EPS is now anticipated between $0.75 and $0.80, up from the previous guidance of $0.70 to $0.75.
Moreover, the lower end of adjusted EBITDA has been raised by $10 million, with the new range now between $675 million and $685 million.
The stock has had robust returns in 2025, surging over 50% year-to-date.
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) is a biopharmaceutical company with expertise in developing, marketing, and distributing a wide range of medicines.
12. Banc of California, Inc. (NYSE:BANC)
Share Price: $17.10
Forward P/E: 14.15
Number of Hedge Fund Holders: 30
Banc of California, Inc. (NYSE:BANC) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 6, the company announced that it would pay a quarterly cash dividend of $0.10 per share to all common shareholders of record as of December 15, 2025. The payment is scheduled for January 2, 2026.
Moreover, according to the press release, all shareholders on record as of November 20 for the company’s Series F preferred stock will also receive a per-depository-share cash dividend of $0.4845 on December 1.
In other news, on October 27, Citigroup analyst Benjamin Gerlinger upgraded the stock’s rating to Buy from Hold and lifted the price target to $21.50 from $18 per share, citing a promising earnings outlook for fiscal 2026.
The firm also anticipates Banc of California, Inc. (NYSE:BANC)’s lending business, lower deposit costs, and asset repricing to continue supporting improvement in net interest margin (NIM). Moreover, Citigroup also added that the bank’s NIM could end up around the higher 3.40s next year if the Federal Reserve goes ahead with further rate cuts this year.
Banc of California, Inc. (NYSE:BANC) is a bank holding company that owns the Banc of California. It has a market cap of $2.71 billion and manages over $34 billion in assets. The stock has gained 13% year-to-date.
11. Baxter International Inc. (NYSE:BAX)
Share Price: $17.98
Forward P/E: 7.59
Number of Hedge Fund Holders: 31
Baxter International Inc. (NYSE:BAX) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 31, Argus Research downgraded its rating of the stock to Hold from Buy.
The adjustment followed the company’s third-quarter fiscal 2025 earnings call a day prior, in which it announced a significant reduction to its quarterly dividend to a mere $0.01 per share, starting January 2026. It is worth noting that the Board declared a quarterly dividend of $0.17 per share in July, which was paid out on October 1.
The management expects the move to help strengthen annual cash flow by well over $300 million. The cash will be used to support the company’s de-leveraging efforts to improve the balance sheet position.
In a research note to investors, Argus Research argued that the firm sees a slower recovery for Baxter International Inc. (NYSE:BAX) under the current CEO, given the uncertainty around Novum, coupled with the company’s weak short-term outlook, including for its IV fluid solutions business.
The medical products maker reported a revenue of $2.84 billion for the third quarter. While this was up 5% year-over-year, it missed estimates of $2.88 billion, due to the continued impact of disruptions at its North Cove facility, which was flooded and shut last year following a hurricane.
As a result, the company now expects its annual sales growth to be between 4% and 5%, down from a prior forecast of 6% to 7%. The management has also trimmed its full-year adjusted EPS forecasts to $2.35 to $2.40, from an earlier guidance of $2.42 to $2.52 per share.
The stock has plunged 19% over the past month, taking its year-to-date slump to nearly 40%.
Baxter International Inc. (NYSE:BAX) is a global medical technology company offering a wide range of healthcare products.
10. Upwork Inc. (NASDAQ:UPWK)
Share Price: $16.15
Forward P/E: 12.16
Number of Hedge Fund Holders: 32
Upwork Inc. (NASDAQ:UPWK) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 5, Roth Capital analyst Rohit Kulkarni lifted his price target on the stock to $22 from $19, while maintaining a Buy rating on its shares.
The firm’s adjustment followed the company’s third-quarter fiscal 2025 earnings results on November 3, in which a return to gross services volume (GSV) growth after five quarters of headwinds helped post a record quarterly revenue of $201.7 million and adjusted EBITDA of $59.6 million. Net income stood at $29.3 million, up 6% year-over-year.
President and CEO Hayden Brown credited the strong results to Upwork Inc. (NASDAQ:UPWK)’s work over the last year and a half to prepare the business for the era of AI. The efforts paid dividends, as Q3 saw a 45% year-over-year increase in clients participating in AI projects on the platform, helping GSV grow.
Buoyed by the results, Upwork Inc. (NASDAQ:UPWK) raised its full-year guidance to between $782 million and $787 million for revenue, and in the range of $222 million to $225 million for adjusted EBITDA. Moreover, the company said that it was confident of achieving its long-term goal of an adjusted EBITDA margin of 35%.
In a research note to investors, Roth Capital highlighted Upwork’s revenue and EBITDA beats during the third quarter, along with the revised outlook for the year. The analyst believes the raised revenue guidance for Q4 reflects an expected surge in growth and is above the estimates of several Wall Street analysts. However, the EBITDA guidance mirrors consensus projections.
Upwork Inc. (NASDAQ: UPWK) is a work marketplace that connects businesses with talented professionals from around the world.
9. Valley National Bancorp (NASDAQ:VLY)
Share Price: $10.80
Forward P/E: 11.26
Number of Hedge Fund Holders: 32
Valley National Bancorp (NASDAQ:VLY) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 27, TD Cowen lifted its price target on the stock to $15 from $14, while maintaining a Buy rating on its shares.
The firm said the company is on track to expand its net interest margin (NIM) better than competitors, given its lower deposit costs, robust commercial and industrial (C&I) lending pipeline, and benefits from asset repricing.
TD Cowen’s adjustment on the stock followed the company’s Q3 FY25 earnings call on October 23, during which management noted a 56-basis-point reduction in its average cost of deposits since Q3 2024. The company added that it expects this momentum to continue through the fourth quarter and into fiscal 2026.
Moreover, this was the second consecutive quarter of 3% NIM growth, and the sixth successive quarter of improvement for the metric, driven by asset repricing and sequential increases in average non-interest deposits.
Valley National Bancorp (NASDAQ:VLY) posted a net income of $163.4 million for the quarter, up from $133.2 million in the prior year’s period. Diluted EPS stood at $0.28, beating expectations of $0.26 per share.
CEO Ira Robbins credited the results to the company’s strong operational momentum, rising core customer deposits, net interest, and fee income.
The stock has returned nearly 21% year-to-date as of the close of business on November 7.
Valley National Bancorp (NASDAQ:VLY) is the holding company for Valley National Bank.
8. Mattel, Inc. (NASDAQ:MAT)
Share Price: $18.67
Forward P/E: 12.05
Number of Hedge Fund Holders: 33
Mattel, Inc. (NASDAQ:MAT) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 27, JPMorgan’s Christopher Horvers slashed his price target on the stock to $23 from $25, while keeping a Neutral rating on its shares.
The adjustment followed the company’s third-quarter earnings results on October 21, which missed Wall Street’s estimates for both revenue and profit, as tariffs took a toll on its sales in North America.
The Barbie-maker posted net sales of $1.74 billion, down 6% year-over-year and falling shy of expectations of $1.83 billion. The company’s net income stood at $278 million, down $94 million from the prior year’s period. EPS was reported at $0.89 EPS, missing estimates of $1.05.
In a research note to investors, the JPMorgan analyst said that Mattel, Inc. (NASDAQ:MAT) missed revenue estimates for the third quarter as retailers shifted towards domestic shipping from direct imports. However, the company was poised for a strong finish to the fiscal year amid efficient inventory management and growth in orders from U.S. retailers since the start of Q4.
During the earnings call, Mattel, Inc. (NASDAQ:MAT)’s Chairman and CEO, Ynon Kreiz, said that despite a challenging third quarter, the company’s fundamentals remain healthy and orders are now beginning to pick up significantly again. Moreover, the toy manufacturer remains on track to meet its full-year guidance for 2025.
Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company that owns several leading brands, such as Barbie, American Girl, Hot Wheels, UNO, and others.
7. Newmark Group, Inc. (NASDAQ:NMRK)
Share Price: $17.07
Forward P/E: 10.87
Number of Hedge Fund Holders: 34
Newmark Group, Inc. (NASDAQ:NMRK) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 30, the company reported strong results for the third quarter of fiscal 2025, marking the fifth successive quarter of significant improvements in top and bottom-line figures.
Total revenue increased 26% year-over-year to a record $863.5 million, driven by double-digit growth across segments. The most notable performance came from Capital Markets where revenue surged 59.7% from last year, surpassing the industry for the eighth consecutive quarter. Leasing and Other Commissions revenue was up 13.7%, while Management Services, Servicing Fees, and Other revenue grew 12.6% during the quarter.
Newmark Group, Inc. (NASDAQ:NMRK)’s adjusted EPS stood at $0.42, beating expectations by one cent and 27.3% higher than the prior year’s quarter. The company described the growth in Q3 as ‘entirely organic’, and said that it was aided by ongoing strategic acquisitions aimed at expanding its consulting and outsourcing business.
This included last month’s acquisition of RealFoundations, which will provide real estate consulting and outsourced management services to clients in Europe, the United States, and APAC.
In late October, Newmark Group, Inc. (NASDAQ:NMRK) also expanded in India and the APAC region through the launch of property and facility management services. This company has now opened 9 international offices and hired over 100 professionals outside the United States since the start of 2024.
While total expenses increased 24.9% year-over-year during the quarter, this increase was primarily attributed to ongoing investments in growth initiatives and commission costs. The company remains confident in its financial position, as reiterated by the increase in outlook for 2025 across most metrics.
The stock has had impressive returns in 2025, gaining nearly 36% year-to-date, as of the close on November 7.
Newmark Group, Inc. (NASDAQ:NMRK) provides commercial real estate services to institutional investors, corporations, and other property owners.
6. Energy Transfer LP (NYSE:ET)
Share Price: $16.87
Forward P/E: 12.33
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 5, the company reported financial results for the third quarter of fiscal 2025.
Revenue declined 3.9% year-over-year to $19.95 billion, while net income was down 13.9% from Q3 FY24 to $1.02 billion, translating to a profit per share of $0.28, which missed expectations by 5 cents.
Adjusted EBITDA stood at $3.84 billion against $3.96 billion in the prior year’s period. Distributable cash flow was reported at $1.90 billion, dipping from $1.99 billion during the same period last year. Energy Transfer LP (NYSE:ET) said that several one-time items led to the decreases, such as an additional $43 million to settle a prior tax obligation.
Despite the earnings miss, there were plenty of positives from Energy Transfer LP (NYSE:ET)’s operational performance during the quarter, with several record volumes, including terminal volumes for NGL and refined products, NGL transportation, NGL exports, and midstream gathering.
During the earnings call, co-CEO Thomas Long also mentioned the company’s policy to pursue more long-term contracts with third-parties, which are expected to generate stable revenues at better rates over more extended periods. He disclosed that Energy Transfer LP (NYSE:ET) now has multiple agreements with Oracle to provide natural gas to the latter’s data centers in the United States.
On November 4, Energy Transfer LP (NYSE:ET) announced a 20-year agreement with Entergy Louisiana to transport natural gas to North Louisiana. The supply will begin in February 2028 and run through January 2048. As part of the deal, the company will transport 250,000 MMBtu per day, with the option to expand capacity to address rising demand.
Energy Transfer LP (NYSE:ET) is a large and diversified midstream energy company in North America, with a strategic footprint across major U.S. production basins.
5. ADT Inc. (NYSE:ADT)
Share Price: $8.16
Forward P/E: $9.19
Number of Hedge Fund Holders: 43
ADT Inc. (NYSE:ADT) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 4, the company reported financial results for the third quarter of fiscal 2025, with revenue climbing 4% year-over-year to $1.3 billion, amid stable end-of-period recurring monthly revenue (RMR), which grew at a modest 1%.
Adjusted net income stood at $187 million, translating to an EPS of $0.23, which was 15% higher than the prior year and beat expectations by one cent. Another highlight of the quarter was the company’s adjusted free cash flow, which increased 32% year-over-year to $208 million.
ADT Inc. (NYSE:ADT) credited the strong results to the business’s overall efficiency, coupled with top-line growth that has created a conducive environment for future-oriented investments. The company’s CFO, Jeffrey Likosar, attributed the improved earnings to the firm’s sound capital structure and cash generation.
Following the results, the firm said it was on track to meet its full-year guidance for fiscal 2025 and was tightening the ranges slightly to reflect this confidence. It now anticipates an annual revenue between $5.075 billion and $5.175 billion, and adjusted EPS in the range of $0.85 to $0.89.
On the downside, attrition rose slightly by 13 basis points during the quarter to 13%, amid cautious consumer sentiment and relocations. However, ADT Inc. (NYSE:ADT) was hopeful of driving retention ahead, due to offerings such as ADT+ and efforts to improve customer service through AI, which should drive engagement.
Additionally, during the earnings call, the company also apprised of the transactions that had helped slash the cost of debt to 4.3%. The firm’s balance sheet reflects strong liquidity as it ended the quarter with $63 million in cash and an $800 million revolving facility.
The stock has returned 19.68% year-to-date, as of the close of business on November 7.
ADT Inc. (NYSE:ADT) provides secure, smart, and sustainable solutions to homes and businesses across the United States.
4. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Share Price: $15.42
Forward P/E: 10.23
Number of Hedge Fund Holders: 44
Huntington Bancshares Incorporated (NASDAQ:HBAN) is among the 13 Most Undervalued Stocks Under $20 to Buy. According to a Bloomberg report from November 7, the regional bank is set to acquire certain units of Janney Montgomery Scott, a wealth management and investment banking firm owned by KKR & Co.
While the financial aspects of the agreement were not disclosed, the report said that the company will be buying out Janney’s public finance group, M&A advisory business, and fixed-income sales and trading business.
People familiar with the matter said that the agreement was part of the bank’s quest to venture into new regions and businesses through acquisitions. The purchase of Janney’s units is anticipated to bolster Huntington Bancshares Incorporated (NASDAQ:HBAN)’s capital markets operations.
In related news, on October 27, Huntington Bancshares announced that it had reached an agreement to acquire Cadence Bank. This, coupled with the merger with Veritex Holdings Inc. earlier in the month, marked a major milestone for the company, helping it further expand its strategic presence in the South, most notably in Texas and Mississippi.
Huntington Bancshares Incorporated (NASDAQ: HBAN) is a regional bank holding company headquartered in Columbus, Ohio, with a market capitalization of over $24 billion. It is the parent company of the Huntington National Bank.
3. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Share Price: $18.24
Forward P/E: 8.83
Number of Hedge Fund Holders: 45
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 10, Morgan Stanley analyst Stephen Grambling cut his price target for the stock to $25 from $27, while maintaining an Equal Weight rating on its shares.
The adjustment followed the cruise operator’s third-quarter fiscal 2025 results, with revenue missing estimates, and the company’s profit forecasts for the fourth quarter also falling below expectations.
Despite achieving a record quarterly revenue of $2.94 billion, which was up 4.7% from last year, the figure fell short of estimates of $3.02 billion, which the company attributed to a dip in air program participation.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)’s EPS came in at $1.20, beating estimates by 4 cents and exceeding guidance by 6 cents. However, the company’s profit forecast of $0.27 per share in Q4 came in below analysts’ forecasts of $0.30, due to soft demand for cruise vacations and cost pressures.
The stock is down by over 14% since the earnings call, with analysts pointing out concerns among investors about a dip in ticketing revenue, amid the cruise company’s strong focus on families.
Morgan Stanley has slashed its EBITDA forecasts by about 1% between fiscal years 2025 and 2027. The analyst stated that while third-quarter results were in line with expectations, an ongoing debate has emerged over the pricing power of cruise operators.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a global cruise company offering itineraries to over 700 destinations. It operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company has a combined fleet of 32 ships and over 66,500 berths.
2. The GEO Group, Inc. (NYSE:GEO)
Share Price: $15.41
Forward P/E: 11.63
Number of Hedge Fund Holders: 49
The GEO Group, Inc. (NYSE:GEO) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 7, Jones Trading slashed the stock’s price target to $37 from $50, citing the company’s slow growth as the reason behind the adjustment.
Despite the downward revision, the new price target reflects a 142% upside potential. Moreover, the firm said that it has a positive outlook for all business segments of the company, reflected in the reiteration of its earlier Buy rating on the stock.
In September this year, The GEO Group, Inc. (NYSE:GEO)’s subsidiary, BI Incorporated, secured a two-year contract from the U.S. Immigration and Customs Enforcement to continue delivering services for the Intensive Supervision Appearance Program (ISAP).
Jones Trading described the contract award as a significant opportunity for the company, while noting that ISAP could continue to face challenges until ICE expands its detention capacity to its target of 100,000.
In other news, on November 6, The GEO Group, Inc. (NYSE:GEO) reported financial results, with revenues up 13% year-over-year to $682.3 million, and net income soaring to $174 million from a mere $26 million a year ago.
However, the strong results were overshadowed by its fourth-quarter guidance, which fell short of analysts’ estimates and disappointed investors. The stock is down by over 10% since the announcement, closing at $14.98 on Monday, November 10.
The GEO Group, Inc. (NYSE:GEO) is a government services provider, with a focus on developing, financing, and supporting secure facilities, community reentry centers, and processing facilities.
1. Permian Resources Corporation (NYSE:PR)
Share Price: $12.80
Forward P/E: 9.75
Number of Hedge Fund Holders: 49
Permian Resources Corporation (NYSE:PR) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 6, Roth Capital lifted its price target on the stock to $16 from $15, while keeping a Buy rating on its shares.
The analyst noted the company’s strong operational performance during the third quarter of fiscal 2025, which resulted in its highest-ever quarterly free cash flow per share. Moreover, oil production was reported at 187,000 barrels per day, which surpassed expectations and was 6% higher sequentially.
CEO William Hickey attributed the operational efficiencies to strong execution, especially at a development in Texas, coupled with a 6% decrease in controllable cash costs from last year, attributed to reductions in lease operating expenses and drilling and completion costs.
Permian Resources Corporation (NYSE:PR)’s adjusted operating cash flow was reported at $949 million, while adjusted free cash flow stood at $469 million. Buoyed by the strong results, the company has raised its full-year oil production guidance to 181.5 million barrels per day (MBbls/d) and its oil equivalent production target to 394.0 million barrels of oil equivalent per day (MBoe/d).
Given the anticipated increase in production, Roth Capital has lifted its forecasts for the company’s cash flow per share in 2025 by 3% and for 2026 by 8%.
Permian Resources Corporation (NYSE:PR) is an oil and gas company headquartered in Midland, Texas. It focuses on the development of crude oil and rich natural gas reserves in the United States.
While we acknowledge the potential of PR 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 PR and that has 100x upside potential, check out our report about this cheapest AI stock.
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